What's the difference between Litecoin and Bitcoin?
It is said by some, that if Bitcoin is gold, then Litecoin is Silver.
Litecoin is designed to be faster than Bitcoin, and to prevent the centralization of mining which has occurred in the Bitcoin network through the creation of Applications Specific Integrated Circuits(ASICs).
Litecoin uses an encryption algorithm called scrypt, Bitcoin uses SHA-256.
This difference has enabled the creation of ASICs for Bitcoin, but because scrypt requires more working memory it has prevented ASICs from being developed yet.
This has meant that Litecoin is still mined on graphics cards which are widely available. ASICs are specialized, expensive, hard to get. It's led to a less distributed mining network, which is a worrisome trend.
Litecoin is designed so that a new block is discovered every 2.5 minutes vs. Bitcoin's 10 minute blocks. This increases the speed of transaction processing, and increases the maximum number of transactions per second.
Further to the previous; Litecoin is created at 4 times the rate of Bitcoin and there will be an ultimate total of 84 Million rather than 21 Million created.
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This is a great post @ankanseth ! Thanks for sharing :)
Just a little question:
Whats happening with the transactions, if all bit or litecoins are mined? Nornally thez are getting through as soon as a block is mined correct? But if there are no block - are there no transactions too ? 🤔