If you are acquainted with the crypto space, there’s a high probability you’ve already heard of Litecoin. Post-Bitcoin’s introduction in 2009, Litecoin was one of the very first altcoins to step foot in the world of cryptocurrencies. As the creators behind Litecoin have admitted, again and again, Litecoin is not much different than Bitcoin, is based on the same underlying technological architecture with a few modifications here and there. However, there are also several significant distinctions between the two.
In this post, we give you a quick overview of Litecoin and also discuss what Litecoin’s journey in the market could look like in the time ahead. Without further ado, let’s jump into it, shall we?
First Things First, What Exactly Is Litecoin?
Litecoin (LTC) is a blockchain-powered, decentralized, open-source, and P2P (peer-to-peer) cryptocurrency launched back in 2011. A decade later in 2021, Litecoin is a cryptocurrency with a broad and loyal following, and it is easily swapped out into fiat currency. As of July, 2021, Litecoin is among the top 20 cryptocurrencies across the global markets, according to market cap.
Litecoin was initially developed by Charlie Lee, an MIT graduate, and an ex-Google engineer. Charlie launched Litecoin with a goal to offer a better option where the Bitcoin blockchain fell short; in fact, he wanted to build Litecoin as ‘the silver to Bitcoin’s gold’. Litecoin can essentially be called a fork of Bitcoin.
How Is Litecoin Different Than Bitcoin?
While at a glance, Litecoin might seem the same as Bitcoin, that is not the case. Litecoin might have Bitcoin’s open-source codebase, mining mechanism, and some more features, there are obvious fundamental differences. To begin with, Litecoin has a total supply of 84 million, where Bitcoin is capped at 21 million. With Bitcoin, the block generation time is about 10 minutes, which is one of the major disadvantages of Bitcoin and keeps it from going mainstream. On the other hand, Litecoin processes block every 2.5 minutes, which is 4x faster than that of Bitcoin.
Bitcoin and Litecoin both utilize proof-of-work (PoW) consensus algorithms. However, Bitcoin’s algorithm is called SHA-256, where Litecoin uses a modified version of the SHA-256 algorithm called Scrypt. While the original SHA-256 is processor intensive, Scrypt is memory intensive. This way, Litecoin doesn’t require its miners to have super expensive machinery like the ASICs or Application Specific Integrated Circuits. Instead, Litecoin makes mining far more accessible to the average crypto user.
Why Choose Litecoin?
Since its inception, Litecoin has gradually developed a large and loyal community of users. There are quite a few beneficial qualities of Litecoin to make it a good investment choice. Namely, since the total number of litecoins to be in circulation is already restricted, you can buy or invest in LTC without risking hyperinflation. Plus, as we’ve already established, Litecoin can facilitate and process a large number of transactions for a relatively shorter block generation time. The transaction charges are also quite low.
If you need further reasons as to why Litecoin is one of the most popular cryptocurrencies, there’s the fact that it is integrated in the SegWit mechanism. SegWit, or the Segregated Witness, is a process through which the block size limit on a blockchain is increased by removing signature data from transactions. Said data is then stored on a parallel side-chain beside the main blockchain. This way, the Litecoin blockchain doesn’t get congested or lag.
Not many cryptocurrencies have seen mainstream use cases yet aside from Bitcoin, but Litecoin is among those rare few. Litecoin has been included as a means of payment in Venezuela’s international payments system. Through the Patria’s Cryptocurrency Remittance Platform, people outside of Venezuela can send Litecoin to Venezuelans, which they’d receive in the form of the Venezuelan Bolívar in their bank accounts.
Litecoin’s Path Ahead: Litecoin Price Prediction for 2021 and Beyond:
As Bitcoin’s popularity further increases, so do its price and transaction costs on the Bitcoin blockchain. Therefore, with time, traders will look for cheaper and faster alternatives to Bitcoin. While many might suggest that Ethereum will be the crypto to eventually replace Bitcoin, that is unlikely, since Ethereum was initially not developed as a currency, and the system is also quite complex. Therefore, many in the crypto world consider Litecoin to be a better alternative, and expect it to perform well in the times ahead.
Currently, the acceptance rate for LTC is quite high. Plus, the Litecoin community is quite active and keeps the enthusiasts well-informed regarding future developments. Litecoin price predictions suggest it can hold its own in the long run, and crypto experts stay optimistic about Litecoin’s performance in the future.
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