From the beginning, there have always been doubts and confusion regarding cryptocurrency. There are many aspects to consider, like which crypto to invest in and its reliability and stability. Litecoin is the first altcoin ever, created by the former Google engineer Charlie Lee. It was made two years after bitcoin, and the name connects to how it will be “lighter” than Bitcoin. Here are some facts about Litecoin that you should know.
How is Litecoin similar to Bitcoin?
Litecoin is similar to Bitcoin in many ways. They are both decentralized systems; a central authority does not govern them. They work as open-source global payment networks. Lastly, as with Bitcoin, Litecoin is created through mining.
- Litecoin generates a new block every 2.5 minutes. The miner sees the block once it has been validated by mining software. Once a miner confirms the previous block, the following block enters the chain, a record of every Litecoin transaction ever done. In contrast to the 6.25 blocks in the blockchain, the miner receives 12.5 Litecoins for successfully validating a block.
- Litecoin was initially created to address the limitations of bitcoin but at the same time to compete with it. The two also come with their differences.
- Not only are Litecoin and Bitcoin referred to as sisters. Rather because Litecoin came about through the same seed as Bitcoin, they share more similarities than you would expect.
- Litecoin’s block generation rate is faster than that of bitcoins. A Litecoin transaction can take about two and a half minutes, while a bitcoin transaction can take 10.
- Since only 21 million Bitcoins can be created, the algorithm of Litecoin allows for the production of up to 84 million LTC, making it four times larger than its older sibling Bitcoin.
- It uses the Scrypt proof-of-work (PoW) algorithm, making it resistant to ASICs and more accessible to regular users. Therefore, increasing the centralization of Litecoin.
We hope after reading this article, you gained some valuable facts about Litecoin worth knowing.
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