Cryptocurrency, Latest News

What is Litecoin (LTC) and How it works?

Litecoin is digital money that assists us with making faster transactions and payments across the world. It is open-source that help us to provide secure, fast and low-cost payment to anyone, anytime and anywhere. Litecoin lies in the top 10 cryptocurrencies. Litecoin also follows blockchain technology like other cryptocurrencies. And this blockchain is the largest decentralized network that functioned the billions of dollars of value transactions.

How does it work?

Litecoin blockchain generation rate is faster as compared to Bitcoin. Litecoin is a decentralized peer-to-peer cryptocurrency that follows the encryption method (Scrypt). Litecoin is also different from bitcoin because of the hashing algorithm, faster blockchain generations and the use of encryptions (Scrypt) as a proof-of-work (PoW) scheme.

In October 2011, a former Google engineer Charlie Lee designed Litecoin. It is known as “altcoin”, which means derived version of Bitcoin. Litecoin also follows the process of mining as other cryptocurrencies.

Litecoin is four-time faster than bitcoin. To verify transactions, Litecoin uses a proof-of-work (PoW) scheme in which miners confirms each block of transactions. And after the confirmation of one block, the next block enters the chain. The speed of transactions is faster because of mining. Litecoin produces another block to be mined each for 2.5 minutes. Litecoin uses hash algorithms for mining called Scrypt. In Litecoin, all the transactions are held by using blockchain technology. For making transactions, all you need is the internet then you can easily send money without permission to anyone, anytime or anywhere.

HISTORY of Litecoin:

A computer scientist Charlie Lee is the founder of Litecoin. He worked as a managing director in the Litecoin Foundation. Litecoin was delivered by Charlie Lee on 7 October 2011. After five days, the Litecoin network went live on 11 October 2011. In May 2017, Litecoin has considered among the top ten cryptocurrencies. A growing number of developers and suppliers are also utilizing and accepting Litecoin.

Bitcoin vs Litecoin:

Litecoin is different from Bitcoin Litecoin supply is round of 84 million coins and Bitcoin 21 million. Firstly the hash algorithm is executed to add new blocks to the blockchain in which miners solve the hash functions.

Both Bitcoin and Litecoin use different cryptography algorithms. Bitcoin blocks follow the SHA-256 algorithm while Litecoin block follows the proof-of-work (PoW) algorithm scheme called Scrypt.

Market Capitalization of Bitcoin and Litecoin also varies. The market Capitalization of Litecoin was around $13.42 billion and Bitcoin was around $1.1 trillion.
Litecoin transactions speed is faster as compared to Bitcoin. Bitcoin takes 10 minutes per transaction and on the other side, Litecoin takes 2.5 minutes. So, the Litecoin blocks generation time is higher because of its shorter period.

Litecoin used for?

Litecoin is a form of payment method which can be used for cheaper transactions. It is a virtual currency that helps us to buy and sell goods where it’s accepted to transfer funds in accounts. Proof-of-work (PoW) algorithm is used in Litecoin to verify transactions are confirmed without any bug.
To process transactions, Litecoin used the peer-to-peer method for payments without any intermediary.

Where would I be able to buy Litecoin?

If you want to buy any cryptocurrency, you can buy it through crypto exchanges. After selecting a crypto exchange it’s time to set up your account. After setting up your account, you have to decide and enter the amount of Litecoin. Now it’s time to purchase Litecoin.

Would it be worth investing in Litecoin?

Litecoin performance is more appreciable as compared to other cryptocurrencies. High speed and cost-effectiveness make Litecoin more attractive.

As we know to invest in any business, people must have the potential to bear the loss. For the secure trading of Litecoin, you need to use a Wallet that manages your funds. All cryptocurrencies faced risks like the risk of losing money and an uncertain future.

Future prediction of Litecoin:

Litecoin future prediction is positive. Yes, Litecoin has a bright future according to investors Bitcoin as a bar of gold and Litecoin as silver.

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