Litecoin And It's Existence As Lite Version Of Bitcoin

Hello Steem Alliance Community

Introduction

Here comes one more cryptoasset post . Today we will discuss about altcoin, litecoin, bitcoin , similarities between LTC and BTC, differences between the two , why was LTC made , significance of LTC in market .

Let's not wait and start the discussion ■

Source

ALTCOIN

Litecoin (LTC) is a Bitcoin fork, an altcoin – a term used to refer to cryptocurrencies that are not Bitcoin. Litecoin and Bitcoin both are based on the same algorithm of verification under blockchain , but there are some differences that help us decide which will be better for us and needs .

Facts To Be Noticed :

◇ Litecoin was forked from Bitcoin in 2011.
◇ Both bitcoin and litecoin choose a proof concurrency mechanism. It is a method in which a suitable miner is chosen which can handle the highly remunerative task of verifying new datasets .
◇ Litecoin has a larger amount of tokens that will ever be issued and uses a different hashing algorithm.
◇ Bitcoin has a much higher market cap than Litecoin but processes transactions slower.

BITCOIN

Source

As I already told , the very first cry to be introduced was bitcoin in 2009 . Since then, it has evolved from a novelty to a controversial commodity, investment, and exchangeable currency.
The working of Bitcoin is highly dependent on decentralized computing networks to maintain the cogency , authority and safety of its data based blockchain.

Properties of Bitcoin that makes it a unique cryptocurrencies ::

◇ Concurrency Mechanism -
It is a mechanism also named as proof of work mechanism . It is a mechanism I which digital power is used to see which block that is.; miner will be suitable for the verification process as it is a very important and profitable task.

◇ Function SHA-256 is an cryptographic function that provides encryption for blockchain . Its hash function transforms all the input into a fixed length output for as to encrypt them later .

LITECOIN

Source

A Google engineer Charlie Lee launched a cryptocurrency which was bit similar form of bitcoin in 2011. He announced Litecoin as the lite version of bitcoin on his Bitcoin forum.

Ever since it's establishment, Litecoin was always aimed in response to the Bitcoin’s increased concentration. Henceforth, many of the hallmarks of Bitcoin that worked wonder in its initial stages ( according to Lee and developers ) were copied in Litecoin. Even the developers knew that many of its aspects had the room for betterment.

Notable Aspects Of Litecoin ::

◇ Concurrency Mechanism - It greatly uses proof of work principle but is less dependent on digital power .

◇ Use of password based algorithm - A password based key etymology function knows as Scrypt . It is basically made to prevent custom hardware attacks on large scale . Litecoin uses this ( ESS-crypt ) for its hash functioning.

◇ Scrypt uses SHA-256 but involves much higher memory requirements for its proof-of-work mechanic.

On May 2, 2024, the Litecoin network's hash rate averaged 1.0 peta-hashes per second, while the Bitcoin network's hash rate was 581.83 exa-hashes per second ( more than 581,000 times as compared to ) Litecoin because of the popularity of Bitcoin.

KEY DIFFERENCES

Source

Hashing Algorithm

The major difference between both the cryptocurrencies at at their hashing algorithms .
As mentioned earlier, Bitcoin uses SHA-256, which is processed much faster on graphics processing units and specialized machines.

Market Capitalization

Another area in which Bitcoin and Litecoin differ significantly is their market capitalization, the total dollar market value of all coins in circulation. Bitcoin is more popular; demand for it has grown so much that its exchange rate is much higher. Litecoin's market potential is much lower because Bitcoin has a lower supply and higher demand, and the market expects more of it.

Distribution

Another huge difference that stands out between Bitcoin and Litecoin is the number of coins presented for each . The Bitcoin network can never exceed 21 million coins, while Litecoin has a limit of 84 million coins.

The high number of coins in Litecoin may seem as an advantage but one must not forget that price freeze for 》commodities and investments and 》consumers and capitalists ... decides the demand of cryptocurrencies.

Bitcoin is more popular and has a higher price due to market sentiment and a lower supply

CONCLUSION

Litecoin was not made to overcome Bitcoin but to rather aim in its growth and potential. One can't decide on the basis of coins for which would have market value and more demand as the demand is decided by investors and customers. Litecoin has a bright future as there are many aspects which can be further improved , along with which it has better options .

Thankyou

India, 17.05.2024
@moyeon