Litecoin is one of the most successful and famous Bitcoin forks. This project was not historically the first, but its simplicity and advantages of use ensured the popularity of the coin in the crypto community.
The relatively inexpensive coin has become one of the most historically significant cryptocurrencies that have shaped the cryptocurrency market.
Features Of Litecoin
Since Litecoin is built on top of Bitcoin technology, the coins have a lot in common. The purpose of the coins is the same. They are both created as a means of payment. Moreover, the creators of the LTC initially positioned the coin as digital silver, an addition to Bitcoin digital gold.
There are not many differences between Litecoin and Bitcoin:
- Block formation technology. LTC is based on the Script algorithm.
- Block formation speed. It takes about 2.5 minutes to create a new block in the Litecoin system compared to 10 for Bitcoin.
- Stock of coins. The maximum possible amount of LTC is 84 million coins.
Reducing the block formation time gave a gain in transaction processing time. High speed of payment processing, in turn, reduces the waiting list. Any transactions, be it payment for goods or conversion of LTC to XLM, are faster than in the original network. No less important is the fact that the commissions on the platform are about 30 times less than on the Bitcoin network.
Litecoin gained popularity precisely due to the combination of efficiency and economic efficiency. When choosing a cryptocurrency for everyday use, many users will prefer a platform with lower fees. This is especially noticeable in developing countries with a low standard of living.
Training Network
Blockchain technology has become truly revolutionary. Exactly the same thing is happening with it now as with other revolutionary technologies. The rapid development of the industry inevitably reveals the imperfections of early networks and stimulates the search for new solutions.
In May 2017, Litecoin implemented two updates to the Lightning Network and Segregated Witness. Thanks to these innovations, it became possible to carry out several transactions per second.
After successful testing on the Litecoin network, Segregated Witness was added to the Bitcoin network. Litecoin has become a test network for its “big brother” and other cryptocurrencies. Every time a major update was needed, it was first tested on the Litecoin blockchain.
Now Litecoin is finishing testing the MimbleWimble protocol. The purpose of this protocol is to provide anonymity and high network scalability. The improvement in scalability is achieved by reducing the weight of the blockchain, and it will not be necessary to check the entire history to verify the validity of transactions. The feature will be available to mainnet users very soon. After that, the implementation of the protocol in the Bitcoin network will become a matter of not too distant time.
A test network, a sandbox network – this is exactly the role that Litecoin copes with best of all.
Using Litecoin
LTC is quite affordable and relatively inexpensive coin. Now the coin is trading at a price close to $70. This greatly simplifies its practical use as a settlement tool.
“Digital Silver” can be used as a long-term investment or intraday trading tool. The low price significantly simplifies entry into the market for novice investors.
Where To Get Litecoin
LTC is in the TOP-10 largest cryptocurrencies and is traded on almost all cryptocurrency exchanges. The coin is available for purchase with fiat currency and other digital coins. Please note that traditional exchanges require registration, and often account verification.
If you already have digital coins, it is not necessary to replenish the ranks of users of large exchanges. You can buy Litecoin without registration, using the instant exchange service. Technically, this is exactly the same as converting SHIB/ Binance coin and 300+ more coins.
LTC can be mined like other coins that are based on the Proof of Work algorithm. This path is more difficult and costly in all respects and is far from acceptable for everyone.