This article will uncover Litecoin facts you probably didn’t know about. 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. It is the first altcoin, 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 that you should know.
How is it similar to Bitcoin?
Litecoin is most often referred to as the “silver to Bitcoin’s gold” because of its similarities with the original cryptocurrency. The key similarity between the two is their decentralized systems. The central authority, such as a government or bank, does not govern them. Instead, the networks operate on a peer-to-peer basis, with users able to send and receive transactions without needing a go-between. Both Bitcoin and Litecoin are open-source payment networks. This means their code is publicly available for people to view, use, and edit. This makes it easier for developers to build on these networks and create new applications.
Finally, like Bitcoin, Litecoin is created by mining. Despite their similarities, there are also key differences between Bitcoin and Litecoin. Litecoin is known for its faster block time compared to Bitcoin. Transactions can be processed faster. Litecoin also uses a different mining algorithm than Bitcoin, known as Scrypt, making it less susceptible to mining using specialized hardware. This means that Litecoin can be more easily mined by individuals using consumer-grade hardware, which can help to decentralize the mining process.
- It 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 transaction ever done. In contrast to the 6.25 blocks in the blockchain, the miner receives 12.5 Litecoins for successfully validating a block.
- It 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.
- Its block generation rate is faster than that of bitcoins. Its 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 it 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.
- Charlie Lee created it in October 2011. Charlie was working as an engineer at Google at the time.
- It was the first cryptocurrency to implement Segregated Witness (SegWit). A unique technology that separates transaction data from digital signature data, resulting in increased transaction capacity on the blockchain network.
- It was also the first cryptocurrency to conduct a Lightning Network transaction, a protocol allowing for faster and cheaper transactions off-chain.
- It has a different block reward halving schedule than Bitcoin. While Bitcoin halvings occur every 210,000 blocks, Litecoin halvings occur every 840,000 blocks.
- Its hash rate reached an all-time high in May 2021, going above 523 terahash per second (TH/s).
- It has yet to be integrated into various payment processing systems, including Coinbase Commerce, BTCPay, and Aliant Payment Systems. Leading to increased adoption of Litecoin as a payment method among merchants and consumers.
- It has also been involved in several partnerships with UFC (Ultimate Fighting Championship) to promote Litecoin utilizing sponsorships and advertising.
We hope after reading this article, you gained some valuable facts worth knowing.