Crypto Academy Week 9 - Homework Post for @yohan2on|| All About Litecoin
It was great reading your lecture, @yohan2on. It’s great to be back in the season 2 of the academy.
On the homework this week, I will like to explore the Litecoin ecosystem. In order to do a clear a detailed homework, I will like to arrange my piece under the following headings:
Introduction to Litecoin: How it Started
What is Litecoin?
Technology of Litecoin
Transaction Speed
Scalability of Litecoin
Security of Litecoin Block Chain
Summary
Introduction to Litecoin: How it Started
Litecoin is a product of hard fork. It was created by Charlie Lee, an ex-Google employee, in 2011. The idea for the creation of Litecoin was born out of the believe that Bitcoin has a lot of flaws, a notion held by almost every developer worldwide.
Among the flaws Litecoin sought to bridge are transaction speed, scalability and the mode of mining. This is where the hard fork comes in.
A hard fork is the process of improving on a block chain by making major changes through the creation of another block chain, thus Litecoin runs on its own independent block chain.
What is Litecoin?
Litecoin is referred to as Bitcoin Silver because of its similarities to Bitcoin. It was created to serve as a global payment system, with more transaction speed, fees and scalability. This is to say that the block chain is decentralized, thus needing no third party in its transactions.
To explore more on what Litecoin really is, we need to look at its solution to real world financial problems, by considering some details.
The first solution is reduction of gas fees. It costs quite a few cents to send Litecoin around the world. This is a direct solution to exorbitant bank charges experienced by people in their daily transactions with the local banking system.
Second, it takes only about 150 seconds for funds sent as Litecoin to be delivered to the receiver. This is a direct contrast to transactions with banks, which could take days. For example, I sent some money in our local Naira to a friend 3 days ago to buy a PC for me. The money took 24 hours and still got reversed to my account and I had to send again.
If it was Litecoin, my PC would have been bought that same day within minutes.
Third, the decentralized protocol of the Litecoin block chain gives users full control over their funds. Thus, users don’t need to fill forms in order to carry out their transactions.
Technology of Litecoin
In order to send and receive funds in Litecoin, a Litecoin wallet must be created. Litecoin wallet is available in exchanges where it is listed, example, Poloniex, Binance, Bitmart, Houbi, among others.
It is also available in cold wallets like Trust wallet, among others. Creating a Litecoin wallet is free and for exchanges and some cold wallets, the Litecoin wallet address is created automatically when you sign up into the platform.
Transaction Speed
Recall that Litecoin was created to leverage on Bitcoin’s flaws, one of which is transaction speed. A quick comparison shows that transactions with Litecoin is four times faster that in Bitcoin, as Bitcoin takes 10 minutes for a transaction block to be confirmed, while Litecoin takes only 2.5 minutes.
Scalability of Litecoin
Scalability is the ability of a block chain to handle more transactions per unit time. Litecoin is highly scalable, compared to Bitcoin. While handle about 7 transactions per block, Litecoin can process a maximum of 56 transactions per second.
This goes on to show that Litecoin is designed to accommodate future influx of high demand on its block chain.
Security of Litecoin Block Chain
The Litcoin block chain is highly secured. Its decentralized protocol makes it impossible to be controlled by a single entity. Thus, there is transparency and trust on the usage of the block chain.
Summary
It is important to note that the Litecoin ecosystem is too vast to be covered in a single piece. Thus, we can summaries it as follows:
Total supply: 84,000,000 Coins
Maximum Volume of transactions per second: 56
Transaction time: 5 minutes
First transaction done on the block chain: 13th October, 2011
Mining Algorithm: Proof-of-work (PoW)
This piece is not intended to make you fall in love with Litecoin, as more research need to be done if you choose to invest in the project.
Thank you for reading.
Hello @greatness96,
Thank you for participating in the 1st Week Crypto Course in its second season and for your efforts to complete the suggested tasks, you deserve a 7/10 rating, according to the following scale:
My review :
Congratulations on a great article that covers several aspects of Litecoin cryptocurrency, you have a great way to move from paragraph to paragraph, even the great research you have done is evident here.
What I suggest for the task to be complete is that you focus on one or two ideas for their analysis and give your opinion critically and why not add your experience of using this cryptocurrency, so that the reader follows you to the end.
Thanks again for your effort, and we look forward to reading more of your work.
Sincerely,@kouba01
Thank you, bro. Actually, Litecoin is a coin i missed out on investing and it seems to be late now because i saw it when it was $40/1. Thank you for your honest review.