Litecoin: what it is

Litecoin: what it is

By PupazzoInnevato | Pupazzo Tricks | 16 Feb 2020


Litecoin is the most famous cryptocurrency ever after Bitcoin. Litecoin is a peer-to-peer cryptocurrency that has taken a lot of inspiration from Bitcoin.

Litecoin (LTC) is therefore a peer-to-peer cryptocurrency and open source software that has been released under the MIT / X11 license. Inspired and technically almost identical to bitcoin (BTC), the creation and transfer of Litecoin is based on an open source protocol and is not managed by any central authority.


After Bitcoin, Ripple, Ethereum and NEM, Litecoin is the fifth cryptocurrency by market capitalization worldwide.

The best platform to invest in Litecoin is Plus500.

 

LiteCoin history

Litecoin was released via an open-source client on GitHub on October 7, 2011 by Charlie Lee, a former Google employee. It is a fork of the Bitcoin Core client, which differs mainly from a blocked generation time (2.5 minutes), a greater number of coins, a different hashing algorithm (scrypt, instead of SHA-256) and a slightly GUI changed.

During the month of November 2013, the aggregate value of Litecoin experienced massive growth which saw the LTC value increase by around 100% in just 24 hours.

Litecoin reached a market capitalization of $ 1 billion in November 2013. On May 9, 2017, its market capitalization was $ 1.5 billion with a price of approximately $ 30.

In May 2017, Litecoin became the first of the top 5 cryptocurrencies (by market capital) to adopt the "Segregated Witness" (abb. "SegWit"). In May of the same year, the first "Lightning Network" transaction (a P2P transaction using Segregated Witness) was completed via litecoin, transferring 0.00000001 LTC from Zurich to San Francisco in less than a second.

 

Litecoin: focus on mining

While more and more people are embracing the world of cryptocurrencies, people are looking for investment opportunities outside of Bitcoin and Ethereum. Litecoin clearly seems like a popular choice.

Consider this: the price of litecoin has increased by 7.291% since the beginning of 2017! By comparison, bitcoin "solo" has increased by 1731%.

While the identity of Bitcoin creator Satoshi Nakamoto is shrouded in mystery, Litecoin creator Charlie Lee is very active on social media and on his blog. Charlie Lee is a former Google employee who has had the vision of creating a lighter version of Bitcoin.

One of the most basic and technical differences between the two is their extraction procedure. Both use the proof of work consent mechanism. Proof of work is simple enough to understand.

Miners use their computational power to solve extremely difficult cryptographic puzzles. Puzzle solving must be extremely difficult, if it is simple then the miners will keep extraction blocks and drain the entire supply of litecoins.

However, while the part of solving the code is difficult, checking if the solution of the puzzle is correct or not should be simple. And this, in a nutshell, is proof of the work. Solving puzzles and getting a solution should be difficult. Checking to see if the solution is correct or not should be difficult.
Now, both Bitcoin and Litecoin behave slightly differently.

Bitcoin uses the SHA-256 hash algorithm for its mining purposes. In a short time, the miners discovered that they could exponentially increase their mining power by joining and forming mining pools through parallel processing.

In parallel processing, the program instructions are divided among multiple processors. In this way, the execution time of that program decreases considerably and this is basically what data mining pools are doing.

SHA 256 puzzles require a lot of processing power, which has resulted in specific integrated circuits for specific applications, such as ASIC. The only purpose that these ASICs served was bitcoin mining.

 

 

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