Litecoin is one of the very first altcoins that was created by a former developer from Google. His name is Charlie Lee and he launched the Litecoin project on October 13, 2011.
Litecoin is therefore a very old currency that has survived the vagaries of time unlike many other cryptocurrencies. Its survival is mainly explained by two things, the characteristics of the cryptocurrency and the transparency of the project.
As for the transparency of the project, it starts with the fact that its creator is a personality recognized by all unlike the Bitcoin project where no one knows who created this currency. Many more traditional investors are reassured by this point. As for the characteristics of Litecoin, one could say that it is a bitcoin improve in terms of speed. It is much more liquid and its transaction costs are more reasonable. The main technical and economic changes are as follows:
- 1 block issued every 2 minutes (versus 10 minutes for Bitcoin).
- 84 million Litcoin issued (versus 21 million for Bitcoin).
- A mining difficulty that changes every 2 and a half days (against 2 weeks for Bitcoin).
- A Proof Of Work system that uses the scrypt hash function (versus SHA-256 for Bitcoin).
For the rest of the parameters, they are very similar to Bitcoin. Moreover, halving takes place every 4 years.
The strength of Litecoin is that it has enjoyed an active community for more than 10 years. Its blockchain has proven itself in terms of security since it has not encountered any major problems since its launch. It is also very easy to buy and trade Litecoin. Many cryptocurrency buying platform offers it. It also has the advantage of attracting investors and individuals alike. It makes small fast payments possible unlike Bitcoin and Ethereum which has either a too slow blockchain or too high fee.
The main risk remains however that Bitcoin is catching up in terms of speed and fees which could endanger Litecoin. However, it seems that this currency still has good days ahead of it.
Do you have any Litecoin?