CryptoZiller Litecoin Dashboard
What is Litecoin?
Litecoin (LTC) is a peer-to-peer cryptocurrency that utilizes blockchain technology to manage distributed public ledger of transactions and allow transfer of funds directly between individuals or businesses, without the need for a central entity such as banks or payment processing providers.
Litecoin was founded by Charlie Lee as a solution to some of the problems and issues associated with Bitcoin such as the number of transactions per given time.
How is Litecoin different from Bitcoin?
Litecoin serves the same purpose as Bitcoin except that Litecoin edges Bitcoin in terms of speed, hashing algorithm and payment transaction costs. Litecoin was created to be silver to Bitcoin’s Gold, but it generates blocks about four times faster than Bitcoin. That is, Litecoin can validate transactions much faster (typically 2.5 minutes) and process a much higher number of them over a given time frame.
Again, when it comes to the number of coins being created, Litecoin has an edge over Bitcoin. While Bitcoin has a limit of 21 million coins, the supply of Litecoin will reach its peak at the 84 million mark. There can be no new coins when this limit is reached, meaning there will be more Litecoin tokens in the market than Bitcoin.
For small transactions, the cost of transferring any denomination of Litecoin is relatively cheaper than that of Bitcoin. As a result, Litecoin offers the option to pay for everyday goods and services using Litecoin (LTC) currency.
How does Litecoin Mining work?
Another striking difference between Litecoin and Bitcoin is the hashing algorithm that each uses to solve a block or facilitate a transaction. While Bitcoin’s hash power is largely distributed among mining pools and a less decentralized subset of miners, Litecoin aims to keep the hashing power decentralized.
Litecoin mining is no longer profitable using GPUs and CPUs. Today, miners can leverage unprecedented speeds of ASICs (Application-specific integrated circuits) to mine Litecoin much quicker. In a Litecoin mining environment, miners utilize their ASICs to solve complex computational problems and then pass the data within a block through Litecoin’s algorithm until their collective power discovers a solution. Once a solution is found, all the transactions within their respective blocks are fully verified and validated as legitimate.
Litecoin’s mining allows miners to reap the fruits of their labor each time a Litecoin block get solved. The most powerful hashers that contributed in solving the block are given the lion’s share of a predefined number of coins. Those looking to mine cryptocurrency in order to earn rewards are required to join pools, where their computing power is combined with others to solve complex blocks of transactions.
Unlike Bitcoin that uses SHA-256 algorithm, Litecoin employs a memory-intensive algorithm known as Scrypt. This hashing algorithm places a higher emphasis on utilizing high-speed RAM, making it less possible for a single miner, or collective group of big miners, to dominate the mining environment. Also, Scrypt makes it easier for miners to access Litecoin, encouraging more novice miners to participate in the system.
How can you acquire Litecoin?
If you are interested in purchasing Litecoin, but not thinking of mining it, there are many websites that offer exchanges with another currency such as Bitcoin (BTC). These websites, also known as Exchanges, allow you to purchase Bitcoin with actual FIAT currency including USD and EURO, and then to exchange the bought BTC for Litecoin.
What are Litecoin wallets?
Litecoin wallets are secure digital wallets that are used to store Litecoin (LTC). Litecoin wallets are either software-based, like the ones that reside on your mobile phone, tablets or computer, and physical hardware based wallets like Ledger or Trezor.
Each Litecoin wallet has a private key required to receive and send coins to and from your Litecoin address. The keys are stored in an inherently more secure hardware wallet.
Litecoin also provides an option to install Litecoin Core a laptop and desktop software that allows you download the entire blockchain from a peer-to-peer network, without censorship or third-party interference.
If you want to explore the amazing world of Litecoin including Litecoin transactions, records or search for individual blocks, use Litecoin Block Explorer.