Litecoin is a cryptocurrency created in 2011, based on blockchain technology. LTC is an open source project based on bitcoin’s source code, intended as a “lighter” version of BTC. The project’s transactions are validated and joined into blocks using the Proof of Work consensus algorithm (PoW). This allows you to dig for new Litecoin using excavators. This cryptocurrency’s rate has always been quite high, which means that the coin is valuable and consequently very popular.
A bit of history – does Litecoin value depend on technology?
This digital currency was designed and launched by Charlie Lee. Litecoin’s creator is a computer scientist from the USA who graduated from the Massachusetts Institute of Technology and later worked for the technological giant – Google. Lee has been known to work on such projects as the Chrome.OS operating system and the YouTube mobile application. He was also the technical executive of USA’s largest cryptocurrency exchange – Coinbase. Since 2017, he’s the CEO of the Litecoin Foundation.
From Fairbix to Litecoin – learning from past mistakes
Initially, Charlie Lee was working on the Fairbix cryptocurrency. Even though he managed to launch the coin, it definitely had some imperfections and could be easily hacked. What’s more, Lee mined many coins for himself before the official launch of the Fairbix network. These two aspects quickly ruined the cryptocurrency’s reputation and caused the project’s downfall. Lee’s next work, Litecoin, was much more polished. The project’s rate and functionality were high from the very beginning, which meant great future Litecoin predictions.
What is Litecoin?
On the 11th of October 2011, Charlie Lee confirmed the first ever LTC currency block and dug up the first coins. During the same month, he allowed unlimited public access to the cryptocurrency’s source code. The coin almost immediately got its name of “digital silver”. This was a direct analogy to bitcoin which was referred to as “digital gold”. LTC is a deflation coin, which means that its supply is limited to 84 million units. It also creates a certain (limited) level of privacy and is fully decentralized.
Litecoin vs Bitcoin
The Litecoin blockchain offers more bandwidth than its sibling network – bitcoin. This simply means that it allows you to perform more transactions per second. What’s more, the transfer costs of LTC are smaller than that of BTC. Bitcoin’s transaction cost can reach up to a couple USD, while Litecoin offers the same services for just a few cents.
Litecoin mining and risks
The LTC source code is based on bitcoin’s code. But the hashing function used to create the transaction block hash is different in the LTC network. Charlie Lee used the Scrypt algorithm from Fairbix. This feature is also present in the dogecoin blockchain. Scrypt is an algorithm which requires large RAM resources in its nodal devices, i.e. excavators. That’s why the LTC was being mined mostly on machines using the computing power of central processors or GPUs, for a long time.
How is Litecoin usually mined?
Those devices have very little computing power, when compared to the currently used ASIC excavators made to perform just one task type. The most popular ASIC excavator for Litecoin mining is currently the Antminer L3++, with a hashrate of about 600 Mh/s.
Computer performance vs risks
We didn’t mention the Litecoin network’s computer performance without reason. Litecoin value also depends on the joined hashrate of all nodes. Therefore, the more computing power, the safer and more trustworthy the network.
This aspect is directly linked to how much Litecoin is worth. When the coin’s hashrate is low, someone could use their excavators to control 51% of the network’s power which is necessary to validate the block transactions.
The future of Litecoin – is it safe to use?
This trick allows you to quickly find the hash of a new block and create a hidden branch of the chain, which with time will become longer applicable for everyone. Before that happens, the perpetrators will be able to sell the cryptocurrency on the old fork which won’t be visible on the new fork.
When their new chain replaces the old one, the cybercriminals will have sold Litecoin and earned traditional money. In this case, the loss would have been incurred by the cryptocurrency buyer. This type of attack is called double spending. The Litecoin network is protected against this kind of attack by its large hashrate. It doesn’t allow any one entity or large group to control 51% of the network.
How to choose your Litecoin wallet?
Litecoin is a coin which you may use with many different wallets. The most popular Litecoin wallet is an application installed on a computer or mobile device. Here are some examples of such apps:
- Litecoin Core – the basic Litecoin wallet which can be installed on your computer;
- Litewallet – a smartphone and tablet application for the Android system;
- Trust Wallet – a multiwallet for mobile devices operating on both Android and iOS.
LTC can also be managed from hardware wallets which are simply small electronic devices. Here are some examples:
- SafePal S1;
- D’CENT Biometric Wallet;
- Trezor One;
- Ledger Nano X.
How to buy Litecoin? How much is Litecoin worth?
Litecoin’s value was very unstable during the period between fall 2020 and the summer of 2021. It was first available for barely 25 USD, later reaching sums of about 360 USD. Right now you would have to pay more than a hundred dollars to buy one Litecoin. Are you wondering where to buy Litecoin?
It’s best to buy Litecoin on secure cryptocurrency exchanges, of which there are currently more than a hundred. Here are just a few of the more popular ones:
These platforms allow you to trade traditional currency and Litecoin.
How to buy Litecoin on exchanges?
You always have to start by setting up your account, which in most cases is free. You usually have to fill in your email address and create a safe password. The account should be active after you confirm your email. In most cases, you have to verify your personal information if you want to trade on an exchange. This is connected to money laundering and financial terrorism prevention laws.
After you verify your account, you can transfer the desired amount of fiat currency onto your exchange account and start buying Litecoin. If you wish to find out more about how to buy Litecoin on various exchanges, you should read their individual guides on currency trade.
Litecoin is certainly one of the more interesting alternatives of bitcoin – both due to its functionality and investment possibilities. The future of Litecoin is looking good, since it allows fast transactions at a low cost. And all of that while protecting your privacy and funds!