Bitcoin was the first cryptocurrency ever on earth. For the primary few years, there were no other cryptocurrency to take on teh likes of Bitcoin. This created a monopoly of sorts until Litecoin showed up to the scene in 2011. Litecoin introduce the word altcoin to the world by being the first altcoin to have ever been created.
At its core, Litecoin is predicated on an equivalent code as that of Bitcoin. The main aim of both these cryptocurrencies is to make everyday payments a whole lot simpler and cheaper. The sole difference between the two is that the fast speeds and close to zero transaction fee that Litecoin offers sets at a whole new level.
Litecoin is often seen whilst the importantreal world testing ground for all new features planned for the Bitcoin network. Since both these coins were forked off the same code-base, the updates are initially implemented on the Litecoin blockchain, and these later implemented to the Bitcoin blockchain also.
One of the recent tests was the Segwit update. The Segwit upgrade was first initialized on teh Litecoin network. On seeing the success of this implementation, it was implemented on teh Bitcoin network as well.
To reduce the transaction confirmation time, the typical block interval of Litecoin was reduced from 10 minutes to 2.5 minutes.
Litecoin was created by Charlie Lee, who is a very well known personality in the crypto world. It had been only during the creation of Litecoin that it had been revealed that the utmost number of Bitcoins was capped at 21 million. The utmost number of Litecoin is fourfold that of Bitcoin i.e. 84 million Litecoins.
Due to their uncanny similarities, Litecoin has usually been considered the silver to Bitcoin’s gold. During the last crypto Bull Run, all the crypto networks had been clogged with many transactions and users had to pay a better fee to urge their transaction verified quickly. This wasn't the case with Litecoin. The transaction fee of all cryptocurrencies went through the roof. Whereas the transaction fee of Litecoin decreased several fold. Thus, we could see more people using Litecoin as their daily driver for crypto payments. Many of us even saw Bitcoin as a useful store of value and used Litecoin as a payment mode.
Litecoin did have its share of ups and downs during its lifetime. With not many of us contributing towards the project, it still managed to stay within the top 10 cryptocurrencies in the world based on its market capitalization.
The team behind the project:
Litecoin was created to enrich Bitcoin within the year 2011. It had been created by an ex-Google employee, Charlie Lee. Back then, Charlie was the sole one who was working on the project. Another important team member in the Litecoin project was Warren Togami. Together Warren and Togami were ready to bring out the primary version of Litecoin.
Charlie was initially performing at Google and later went on to be an important figure at Coinbase. Warren, on the opposite hand, started working with Blockstream. With no permanent contributor to feature more features to the Litecoin network, it seemed like a dead-end for the project because the price of Litecoin did not cross $30 during the amount between 2011 and 2016.
Charlie went on to quit his job at Coinbase and began performing on the Litecoin project. it had been during this era, that the interest in Litecoin peaked the foremost. Charlie Lee is extremely active on Twitter and his return to the Litecoin project, drove tons of his followers to start out using Litecoin again.
To make things better, another developer, who goes by the name ‘Shaolin Fry’ joined the team within the year 2016. Over the past few years, Litecoin has seen tons of improvements to its code base and has even defeated Bitcoin in terms of the number of transactions being made. Currently, Litecoin has over 450 contributors, who are constantly performing on adding new features to form the platform more user-friendly and easier to use.
Getting started with Litecoin:
Litecoin was developed within the year 2011 with the hopes of making a network that would verify transactions at a faster speed and thus, handle more volume of transactions. The most problem with Bitcoin was that it had been unable to handle an outsized volume of transactions. This is often because the ten minute block time on Bitcoin didn't allow more transactions to be verified during a short time duration.
Additionally, the mining algorithm employed by Bitcoin is that the SHA256 algorithm. This algorithm is only contingent on the computational power of the mining rig. This led to the creation of huge mining pools, which resulted in the partial centralization of the network. Thus, the entire network is controlled by a few large mining pools. This is often against the idea of decentralization.
Litecoin offers the right solution to the issues faced by Bitcoin. To hurry up the transaction confirmation speed, the typical block time has been reduced to 2.5 minutes on the Litecoin network. This increases the transaction speed by fourfold, as compared to the Bitcoin network.
Litecoin has since, ditched the SHA256 mining algorithm and has implemented the Scrypt algorithm onto its network. The Scrypt algorithm uses more memory, which suggests that maintaining a mining pool wouldn't be very efficient. Thus, keeping the network completely decentralized.
There are currently over 64 million Litecoin in circulation, and the maximum supply is capped at 84 million Litecoin. It offers the foremost convenient solution for using cryptocurrency in making quick payments.
Additionally, because the core part of Litecoin is predicated on an equivalent code as Bitcoin, new updates are first seen on the Litecoin network and are then ported on to the Bitcoin network. Thus, Litecoin acts just like the world test net for the Bitcoin network.
How does Litecoin work?
Litecoin was designed with an equivalent goal as that of Bitcoin. Offering a quick and cheap mode of payment through the utilization of cryptocurrencies, are the motivation behind many such projects. However, Litecoin has been the foremost successful of the lot because it has managed to stick to its core ideologies.
Just like Bitcoin, Litecoin is mined employing a mining algorithm called Scrypt. The most criticized problem with Bitcoin’s SHA256 algorithm was that folks could use the facility of parallel processors which led to everyone mining using ASIC miners. This power monarchy resulted in Bitcoin becoming partially centralized. The Scrypt algorithm employed by Litecoin uses a more serialized mechanism. This suggests that Litecoin requires more RAM than raw processing power. Thus, making ASIC miners obsolete in mining Litecoin.
The transactions on the Litecoin network are done equivalently as they're done on the Bitcoin network. A wallet consists of both the general public and a personal address. To receive funds, users got to enter the receiver wallet’s public address. To use the funds present within the wallet, users got to sign the transaction using their private address.
Litecoin was created to make a far better version of Bitcoin for the planet to use. By far, this altcoin has come very near to achieving this goal.
The strengths of Litecoin:
Bitcoin is the most dominant cryptocurrency alive. However, it too struggled in many aspects. Litecoin was designed as an upgrade to Bitcoin and it's managed to convert Bitcoin weaknesses into its strengths.
1- Scalability: The ten minute block time on the Bitcoin network has led to the scalability issue that we are currently witnessing. To stand up to the centralized payment system, the decentralized world should also offer similar transaction speeds. However, with a ten-minute block time, Bitcoin cannot offer speeds anywhere on the brink of that offered by VISA. Litecoin, on the opposite hand, features a block time of just 2.5 minutes and is fourfold as fast as the Bitcoin network. With Segwit activated, it offers speeds that solves all the scalability issues that have plagued other cryptocurrencies.
2- World test net: Litecoin has an equivalent code base as that of Bitcoin with a couple of changes. This makes it the perfect real-world test net of the Bitcoin network. Prior to releasing new features on the Bitcoin network, they are put to test on the Litecoin network. This ensures the standard of all new features which will be added to the Bitcoin project. For instance, Segwit was first tested and implemented on the Litecoin blockchain. Atomic swaps are being tested on the Litecoin blockchain, and can soon make an appearance on the Bitcoin network also.
3- ASIC resistant network: Litecoin uses the Scrypt mining algorithm for verifying transactions on the network. This algorithm works in a more serialized manner. This is often memory intensive and requires more RAM. Thus, making the ASIC miners less efficient while mining Litecoin. This also puts an end to the concentration of mining power with just a few mining pools. Thus, we can all agree that Litecoin is more decentralized.
How to buy Litecoin?
Just like Bitcoin, Litecoin is one of the top cryptocurrencies in the world. With a market cap of over $2.7 Billion, Litecoin is out there for purchasing and trading on all the main exchange platforms like Binance, Krake, Bitfinex, Poloniex, etc.
On these platforms, Litecoin is paired with other cryptocurrencies like BTC, ETH, USDT, XRP, etc. you'll also buy Litecoin using fiat currency on exchanges like Coinbase and Bittrex.
Once you get your hands on some Litecoin, it's always advised to transfer the coins into your local Litecoin wallet and store it safely. As Litecoin was the very first altcoin, extensive wallet support for Litecoin is out there.
Amongst all the choices available, it's always recommended to store Litecoin on a hardware wallet, like the Ledger Nano S or Trezor. If you're unable to afford a hardware wallet, then pick a paper wallet to store your coins. As a final resort, store a really small value of tokens on the exchange if you trade fairly often.
Future of the coin
Most of the mistakes made by the Bitcoin blockchain have been rectified on the Litecoin network. Satoshi Nakamoto, the anonymous creator of Bitcoin holds over 1,000,000 Bitcoin in his wallet. This makes him the most important influencer of the Bitcoin blockchain. If the coins from this wallet are ever sold, the price of Bitcoin is going to be largely impacted. This threat is feared by many who are invested in Bitcoin.
The Litecoin creator, Charlie Lee went on to sell all his Litecoins. The best part was that the money that he got by selling his litecoins were entirely donated to charity. This was done to prove that his intentions aren't for his benefit, except for the event of the Litecoin blockchain. Thus, Litecoin brings along side it, the trust of the people.
The project is under continuous development. Litecoin has already successfully tested out atomic swap within the year 2017. we will see this being implemented very soon. Once this feature is implemented, it might make all the exchange platforms useless, because the on-chain exchange wouldn't cost the user any fee, whereas exchanging on an exchange platform would cost a particular fee.
After the atomic swap feature is implemented, Litecoin is unquestionably getting to gain tons more users on its platform. Additionally, many other features like the lightning network also are being tested on the Litecoin blockchain. Thus, Litecoin is destined to possess a bright future.
How is Litecoin better than other cryptocurrencies?
Litecoin solves the most important problem that has plagued the cryptocurrency world, the scalability issue. Without having to extend the block size, Litecoin has implemented the simplest possible solution to form all transactions faster and cheaper.
It also acts sort of a real-life test net for the Bitcoin blockchain. Thus, we often see many new features first implemented on the Litecoin blockchain before it gets adopted by the Bitcoin network.
The Scrypt algorithm employed by Litecoin makes running mining pools inefficient. Thus, giving a far better opportunity to individual miners and bringing back decentralization to the entire network.
On top of all this, the Litecoin development team is extremely active when it involves adding new features, addressing any bugs, also as interacting with the community of users. By having the ability to interact with the Litecoin creator himself, gives Litecoin a serious lead over the other cryptocurrency out there.
Should I invest in Litecoin?
After its creation, the Litecoin project was quite abandoned. With no permanent developer to feature new features, the cryptocurrency fell down the ranks. This all changed once Charlie Lee returned to the project taht he had created. More developers are contributing to the present project. Even when the crypto market is on a down run, Litecoin is experiencing a low decrease in its value.
Once the new features like atomic swaps are added to the project, we'll see a rise within the number of users from round the world. Moreover, Litecoin currently offers the simplest solution to form payments daily. So, investing immediately during this project would be a really good idea.
Litecoin is one among the foremost user-friendly cryptocurrencies that you simply can get your hands on. Since it addresses most of the scalability and centralization issues faced by Bitcoin, Litecoin may be a highly loved cryptocurrency. it's also very easily accessible. of these features have secured it a spot amongst the highest ten cryptocurrencies within the world.
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