What is Litecoin (LTC)?

Litecoin (LTC) is a peer-to-peer digital cryptocurrency and a payment system. Litecoin is a digital global network and people can use it to send, receive, and exchange payments. LTC currency is also based on blockchain technology just like Bitcoin. Decentralization, which means everyone, can use it without any bank or government controls over it. LTC was released on October 7, 2011, by Charlie Lee, a former Google employee and its software has very less restriction on its reusing due to an open-source software released under MIT/X11 license. According to Litecoin (LTC), the Litecoun blockchain is capable of handling a higher volume of transactions, unlike its counterpart Bitcoin. Litecoin could be used to buy and sell for traditional money and with multiple crypto exchange options globally.

Litecoin (LTC) can be considered a clone of Bitcoin (BTC) but it still differs from Bitcoin in many ways.

• Litecoin uses the Script algorithm along with its proof-of-work (PoW) concept. In contrast with Bitcoin’s SHA-256, the Script algorithm inhibits hardware scalability when performing its calculations, which requires a significant amount of memory.
• The Litecoin network processes each block every 2.5 minutes. Bitcoin takes 10 minutes for the same process. So, this makes Litecoin transactions much faster as compared to Bitcoin’s.

Scrypt is a password-based key derivation function (password-based KDF) and Litecoin uses these algorithms to make the transitions speed faster. Script originally named as ‘s-cript’, is pronounced as script and uses the SHA-256 algorithm for processing. Scrypt algorithm was developed in 2009 by Colin Percival to make the large scale custom attacks cost-effective, by requiring a large amount of memory. A simple version of the scrypt is also used by a number of cryptocurrencies as a proof-of-work (PoW) algorithm.

Operations of Litecoin (LTC) are independent of banks and government agencies due to the cryptographic property of the LTC currency called decentralization. As compared to other currencies, Litecoin has not any single administration. Litecoins are generated by mining procedures. Unlike traditional currencies, Litecoin supply is fixed and there will be 84 million litecoin (LTC) in the network. Every 2.5 minutes Litecoin generates and processes a block. Than once miners verify the block, it becomes part of the security chain and the next block is ready to enter the chain.

Litecoin (LTC) Mining

The mining concept of Litecoin is the same as Bitcoin’s mining process but differs in the reward system. The first miner, who successfully verifies a block, receives a reward of 50 LTC. Litecoin mining reward reduces with time and the process of halving will continue until the mining of 84,000,000 Litecoins.
There are advantages in adopting Litecoin (LTC) over Bitcoin (BTC) as it can handle more transactions in short block generation time. To process a transaction, it costs 1/1000 of an LTC regardless of its size.

Lightning Network

Based on the Bitcoin protocol, Lightning Network is a micropayment solution and it aims in enabling low-cost instant transactions and payments. The network was conceptualized by Joseph Poon and Thaddeus Dryja in 2015 in a Whitepaper. A customer and merchant both need to open a payment channel to operate off the Bitcoin blockchain and none of the transaction details are recorded on the blockchain. Since all the transactions are done independently from the Nakamoto consensus and with the payment channels, so both ends of the transaction don’t need to wait for the confirmation on transactions.

Professional traders say that trading Litecoin (LTC) could be more valuable than some other crypto mining. You can buy not only Litecoin but also use it with other global cryptocurrencies, for sale and exchange. There are many methods available for storing and trading Litecoin LTC but the mobile-friendly e-wallets are the easiest and instant way for the global crypto-business. The B4U e-wallet is one of the fast, secure, and ultimate wallets to start or precede digital asset profits. Download B4U Wallet Mobile App today to buy, sell, and exchange Litecoin and other multiple cryptocurrencies.