When people talk about cryptocurrencies, people often think of Bitcoin, the most valuable currency in the world to date.

But in recent years, in Vietnam in particular and in the world in general, there has been another type of cryptocurrency named Litecoin. If Bitcoin is referred to as "gold" then Litecoin is considered "silver".

So what is the difference between these two currencies? Find out together by reading the following article:

1. Differences in exploitation:

Litecoin is a cryptocurrency created through mining with specialized equipment. The main difference is 2.5 minutes to create a block, while 10 minutes to Bitcoin. Charlie Lee used to be Former Director of Coinbase - the most popular Bitcoin wallet service platform.

Bitcoin uses the SHA-256 proof work algorithm. Create an arms race in ASIC hardware technology and push Bitcoin mining difficulty exponentially.

Litecoin uses the Scrypt algorithm with the original name of S-crypt. This algorithm is in combination with the SHA-256 algorithm, but its computational power is more stringent than that of SHA-256. Scrypt prioritizes a large amount of high-speed RAM instead of using only raw processing power.

2. Transaction differences:

The main difference is that Litecoin can confirm transactions much faster than Bitcoin. As follows:

Litecoin can handle larger transaction volumes thanks to faster block creation time. If Bitcoin tries to catch up with this speed, a major change in the code is needed that requires common consensus.
The disadvantage of this higher block creation rate is that Litecoin's blockchain is growing at a larger scale than Bitcoin, with more "orphan blocks."
Faster block creation time reduces the risk of "Double Spending attacks" - theoretically when both networks have the same hashing power.
A transaction waits at least twice for 5 minutes, with Bitcoin taking 10 minutes.