Similar to many forms of cryptocurrency, Litecoin is a decentralized peer-to-peer cryptocurrency. It is from a fork in the bitcoin blockchain. This cryptocurrency enables exchanges with zero-cost payments between people and institutions worldwide.
Litecoin and Bitcoin are similar in that they function through a proof-of-work system. Litecoin, however, due to modifications, is a faster version of bitcoin. The system used on Litecoin to make the process more efficient is a mining algorithm called script.
It produces a new block to mine every 2.5 minutes, while Bitcoin stands at 10 minutes, it makes Litecoin about four times faster. The Litecoin supply is four times as great. While Bitcoin stands at a cap of 21 million coins, Litecoin’s overall cap stands at 84 million.
How does Litecoin work?
The mining process of Litecoin is similar to that of Bitcoins and various other blockchain-based cryptocurrencies. Each block of transactions goes through confirmation by miners using high-powered computer hardware that confirms each block and secures it to the blockchain network.
This process involves many calculations hence why this is known as the “proof of work” network. Once a single block is verified, the next block can enter the chain. Generally, transactions that use blockchain technology remain anonymous. Miners who successfully verify a block receive 12.5 Litecoins.
What is Litecoin used for?
The main focus of Litecoin is to function as a medium for transacting payments without using a third party. It was initially designed to be used for cheaper transactions for more efficient everyday use. On the other hand, Bitcoin is often used as a store of value for long-term use.
How to invest in Litecoin?
Litecoin is not available for purchase from many traditional brokers. It needs to be through cryptocurrency exchanges or from an online brokerage firm. To keep your crypto safe, you’ll need to utilize a cryptocurrency wallet, a software program that manages your funds.
Even if you trust the program, you must remember and maintain a password or key to which only you have access. This has been a problem with cryptocurrency since people who forget their passwords lose access to their funds.
To get your cryptocurrency to be secure in your wallet, you need to use a crypto exchange. A crypto exchange is a platform for buying and selling crypto. Although Litecoin is theoretically used for faster payments, the fact is that crypto’s development as a universal method of payment and legal trade is still in the early stages.
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