- In this article, we will try to give a detailed answer to the question of what is Litecoin. Litecoin (LTC) is one of the leading crypto currencies in the crypto currency world. It is peer-to-peer, meaning it is not governed by any central authority. It just switches between spouses on the Internet.
- What is Litecoin and why was it created?
- How does Litecoin work and what is the technology behind it?
- Atomic Swaps, another Litecoin technology, ensures blockchain
- Is Litecoin real money?
- Benefits Speed:
- Can Litecoin be used anonymously?
- How safe is it?
- What do teams do on Litecoin?
- Which financial instruments use Litecoin?
- Litecoin mining
- Litecoin wallet
- Is Litecoin worth the investment?
It functions as a payment to people anywhere in the world without an intermediary to process the transaction. Payments are incredibly fast and cheap.
Litecoin, created in 2011, has been around for about ten years. This cryptocurrency is the fifth most valuable cryptocurrency in terms of market cap.
What is Litecoin and why was it created?
Charlie Lee realized that there is huge potential in cryptocurrency, thanks to Bitcoin, the founder of Litecoin. However, this new pioneer also noticed some limitations in the digital asset. Bitcoin was too slow to transfer and too expensive to process regularly. Lee realized that these traits were not welcomed by humans.
Lee designed this cryptocurrency to create more blocks and have a higher maximum amount than Bitcoin. In this way, it could be faster and more accessible than Bitcoin.
This cryptocurrency struggled to reach the popularity of Bitcoin because it was the first of its kind for people to invest in any other cryptocurrency other than Bitcoin. However, as the technology behind the chain improves, people are more likely to be disappointed by Bitcoin’s slow speed and more expensive transaction fee. It has become a stock of value, as opposed to an option for low value, daily payments.
How does Litecoin work and what is the technology behind it?
Because Litecoin has 2.5 minutes of block verification, its transactions are much faster than Bitcoin transactions that take 10 minutes. Every transaction between two units is recorded in the blocks of the chain.
It is built on the same fundamentals as Bitcoin. Both BTC and LTC can be considered as consequences of this, and as a result create leftover blocks. Blocks are now created by the processing of two mines at the same time, initially the blocks are accepted by the chain, but then a block is disabled. Uses Split witness (SegWit) to reduce the duplication of residual blocks caused by low block confirmation time.
Atomic Swaps, another Litecoin technology, ensures blockchain
interoperability. In fact, it enables the exchange between cryptocurrencies before the exchange takes place.
Is Litecoin real money?
The main purpose of Litecoin is to use crypto currency in daily life. Its speed and conspicuous low pricing confirm this. Its predecessor, Bitcoin, is moving from small purchases to a store of value for large investments.
Bitcoin is very expensive and too slow to make transitions. That’s why Litecoin was designed to be fast and cheap to develop it, making it easier for daily use.
Since websites and companies see LTC as a form of payment, LTC can be thought of as “real money” rather than a tool that makes the value transition in crypto currencies in the world.
Transactions in Litecoin are very fast. It usually takes around 2.5 minutes, that is, 4 times faster than Bitcoin (10 minutes). It achieves this thanks to fast block operations.
LTC is a very cheap cryptocurrency for transactions, especially when compared to Paypal’s regular fees, credit cards and electronic transfers. It’s even incredibly affordable compared to Bitcoin, which has a transaction fee of $ 12 at the time of this article.
Fast block formation:
A block is processed every 2.5 minutes and 12.5 LTC is created, at the time of this writing (January 2021), the next halving will take place in August 2023. This means there is more LTC around. If you are an avid miner, the chances of getting your efforts paid off are higher in LTC than in other cryptocurrencies.
Thanks to Atomic Swap technology, Litecoin can be converted to other currencies without swap, thus saving your money.
Lack of center:
LTC transactions are community verified and records are stored on the blockchain. This indicates that a central authority is not managing LTC.
Can Litecoin be used anonymously?
A record of every transaction between the parties is always stored inside the blockchains. However, it is of course possible to use a pseudonym. The recording of every transaction uses their wallet numbers because this is where the coins are stored. However, tracking these numbers one by one is extremely difficult. Therefore, LTC provides a high level of privacy, but it is important to know that these transactions are not completely anonymous.
How safe is it?
There are a number of ways in which digital currency helps secure and ensure the safety of cryptocurrency holders. For example, they collectively have protection against attacks because attackers break the network using small operations.
yeast can work. Litecoin blocks these transactions as financially useless. There is a charge for each transaction, no matter how small the transaction is, making such attempts an expensive undertaking for attackers.
The use of SegWit technology prevents attacks on users’ transactions. SegWit works by taking signature data from transaction logs, which prevents hackers from accessing it.
The Litecoin network has not been hacked so far. This is proof of the measures he has taken.
What do teams do on Litecoin?
Litecoin Foundation is a development team working on cryptocurrency. Their designated goal is to “advance Litecoin for the good of the community by developing and promoting cutting-edge blockchain technology”. They partnered with several companies to integrate LTC’s use in the community; They made a deal with BitcoinRewards to earn LTC from online shopping, and Meconcash to facilitate Fiat withdrawals from LTC ATMs across South Korea.
The Litecoin Core Development (Litecoin Core Development) is the developers of LTC itself and they cooperate with the foundation and also provide financial support to the core development team.
Atari collaborated with Litecoin on May 19, 2020. The partnership enables LTC to be seen as a payment method for purchasing Atari games and consoles in the future. Atari was a nostalgic choice for developers. Atari’s point of view, the partnership opens a new revenue path in the form of LTC used to purchase new consoles or Atari tokens.
Which financial instruments use Litecoin?
In 2018, the Litecoin Foundation acquired a 10% stake in WEG bank. As part of the deal, the WEG bank has adopted open source software to aid transactions. The deal allows WEG customers to obtain their cryptocurrencies through a bank, and also allows them to use these cryptocurrencies to pay for something.
WEG was naturally keen to use the fast transaction times Litecoin offered. Likewise, Litecoin was eager to take advantage of the legitimacy of partnering with an established bank like WEG. This partnership was seen as a bridge between crypto and traditional finance.
Litecoin uses a Scrypt algorithm for mining to make the process more democratic.
Bitcoin’s mining system is the system that Litecoin wants to overtake, this system was designed democratically and allowed access to all cryptocurrencies.
The Scrypt algorithm demands that the calculations for the mining action be done sequentially, rather than in parallel as in Bitcoin. This effectively prevents ASICs (Application Special Integrated Circuits) from monopolizing the mining process.
The ban on the use of ASIC was aimed at further engaging in LTC mining among those who still rely on GPUs (Graphics Processing Units) to perform the task.
No matter how slow it should be saved and still be used as a secondary energy source.
Faster verification times for new blocks acquired by LTC give more potential miners the chance to mine a block, making the mining process even more democratic.
A Litecoin wallet is a piece of software and stores LTC. When we look at these hardware wallets, we come across:
- Ledger Nano S- hardware wallet
- Trezor- hardware wallet
- Exodus- desktop wallet
- Atomic wallet- mobile and desktop wallet
- Jaxx- mobile and desktop wallet
- Loafwallet- mobile wallet
Different wallet types require different security avenues such as portability and accessibility.
Is Litecoin worth the investment?
Litecoin has a LTC cap of 84 million. At the time of writing, there are 66,245,618 LTC in circulation.
Having a limited supply of cryptocurrencies makes LTC a safe haven against the devastating effects normally caused by inflation.
Therefore, it is used as a store of value by investors in the future, during turbulent economic times.
If investors buy the idea that cryptocurrencies are the future of money, Litecoin will fit perfectly with its structure. Specially designed for fast and inexpensive online transfers, LTC can eventually become one of the leading cryptocurrencies used worldwide.