First of all we begin to understand what Litecoin is, when it was founded and what it is used for.

Litecoin is a peer-to-peer payment platform that offers itself as an alternative to Bitcoin, trying to solve some of the problems related to Bitcoin: it offers less expensive (in terms of commissions, "fees") and faster transactions .

What is Litecoin used for and when was it founded?

Litecoin was founded in 2011 by the former Google employee Charlie Lee and was born as a "fork" of the Bitcoin blockchain: in the early years of cryptocurrency life, in fact, most of them were attempts to improve the mother platform.

Litecoin's goal was to solve the scalability problem in Bitcoin: in fact, the currency created by Charlie Lee is able to process a maximum of 56 transactions per second, against the 3 of Bitcoin's basic capacity. A payment made through Litecoin is also 4 times faster and less expensive: an average Bitcoin transaction costs about $ 5 and takes 10 minutes to be successful, while a Litecoin payment costs a few cents and takes about 2.5 minutes.

However, the stated goal of Charlie Lee is not to replace Bitcoin, but to support it with a payment system that is more suited to smaller transactions: using a now famous phrase, the intent is to stick to silver like Bitcoin it's gold.

Also note that another difference between Litecoin and its older brother lies in the algorithm for mining: while Bitcoin uses SHA-256, which makes it necessary to undermine a processor with enormous computing power for many years now, Litecoin uses Scrypt, an algorithm that relies more on the computer's memory than on its processor.

This was designed by Charlie Lee in order to make Litecoin mining inefficient for ASICs, very expensive devices available to few, and instead make it more accessible to everyone: in this regard, discussions on the excessive concentration of Bitcoin mining are variety.

My consideration

Litecoin to date is one of the most interesting and most traded cryptocurrencies on exchanges. Not surprisingly, Litecoin is currently among the top ten most capitalized cryptocurrencies, and aims to become a 'pure decentralized digital money' regime. It is difficult to say whether the current prices are overvalued or undervalued since, including Litecoin, it is difficult to set a 'fair value' for a cryptocurrency. What is certain to date is that Litecoin is very similar to Bitcoin, but has the advantage of being faster in transactions, which means that it can be used to perfect digital payments even if these are of a small amount.