Do you know that 2011, in response to a growing wave of criticism towards Bitcoin, the famous programmer Charlie Lee founded the Litecoin cryptonym? Initially, he did not want anything fundamentally new, but simply, using BTC technology (source code), to create an analog with all the eliminated flaws. In such a way a new digital currency popped up like a crypto-silver equivalent.
On the top level
Litecoin started very well. The project quickly developed, and the coin in a short time occupied the second place after bitcoin by capitalization. To date, Litecoin has lost a bit of its position and gave a green light to such currencies as Ethereum (ETH), Ripple (XRP) and EOS. But despite this, Litecoin is constantly in the top 10 and until recently has always been in the top 5 crypto money by market capitalization.
It’s being traded the most actively on such crypto-exchanges as OKEX and Binance.
Litecoin is a “lightweight” version of Bitcoin, which is envisaged by its name. It’s easy to guess that the coin has a lot in common with Bitcoin, but there are differences and they are all the innovations of Mr. Lee.
Let’s take a look at what features make Litecoin unique in comparison to BTC:
- The first difference is emission.
The maximum number of coins produced on LTC is set at 84 million. To date, more than 57 million items have already been “extracted”, so that soon (2-3 years) LTC will probably reach its ceiling. When the limit is approached, this coin will still be in demand in the crypto community. Therefore it will most likely be a deficit, as all admirers & owners of this really smart know-how will not be satisfied to full degree. In result, the price of Litecoin can be decently added to the cost. According to some experts, the price of a “silver” item in the near future can grow to 300-400 dollars per coin. It is worth noting that LTC has already reached such marks. Historical “high” was recorded on December 19, 2017, at around 370 dollars.
- The second difference is in production technology
It works according to the Scrypt algorithm, while BTC performs the SHA256 hash function. It considerably complicates the process of “mining”. Therefore there is no big sense to mine using only graphics cards or processor powers. Because all the process envisages a large number of arithmetic operations and needs the availability of fast access to huge amounts of data. So nowadays some companies have started production of specialized equipment for profitable “mining” LTC.
Litecoin is famous for virtually zero-cost transactions on a global scale. Its major benefits are open code and the use of a global payment network; its type is a decentralized one, with no control by any of the authorities. And simple mathematics of the coin provides reliable protection of resources against the intrusion of intruders and allows users to independently manage their own funds.