- Litecoin, a prominent Cryptocurrency, has made it conducive for individuals to run their finances.
- The Open Source Global Payment Network technology and ‘S-crypt’ Algorithm ensure decentralization in Litecoin effectively.
Formed in 2011, Litecoin is a known player in the Crypto World. It was created by an Alumni of the Massachusetts Institute of Technology and a former Google Employee ‘Charlie Lee’. Helmed as the spinoff of ‘Bitcoin,’ Litecoin was created to eradicate the Developer’s concern about Bitcoin getting centralized. However, later, it diversified its path into becoming a mining coin and a peer-to-peer payment system.
Technological flair behind Litecoin
Litecoin is officially the second oldest cryptocurrency in the world, and Bitcoin inspired it. Formed two years after it, eventually sharing some similar features with its predecessor. However, the Algorithms used in Litecoin were distinct from Bitcoin.
Lee, the founder of Litecoin, instigated and developed a new algorithm for Litecoin known as S-crypt. This simple Algorithm drove fast transactions. Bitcoin and Litecoin used the ‘PoW’ Proof of Work consensus mechanism to authorize the transactions. Also, both were caused by the Open Source Global payment network technology. Still, there was a vast difference between them because of the Algorithm. Litecoin was majorly ahead of Bitcoin in transaction or processing speed and Supply of coins.
Litecoin is four times faster than Bitcoin. Apart from the ‘PoW’ mechanism, it uses cryptographic SHA-256 for hashing or finding the hash values, just like Bitcoin. However, Lee’s patented Algorithm ‘S-crypt’ was still quicker and faster than SHA-256. The short procession speed of Litecoin can be justified by the fact that it can do 54 Transactions per second, along with 2.5 minutes of transactional finality. This means that new blocks on Litecoin can be created in 2.5 minutes, which is surprisingly faster than Bitcoin, which could take 10 minutes to an hour for the same.
More on Litecoin vs. Bitcoin
Technological similarities and dissimilarities have resulted in two contrasting Crypto Coins. Litecoin was created, claiming itself to be a better version of Bitcoin. But did it manage to outdo Bitcoin in every aspect? Probably not
It is noted that Bitcoin’s supply is capped at 21 million while Litecoin is at 84 million. Whenever a new block is added to Litecoin’s blockchain, Miner is rewarded with new LTCs. During the Litecoin launch, the LTC reward was fixed at 50 LTC, which was halved every four, and now it is gradually down to 12.5 LTC, still higher than Bitcoin 6.5 BTC.
However, even after all the perks of Litecoin over Bitcoin, a Bitcoin can still be worth more. While looking at more value per coin, Bitcoin has a sureshot upper hand. Bitcoin is still more renowned and Popular than Litecoin because of its market capitalization. It has the potential to be mined by big Mining firms and Pools, unlike Litecoins.
Bitcoin and Litecoins are Layer 1 Blockchain built on Open Source Global Payment Network. The issue of decentralization not being ensured to the fullest in Bitcoin vanished with the launch of Lithium and its virtuous Algorithm ‘S-crypt.’ Technological enhancement has to be the critical factor behind this innovation.