Exploring The Potential Of Litecoin

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Exploring The Potential Of Litecoin

Exploring The Potential Of Litecoin

Summary

  • Litecoin is a cryptocurrency designed from a fork in the Bitcoin blockchain, and it is the first Altcoin to be created.
  • Litecoin was created by Charlie Lee. It was designed as an open-source, peer-to-peer cryptocurrency with lower transaction fees, four times faster than Bitcoin in processing and confirming transactions.

Table of Contents

Introduction

Bitcoin was first introduced to the world in 2009. The creation of Bitcoin generated the possibility for the world to trade with a digital currency that isn’t controlled by a central authority.

However, Bitcoin has had shortcomings, which raised speculations by investors about whether Bitcoin can fulfil what it intended to be.

In order to address Bitcoin’s shortcomings, Litecoin was created. Today, Litecoin has grown in popularity among crypto investors and enthusiasts and currently ranks high among the top 10 performing cryptocurrencies in the world.

In this article, we delve deeper into Litecoin and explore all the potential of this prominent altcoin.

What is Litecoin?

Popularly known as the “Silver to Bitcoin Gold”, Litecoin is a cryptocurrency designed from a fork in the Bitcoin blockchain. It is the first Altcoin to be created as an alternative coin that merchants can use to trade, thanks to its faster transaction speed.

Today, Litecoin has become the most prominent peer-to-peer payment system in the world, and various miners can mine blocks on the network for rewards.

This coin was created in October 2011 by Charlie Lee. Charlie designed Litecoin as an open-source, peer-to-peer cryptocurrency with lower transaction fees, four times faster than Bitcoin in processing and confirming transactions.

Although this coin runs on the Bitcoin blockchain, it was designed to curb mining monopolies by large mining companies on the Bitcoin blockchain.

As a P2P payment token, traders and investors can use this token to buy and sell physical and digital goods and services. Just like Bitcoin, Litecoin requires a minimum of six confirmations for its transactions to be irreversible.

However, with its latest improvements, peer-to-peer crypto payment channels can confirm Litecoin transactions instantly.

How Does It Work?

Just like Bitcoin, Litecoin makes use of the Proof-Of-Work consensus mechanism, which requires miners to solve a complex mathematical puzzle before adding a new transaction to the block.

For Litecoin, miners are required to solve a complex puzzle every 2.5 minutes. Whoever solves the puzzle first gets rewarded LTC tokens and the right to add a new transaction to the blockchain.

To make the process easy, Litecoin makes use of an algorithm known as Scrypt. This algorithm doesn’t just increase transaction speed, but it also makes Litecoin mining easily accessible.

Comparison With Bitcoin

Although Litecoin was forked out of the Bitcoin blockchain and shares significant similarities with BTC, it still has some differences.

One significant similarity with Bitcoin is that Litecoin halves every four years, just like Bitcoin. In fact, halving helps control both BTC and LTC supply.

However, let’s dive deeper into comparison of the two coins.

Comparison Table

FEATURES LITECOIN (LTC) BITCOIN
Year Created 2011 2009
Creator Charles Lee Satoshi Nakamoto
Native Blockchain Litecoin uses the Scrypt hashing algorithm to mine tokens on the Bitcoin blockchain. Bitcoin Blockchain
Native Token LTC BTC
Use Cases -Designed to process daily transactions. -Utility token for investments and donations -Store of Value for investors. -Utility token for investments and donations -For Remittances
Consensus Mechanism Proof-of-work & Minable Proof-of-work & Minable
Security & Scalability -It makes use of the Scrypt Hashing Algorithm to secure transactions. -Handles up to 57 transactions per secs. -Bitcoin uses the SHA-256 Mining algorithm to process and secure transactions on its blockchain. -Handles six transactions per 10 minutes.
Primary Users Traders, online shoppers, merchants, investors, and anyone who wants to use Crypto Financial Institutions, banks, governments, traders, businesses, investors, merchants, Crypto Whales, etc.
Market Rank & Cap Ranks #15 on the global cryptocurrency market with a market cap of $4.9 billion. Ranks #1 on the global cryptocurrency market with a market cap of $707 billion.
Competitive Advantage -Has similar features to Bitcoin. -Facilitates peer-to-peer transactions. -It is the first and most popular cryptocurrency in the world. -Highly decentralised -Best crypto to invest in and hold long-term. -Used as the primary medium to speculate the movements and growths in the crypto market
Current Price $62 $36,000
Total Supply 84 Million LTC tokens 19.543 Million BTC Coins.
Processing Speed & Standard Gas Fee -Processes block within 2.5 minutes. -Standard Gas Fee = 0.0001 LTC -Much slower than BTC. Processes a block in 10 minutes. -Confirmation takes from 10 minutes to 1 day. -Standard Gas Fee = 0.0000001 BTC
Growth Expectation LTC hit an all-time high of $410 in 2021 before it fell to $69. LTC is expected to reach $100 to $150 after the bear market is over. Ahead of its next halving event in 2023, BTC has experienced significant growth in price. It is predicted that by 2024, Bitcoin will jump from $35,000 to $45,000.
Best Trading Parity USDT USDT & FDUSD

What is LTC Crypto?

LTC is the native crypto token of Litecoin. It runs on the Bitcoin blockchain but is more liquid than BTC.

The LTC token is a peer-to-peer token that can facilitate day-to-day transactions. Today, the price of LTC is $72, and is expected to moon as Bitcoin moons.

How to buy LTC?

Buying LTC tokens is simple and straightforward, just like buying other altcoins and tokens. Here are the easy steps to purchase LTC tokens on the Bitdelta exchange.

  • Sign in to the BitDelta exchange and move to its crypto listing section.
  • Select LTC, choose the amount of LTC you want to buy, and proceed to pay for the LTC tokens you are about to purchase.
  • To purchase the token, you must pay with the money already in your BitDelta wallet. However, if your BitDelta wallet is not funded, you can proceed to fund your wallet via a bank account or debit card.
  • Once you have funded your wallet, you can easily purchase the LTC token. Once you have purchased the LTC tokens, they are safely stored in your BitDelta wallet.
    However, you can also trade your LTC tokens on the BitDelta exchange.
    LTC is paired with USDT for easy trading on the exchange.

Is LTC Crypto a Good Investment?

Although LTC has experienced criticism in the past, it is still considered a good investment choice.

Its most significant advantage is that it is highly decentralised and has similar features to Bitcoin. It is projected to increase in value as Bitcoin does over time.

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