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Litecoin (LTC) guide
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What is Litecoin (LTC) - Simple Explanation for Beginners

  • George Shnurenko
    Litecoin (LTC) guide

    This well-known cryptopcurrency with the acronym LTC has become one of the most popular digital coins based on peer-to-peer system.

What is Litecoin (LTC) - Simple Explanation for Beginners
Cover image via u.today

This well-known cryptopcurrency with the acronym LTC has become one of the most popular digital coins based on peer-to-peer system. Entirely decentralized open-source network under MIT/X11 license allows everyone easy mining and coins transfer. The cryptocurrency was inspired by Bitcoin and created in order to improve BTC’s shortcomings. It has no central authority and, being BTC fork, features 4 times faster block generation rate - 2.5 minutes against BTC’s 4 minutes: “lite-” the name talks!

Litecoin Main Features

But not only higher speed makes difference between Litecoin and Bitcoin. When mining LTC the adaptive cryptographic key generation function (scrypt) for primary hashing applies. For Bitcoin it is SHA-256, and Litecoin uses the special proof-to-work algorithm competitive to Bitcoin.

Litecoin’s proof-to-work scheme is based on scrypt adds algorithms that work more intensively with memory, new energy efficient graphics processors have been able to enforce the hashing of the network. A transparent process facilitates independent verification of binary files and their corresponding source code.

The operation is fully confirmed only after 6 blocks since confirming after one block mining the network can be vulnerable. Due to this delay, intruders are out of topic: the network would require accumulating at least 10% of the network processing capacity. In 2009 Colin Percival of Tarsnap Inc. developed this scrypt that shows the contrast with Bitcoin’s SHA-256d. Inhibiting the hardware scalability LTC calculation requires a plenty of memory.

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The hardware that could be adopted for any purpose turns to be not reasonable to “collaborate” with Litecoin. The need to develop ASICs is completely eliminated due to scrypt use. Litecoin follows the policy of decentralization in mining. A decentralized currency still remains so valuable and resilient! The 2.5 minute creation of a new block is one more important feature. It is 4 times faster than the BTC transaction confirming (when waiting for a couple of hours is often recommended as reasonable security measure). LTC users can enjoy faster access to their earnings especially when they suffer with the lack of time.

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Other parameters of Bitcoin are the same in Litecoin. We mean the number of years between block reward halving events. The number of blocks between difficulty changes is the same too. As for summer 2017, Litecoin miners are currently being awarded with 25 new Litecoins per block. This amount would be halved approximately every 4 years (or every 840,000 blocks). The total emission is expected to be 84 million coins - 4 times more than Bitcoin units of currency.

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About the author

George Shnurenko is a Bitcoin and cryptocurrency enthusiast, financial analyst and writer. He's majoring in history but he believes that the digital currency which has taken the world by storm will bring about change to all us humans. 

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📰 News
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54% of Richest Binance Users Keep Their Portfolio Between 1-10 Coins

  • Vladislav Sopov
    📰 News

    New research reveals that the richest institutional and VIP clients avoid portfolio diversity, use USDT, and still believe in Bitcoin.

54% of Richest Binance Users Keep Their Portfolio Between 1-10 Coins
Cover image via 123rf.com

Binance Research recently published their second Institutional Insights Report, highlighting the structure of the investments, trading strategies, and approach to stablecoins. The report analyzed the positions of 76 participants speaking English & Mandarin Chinese, primarily from investment firms, funds, and institutions.

Fat Cats Go 'All-In'

One of the most interesting outcomes from the recent report is the structure of investment portfolios held by VIP and institutional clients. It was disclosed that 54% of respondents kept their cryptoasset portfolio between 1-10 coins. While the majority invested in a broad range of asset classes such as equities, currencies, fixed-income products, real estate, and commodities (including gold), 35% of respondents were crypto-focused with more than 80% allocated to crypto assets.

Thus, we can see that one in three major investors is highly "crypto-focused". New classes of rich people, whose portfolios depend on the volatility and unpredictability of crypto market, are being formed right now.

Positive Sign for BTC Price?

Obviously, the question about their approach to Bitcoin (BTC) and stablecoins were also raised within the framework of their research. It came as no surprise that the rich still believe in BTC. Institutional and VIP clients are expecting BTC to maintain its market dominance (69%) through the end of 2019. Binance Research added that this result "echoes their fear of the altcoin market, losing any interest from retail participants".

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Among the stablecoins, USDT remained the most widely utilized (40%) because it offers greater liquidity and higher market capitalization than its peers. The report also found that BUSD and USDC were less popular from the rest of the pack.

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About the author

 Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockhain. Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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