Bitcoin v Litecoin

The Bitcoin blockchain started with a genesis block on January 3rd 2009. A couple of years later on October 7th 2011, Charlie Lee, a former Google employee, started the Litecoin blockchain, inspired by Bitcoin. It is an alternative cryptocurrency to Bitcoin and was created with a couple of intended improvements.

The first noticeable difference is the block creation speed. In Litecoin, blocks are created every minute or two, due to requiring less computational work than Bitcoin.

Secondly, blocks are created using a different so called consensus algorithm than Bitcoin. Litecoin uses a Scrypt algorithm that is intended to be more memory intensive than the hashing function used by Bitcoin.

In terms of dollar value, one LTC (the common “Ticker” abbreviation for Litecoin) is worth approximately $250 and by market capitalization (the total amount of Litecoin in existence) it is currently ranked 5th, with Bitcoin far ahead in 1st place.

A brief look-through a handful of transcations within a Litecoin block explorer reveals that the transaction cost of sending a Litecoin on the main chain is around 1 dollar, significantly less than Bitcoin currently (around $40). Additionally, Litecoin has implemented the so called Segregated Witness enhancement, which increases the number of transactions that can be included in a block, and allows so called offchain or sidechain transaction using the lightning network.

Litecoin is clearly here to stay, and IMO will remain amongst the top few cryptos out there, due to its proven staying power (6 years and counting) and its similarity to Bitcoin




You can leave a response, or trackback from your own site.

Leave a Reply (your comment will appear immediately)

Powered by WordPress