Before understanding about Litecoin and its exponential increase, I’d like to inform you about the term “Altcoin.” As its name tries to provide away (alt + coin), altcoins are the alternative digital coins that mushroomed at the scene after Bitcoin’s achievement. This changed into inevitable. A remarkable characteristic of all the altcoins is that they are attempting to pose themselves as a better choice with greater capabilities.
The most popular altcoins are Litecoin, Peercoin, Ripple, Ethereum, dash, and so forth. In this article, I’ll let you know about Litecoin and its incredible growth in 2017. But, before moving ahead, don’t forget to check out our coverage on different bitcoin alternatives:
- Bitcoin Cash
- Bitcoin Gold
What is Litecoin?
With Bitcoin’s price stealing the highlight with record-breaking heights each day, the alternative cryptocurrencieshave found themselves inside the shadows. but, that doesn’t mean they’re suffering. Litecoin, the fourth largest cryptocurrency through market capitalization, has crossed $340 mark for the first time to attain an all-
time high; currently, it’s buying and selling at ~$309.
Litecoin, frequently called Bitcoin’s younger brother, came into the scene in 2011. Charlie Lee, the founder of Litecoin, is a former Googler. He currently works as the Director of Engineering at Coinbase. This decentralized altcoin uses a blockchain to maintain a public ledger of transactions.
Bitcoin vs Litecoin? What’s the difference?
Talking about the fundamental variations among Bitcoin and Litecoin, the transaction speed plays a major role. Altcoin blocks may be generated 4x faster in comparison to Bitcoin, so a transaction may be confirmed lots quicker. It become the first altcoin to provide you with such main distinction in speed. This characteristic additionally allows Litecoin to handle more transaction volumes. the overall number of Litecoins that can be mined is 84 million; Bitcoin’s total range is 21 million.
Another Bitcoin vs Litecoin difference is the use of scrypt algorithm. even as scrypt uses SHA-256 algorithm, the calculations carried out in scrypt are more serialized and they prefer excessive-speed RAM in preference to raw-processing power, Coindesk states.
Because of this change is mining protocol, the miners that use specialised hardware to mine Bitcoin can’t use the same hardware to mine Litecoin. to a point, this has kept large players faraway from Litecoin, making its mining relatively easier.
What’s the secret of its growth?
Over the last 5 days, Litecoin’s rate has witnessed 3-4 times growth. This rise of Litecoin and other virtual currencies may be attributed to Bitcoin as properly. Simply these days, we witnessed the release of Bitcoin futures on the Chicago Board alternatives exchange. quicker transaction speed and a lower rate is a plus point, making it most appropriate for adoption in e-commerce and online payment systems.
This urge amongst traders to trade in Litecoin also can be because of the upcoming bursting of Bitcoin bubble, which is making them look for different alternatives.
Meanwhile, I’ll end this article with the modern day tweet from Charlie Lee and advocate you to examine the whole thread carefully to make a smart choice: