The crypto industry is developing by leaps and bounds. Today, there is a wide range of cryptocurrency for mining. But which one to choose – depends on the personal preferences of the miner.
We’ll learn about LiteCoin in this guide. Litecoin is a cryptocurrency, often named “digital silver,” envisioned as a counterpart to BitCoin, which is often called “digital gold.” If you can hear a lot of BitCoin, LiteCoin is much less known, at the same time. So, what is LiteCoin, what are the benefits of an investment, what are the features of the mining of this cryptocurrency and how LiteCoin differs from BitCoin – all of these issues will be discussed below.
What is LiteCoin?
LiteCoin is a BitCoin fork, released in October 2011. The abbreviation (stock) is LTC. The creators of the LTC position the coin as “a peer-to-peer Internet currency that allows you to receive almost zero payments to any person instantly.” In the first several years after its launch, LiteCoin held its place stably in the top 3 concerning market capitalization. With the advent of ETH and Ripple, it lost that position, although it is in the top ten. Technically, it is identical to BitCoin, but the transaction confirmation in LiteCoin network requires far less time, and the efficiency of currency storage is increased. This cryptocurrency is popular with miners, especially LiteCoin cloud-mining. It is the most profitable way to mine coins.
This cryptocurrency is notable in that it became one of the first currencies with SegWit protocol support. Although LiteCoin used to have a high speed of confirming operations, compared to others, the Segregated Witness protocol further increased this figure. But the development of the currency does not end only on that, and it continues to move forward rapidly.
The History of LiteCoin
When Charlie Lee, a former Google employee, created LiteCoin in 2011, he had a simple goal – to improve BitCoin. Only two years after, LiteCoin broke into the top capitalization and became the second BTC fork (after Namecoin). The currency could also be a kind of insurance in case of BitCoin depreciation. In the autumn-winter of 2013, the price of the coin during the first “cryptocurrency boom” reached 50 dollars. The subsequent rollback was very serious – by the beginning of 2015, the rate to dollar fell to $1.33 per 1 LTC. The LiteCoin managed to restore its peak value of 2013 during the second “cryptocurrency boom” in 2017.
At the time of this writing, LiteCoin is the seventh largest cryptocurrency by market cap. In the summer of 2017, the total value of the currency on the market amounted to more than $2 billion, which makes LiteCoin mining profitable and attractive. Cryptocurrency is actively traded on all major online exchanges.
The Difference Between LiteCoin and BitCoin
Despite the fact that LiteCoin and BitCoin may seem similar, there are some fundamental differences between them:
- The primary technical difference between BitCoin and LiteCoin is the different cryptographic algorithms, which they use. BitCoin uses the SHA-256 hashing algorithm, while LiteCoin uses a relatively new algorithm, known as Scrypt.
- Total number of coins. The issue of coins in the network BitCoin can not exceed 21 million. The issue of LiteCoins is also limited, but LiteCoin can accommodate up to 84 million coins.
- Blocks in LiteCoin are generated faster. LiteCoin’s block generation or transaction time is 2.5 minutes instead of BitCoin’s 10 minutes. LiteCoin has more significant blocks as well, and more coins in circulation, making it more acceptable and fast when transacting.
- The LiteCoin transaction address is named differently: in the BitCoin network each address contains 27-34 digits and starts with 1 or 3. And what is a LiteCoin address? It begins with “L” and includes 33 digits, which is a fixed value.
- The LiteCoin miner built into the website will bring profit more quickly.
- Accelerated generation of LiteCoin allows using the verification mode for much longer, even if the device processor doesn’t have impressive features.
- LiteCoin provides the opportunity to mine in a pool, P2P or SOLO.
- The high speed of generation creates incredible difficulties for the double expense.
The Advantages of LiteCoin
As it is easy to notice, BitCoin and LiteCoin are similar in many ways. However, there are as many as four reasons why LiteCoin in the long term may be a more reliable investment.
LiteCoin is increasingly developing its network and introducing innovations. This allowed the cryptocurrency to “wash away” from the status of the poor younger brother of BitCoin for some time. While around BTC overclocking HYIP waves, LTC quietly introduces innovations like Segwit or atomic transaction. The main advantages of cryptocurrency include:
- Less volatility. What does it mean? The LiteCoin rate does not fluctuate so much in comparison with BTC. Large market capitalization and not such a wide interest in the media and the public, allows the LiteCoin to behave stable. The history of the LTC course is developing smoothly, not counting the 2013-2014. There is also no hard binding to the price of BitCoin. This makes “silver” cryptocurrency a good exchange asset or even an investment tool.
- Public leader. The face of the LiteCoin is Charlie Lee. He is the first to inform the audience about floods and changes and actively participates in the life of the LTC community. As the practice of ETH and Vitalik Buterin shows, the presence of such a leader plays an essential role for the cryptocurrency.
- The transaction speed. We talked about this above. It takes only 2.5 minutes to create a new block in the LTC network, and only two confirmations are required for transactions. This option allows you to conduct many operations simultaneously and determines the potential of LTC as a payment instrument.
- Level of protection. Due to the high transaction speed, the probability of duplicate attacks on the network decreases. And in the official LTC purse, each operation is carried out with a password.
LiteCoin Mining Hardware and Technologies
LiteCoin mining is carried out by the Scrypt algorithm. For each found block, the miners receive a reward of 25 LTC. This amount is halved every four years after seeing 840,000 blocks, and the next fee reduction will be in 2019. Currency generation takes no more than 150 seconds, which is four times faster than in BitCoin network.
Mining requires a significant amount of memory, so the most suitable for it – is modern graphics processors (GPU). Due to the fact that the complexity of mining of LiteCoin becomes higher, the extraction of this cryptocurrency on home computers has become impossible, for this purpose asic-miners are created. The manufacturers of Scrypt miners provide optimal hardware configurations for efficient block search by Scrypt algorithm.
The lower complexity of block extraction than in the BitCoin network which allows the use of less powerful hardware, and a stable increase in the currency rate attracts the miners. But the cost of Asic-miners jumped very much because of the growing demand on them, so miners are switching to LiteCoin cloud mining.
Pros of LiteCoin Cloud Mining
Cloud mining services provide rental capacity for LiteCoin mining. The miners are attracted by the following benefits of the services:
- the ability to mine LiteCoin on powerful equipment without investing large sums;
- no need to set up the equipment, maintain it and monitor the cooling systems;
- affordable electricity prices;
- the high profitability of mining;
- access to convenient statistics and forecast profitability tools.
You need to get an online wallet if you want to use LiteCoin cryptocurrency. This can be any multi-currency wallet that supports this currency or purse, which is designed only for LiteCoin. The “original” wallet can be downloaded from the official website. But remember, if you have registered and forgot the password to the purse, then you will not be able to restore it. Therefore, it is better to use online wallets, which, by the way, are more popular than stationary.
Prospects of LiteCoinThe prospects and further movements of the LiteCoin exchange rate are convincing enough. Many analysts believe that in the future the price for LiteCoin will be about the same as today’s price for Ethereum, which is three hundred dollars. This is a pretty bright prospect for LiteCoin, and it may well become a reality. Apparently, this cryptocurrency will remain in the leading positions on capitalization, just because it is well known and a lot of money already invested in it. So, LiteCoin eventually is an attractive currency for investments.
Profit to all!