Litecoin is a peer-to-peer cryptocurrency that was launched back in 2011. It is often referred to as Bitcoin’s little brother.
Charlie Lee, a former google employee, is the one who invented Litecoin. Like Bitcoin, it is used to transfer funds between individuals without the need of an intermediary such as a bank. It also makes an interesting and useful application of the blockchain Bitcoin.
Litecoin has many differences with its brother Bitcoin such as the transaction speed, the transaction fees, mining and the total supply. Litecoin project was to propose a solution for Bitcoin’s scalability problems regarding the transaction fees and the transaction speed.
Over the same time frame, Litecoin can produce blocks four times faster than Bitcoin, which makes the transaction time 4 times lower than Bitcoin. The verification period of Litecoin is a fixed 2.5 minutes contrarily to an approximate ten minutes for Bitcoin.
The cost of sending any amount of Litecoin is about 9 cents. On the other hand, Bitcoin averages about 5 dollars, so Litecoin has a huge advantage in terms of transactions fees.
Max Supply is Low
Litecoin and Bitcoin are coins that holds intrinsic value since they have a very low total supply. Litecoin’s maximum suppy is 84 million coins while Bitcoin’s total supply is21 million coins.
Litecoin’s consensus algorithm is made so that all miners have an equal chance to get a part of the litecoins. This makes it more decentralized than Bitcoin, who’s mining profits often go to the same large mining farms or mining pools. A low maximum supply like Bitcoin and Litecoin makes the mining competition less attractive.
The algorithm that Litecoin and Bitcoin utilizes are different. Litecoin uses the Scrypt hashing algorithm that utilizes much less processing power than the Bitcoin SHA-256 hashing algorithm.
The founder of Bitcoin is a mysterious person who’s pseudonym is Satoshi Nakamoto. The origin of this person is still unknown since he has never made a public appearance. Litecoin’s founder is Charlie Lee, an ex google employee that also worked as an engineer at Coinbase so he has an impressive background.
Litecoin is one of the biggest cryptocurrency with a $12,267,271,327 market cap, ranked number five in the market. The company also has an excellent manager in Charlie Lee. He is one of the most recognizable public figure in cryptocurrencies.