Crypto-currencies of the world: Litecoin and its differences from Bitcoin. Alexander Sivtsov.
Today we will talk about the next crypto currency, which is the fifth largest in terms of capitalization among alternative digital currencies. The total value of the Liteсoins is about $ 13 billion.
Litecoin is a peer-to-peer payment system. Its creation was based on the source code of Bitcoin. Just like Bitcoin, Litecoin has an open source code, the payment network is also completely decentralized and has no control by any governing bodies.
Litecoins – History of creation
Litecoin was created by former collaborator Google Charles Lee in 2011 and already in April 2013 took the position as an alternative of Bitcoin. Initially, Charles Lee conceived Litecoin as a digital alternative to silver, which main purpose was equal to its value in the market. The peak of the growth of the crypto currency accounted for 2017. This year can truly be considered the year of the crypto-currency market, the capitalization of which in December was $ 620 billion, having demonstrated growth for the year by 35 times.
The main differences between Litecoin and Bitcoin
Litecoin is very similar to Bitcoin, since in both networks the data is recorded identically and both crypto-currencies have a limited emission, but there are differences.
- Unlike Bitcoin, the number of Litecoins is limited to 84 million, and not 21 million.
- The speed of formation of one data block in the Litecoin network is four times higher than the formation of the block in the Bitcoin network, against which the speed of the transaction in the network is also higher. The time of formation of a new block in the Litecoin network is approximately 2.5 minutes, while in the Bitcoin network the block is formed approximately in 10 minutes.
- The third difference is the processing speed of the data block in the Litecoin network, since the high generation rate reduces the risks of double spending.
Why did Litecoin lose more than 50% of the cost?
On December 20, the network reported that the founder of Litecoin, Charles Lee, had liquidated all of its crypto-currency balance and handed it over to the Litecoin Foundation. Lee himself explained his actions by wanting to avoid conflict of interests and does not want criticism in his direction, as a person who has a significant influence on the course of the crypto currency, while possessing a certain number of coins. As a result of this message on December 22, the price of Litecoin decreased to $ 176.00, while the maximum value of coins reached $ 372.00 on December 19.
Conclusion
To sum up, Litecoin does not significantly differ from Bitcoin, except for a higher network performance and more coins, which is an advantage of Litecoin for using crypto currency in conducting transactions.
Read also about the other crypto-currencies in the Trader’s Blog:
- Crypto currency of the world. Ethereum (etherium)
- Crypto-currencies of the world: Dash and its differences from Bitcoin.
- The future of crypto currencies and their popularity in the world.
Alexander Sivtsov