Founded by Chalie Lee (a former Google employee) in 2011. This coin has many similarities to Bitcoin and is based on Bitcoin’s original source code.
Litecoin is mainly for small transactions and is most efficient for use in daily life. Compared to Bitcoin, Litecoin’s market cap is much higher and the mining process is faster. This means that, although Litecoin’s transaction size is generally smaller, the transaction speed is faster and the price is lower.
Like Bitcoin, Litecoin is a form of digital currency. Litecoin uses blockchain technology and can be used to transfer funds directly between companies or companies.
How does Litecoin work?
Litecoin involves the process of creating and transferring digital currencies using open source encryption protocols.
What is the difference between Litecoin and Bitcoin?
There are many similarities between Litecoin and Bitcoin, but there are also some subtle differences, including:
Compared to Bitcoin, Litecoin requires more complex mining technology and the speed of the generating blocks is actually four times greater. Litecoin is also much faster at processing financial transactions and can process a large number of transactions in the same period.
NUMBER OF COINS
Bitcoin and Litecoin have a limited amount of currency in circulation. Bitcoin has 21 million coins available, while Litecoin has 84 million coins available, which is more than four times the first.
Litecoin’s market value is much lower than that of Bitcoin, but it is still one of the most traded digital cryptocurrencies.
Miners must successfully resolve a function hash to add a new digital cryptocurrency block to the blockchain. Litecoin and Bitcoin use different mining algorithms. Litecoin uses the Scrypt hash function, while Bitcoin uses the SHA-256 hash function. The Litecoin development team chooses the Scrypt function to prevent ASIC-based miners from leading the mining work. This offers opportunities for CPU and GPU-based miners to participate in the competition. The Scrypt mining algorithm requires more memory resources and is not suitable for ASIC miners in the beginning, offering more opportunities for other miners. However, as time goes by, more and more ASIC miners conceive to use the Scrypt algorithm gradually. In this way, due to the low working power, CPU and GPU-based miners no longer have effective mining tools and the number of hashes generated by ASICs per second greatly exceeds.
How Litecoin markets
When you buy Litecoin in one transaction, its unit price is usually based on US dollars. In other words, you need to exchange US dollars for Litecoin. If the price of Litecoin goes up, you can sell at a profit because it can be exchanged for more dollars than when you bought it. If you are ready to sell when the price drops, you will have a loss.
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