What Is Litecoin LTC?
LTC Coin Price
Let’s use this analogy to get a quick understanding of Litecoin:
Bitcoin is to Gold.
As Litecoin is to Silver.
Litecoin enables a peer-to-peer currency with instant, near-zero cost payments to anyone in the world.
It’s said to be the day to day currency that anyone can use, anywhere in the world in order to make quick, easy transactions. Purchases such as, buying a daily cup of coffee or wiring money overseas without the added costs.
THE HISTORY OF LITECOIN CRYPTOCURRENCY
Litecoin was founded on October 17th, 2011 by Charlie Lee. He’s a former Google Employee and an instrumental part of the creation of Coinbase.
LTC was released via an open-source client on Github. This occurred as a fork from the original Bitcoin core, leading to a decreased block generation time, increased maximum number of coins, and a different hashing algorithm.
In November of 2013 Litecoin hit a $1 billion market cap, and as of 11/2017, it sits at coin #5 per coinmarketcap.com and $3.3 billion market cap being evaluated about $60 a coin.
THE PURPOSE OF LITECOIN (LTC):
Going back to the gold and silver analogy from above, you wouldn’t necessarily use Bitcoin to buy a cup of coffee because it will be slower and have higher fees. LTC is the perfect option for doing day to day purchases/sending money.
LTC was meant to be a lighter more functional cryptocurrency with lower fees, better block generation (at 2.5 seconds) and a simple use of the Litecoin wallet.
It currently rewards miners 25 LTC per block and every 4 years this halves, totaling the final amount that will ever exist at 84 million about 4 times as many as Bitcoin.
THE MAIN FEATURES OF LITECOIN
1. Litecoin Block Generation Rivals Bitcoin
LTC aims to have block generation every 2.5 seconds while Bitcoin takes about 10 minutes on average.
What this means is that the network needs less modification in the future in order to scale to the masses. This makes the whole process faster for merchants to get confirmation of transactions, while still being able to create larger transactions that take more time.
2. The Litecoin Proof Of Work Algorithm
Litecoin uses a unique POW algorithm which differs from Bitcoin.
This algorithm is called Scrypt and it uses a sequential memory-hard function requiring more limiting memory than an algorithm which isn’t memory hard.
In other words, Bitcoin has block sizes that require a consensus throughout all nodes and mining software, while LTC uses a method where it doesn’t need to use all nodes to verify a transaction.
3. The Litecoin Wallet Encryption
The LTC wallet uses an encryption method where someone can view transactions and the account balance of the wallet, but needs to login in order to actually spend them.
Essentially this feature is creating an extra firewall for the Litecoin wallet, creating protection from trojans (viruses that steal wallets) and also helping users make sure they want to send the money.
4. Continual Updates and Modifications
While this isn’t necessarily a main feature of Litecoin, Charlie Lee and the developers continually modify and improve its features.
In May 2017, Litecoin was the first of the top 5 coins to participate Segregated Witness (segwit).
And in the same month, LTC began using the lighting network which allowed for a transaction from Zurich to San Francisco in under one second.
Overall, the ability to keep growing and adapting will help with scale once cryptocurrency reaches mass adoption.
WHAT GCA THINKS OF LITECOIN
When it comes to cryptocurrency we love something that is quick and easy to use.
LTC has all of the benefits needed for an easy to use day-to-day currency that is both convenient and quick.
It’s something that we all hold at GCA and something that we definitely see scaling to mass appeal in the near term when it becomes a usable currency.
If you liked this review and want to help support the academy donate some Litecoin below!
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