HomeKNOWLEDGEREVIEW PROJECTWhat is Litecoin (LTC)? Difference Between Litecoin and Bitcoin (2020)

What is Litecoin (LTC)? Difference Between Litecoin and Bitcoin (2020)

What is Litecoin?

What is litecoin (LTC)? When it comes to cryptocurrencies, people often think of Bitcoin, a series of currencies with the largest value in the world to date.

But in recent years, in Vietnam in particular and in the world in general has emerged another cryptocurrency called Litecoin. If Bitcoin is likened to "gold", Litecoin is considered "silver".

So how is it that we so often forget to teach respect by respecting the children themselves? What is Litecoin? How is it different from Bitcoin? Let's Cryptocurrency Blog find out.

Litecoin (LTC) Overview

Litecoin (LTC) is the peer-to-peer currency of the Internet and is decentralized similar to Bitcoin. It is the first cryptocurrency to implement the SegWit protocol.

Charlie Lee, a former Googler, released Litecoin on October 7, 10 on the Github source code. His original goal was to create a version Bitcoin (BTC) "lighter.

The Litecoin network went live on October 13, 10. This is basically a fork of the Bitcoin Core client.

While Bitcoin is considered “Gold” and is a long-term store of value. Then Litecoin is considered “Silver” and is a medium of daily transactions with low fees.

Besides, thanks to the fact that Bitcoin uses the SHA256 encryption platform and Litecoin is more advanced with Scrypt, it allows miners to mine both Bitcoin and Litecoin at the same time without fear of system conflicts.

Some features of Litecoin

Although Litecoin is considered a clone of Bitcoin, they still have some new features:

Maximum supply

The maximum supply of LTC is 84 million coins, which is 4 times the supply of BTC. In theory, with this maximum supply, the LTC value would be 1/4 of the BTC value.

However, this is just a theory, and theory is often far from reality.

Transaction speed

A transaction in Litecoin is confirmed in about 2.5 minutes. While Bitcoin needs 10 minutes on average.

Transaction fee

The Skrypt algorithm allows transaction costs to be significantly reduced.

Block reward

Miners are rewarded in LTC for contributions. The halving event takes place every 840.000 blocks, roughly every 4 years. And with the latest Halving on August 06, 08, miners are now getting 2019 LTC per block.

Anonymous transaction

Since all transactions are processed on their respective blockchains, the Bitcoin, Ethereum, and Bitcoin Cash networks cannot afford anonymity.

In contrast, the Litecoin network has undergone a soft-fork and implemented the MimbleWimble bulletproof to bring anonymous transactions to its users.

However, this has resulted in higher transaction fees than in the beginning.

Mining Algorithm

Both Bitcoin and Litecoin use algorithms Proof-of-work. But Litecoin is more "democratic" when using cryptographic algorithms Skrypt while Bitcoin uses cryptographic algorithms SHA-256.

Skrypt allows less computation but uses more memory.

Proof-of-work

Atomic Swap

This is an interesting feature in the Litecoin network. You can understand it roughly like this: you have 1 BTC and want to exchange them for LTC, normally you have to go to the exchange and pay a fee to do it.

But with atomic swaps, if you have 1 BTC and someone else has a corresponding amount of LTC, you can swap without going through an exchange and without any fees.

Atomic swaps work using Hashed Timelock contracts.

Litecoin transaction speed

The average block mining speed in Litecoin is 2.5 minutes, while Bitcoin is 10 minutes.

Litecoin block time
Graph showing Litecoin's block time

But if the network is congested and block mining times are slow, the average wait time for transactions can fluctuate up to 29 minutes.

This brings many advantages to traders who need to make many small trades per day.

Litecoin traders can get two confirmations within 5 minutes. While a confirmation in Bitcoin takes at least 10 minutes.

How many LTC coins are generated per day?

Every 2.5 minutes, a Litecoin block is mined and 25 coins are generated. So there will be 14.400 LTC created every day.

Differences and Similarities Between Litecoin and Bitcoin

Compare LTC and BTC

Rate LTC

Rate LTC
LTC rate on February 13, 02

LTC is currently ranked 6th on CoinMarketCap, behind Bitcoin, Ethereum, XRP, Bitcoin Cash , and Bitcoin SV.

You can follow Litecoin exchange rate We update it daily in real time to keep up with the latest movements in the price of this coin.

Units of LTC

Like Bitcoin, Litecoin is also divided into 1 million units

0.001 mLTC (millicoins)

0.000001 µLTC (microcoins)

0.00000001 Minimum unit

Map of ATMs LTC

Map of ATMs LTC
Image from Coinatmradar

The team behind Litecoin

In 2011, Charlie Lee released Litecoin on GitHub.

Charlie Lee, the creator of LTC

From 2011-2016, Litecoin had no full-time developers. Initially, only Charlie Lee (the “father” of Litecoin) and Warren Togami (the lead developer) were associated with the Litecoin open source project.

In 2016, a developer with the alias “Shaolinfry” joined Litecoin.

In addition, there are a number of other contributors who run the community and track releases.

Litecoin Official Partner

Litecoin Partner

After 9 years of existence and development, Litecoin now has many official partners spread in many industries, typically:

  • Travala.com: 567,928 hotels in 210 countries with 82,311 destinations
  • Travelbybit.com: Book flights and hotels with cryptocurrency
  • BlockFi: offers the wealth management products that crypto investors need. All powered by blockchain technology

There are also a number of other partners in the e-commerce industry.

Is Litecoin Potentially Abused?

The possibility of being abused by criminals is not too new for the cryptocurrency industry. Especially anonymous coins like Litecoin.

Because of allowing users to send and receive money anonymously, LTC has become one of the ideal coins for criminals to use to launder money. So it can be said that anonymity is both beneficial and harmful.

However, it should be remembered that these cryptocurrency abusers only make up a small number of users.

Money laundering

 

Is Litecoin a legal currency?

Whether Litecoin is a legal currency or not depends on the laws of each country. In Vietnam, for example, cryptocurrencies are not banned by law, but they are not necessarily recognized, and are controversial.

Future of LTC

Litecoin Future

Although Litecoins have been around for quite some time and have experienced massive drops many times, they have never dropped out of the top 10 on CoinMarketCap.

Besides, you also don't need to worry about Litecoin flooding the market as well as Litecoin's value dropping. As only a total of 84 million coins can be mined.

Additionally, as of Q4 2019, the number of active wallet addresses on the Litecoin network housed more than 45 million wallets. Meanwhile, the number of daily active wallet addresses is 77.1 thousand wallets. That shows the level of usage of LTC is huge.

 

Instructions on how to mine LTC for newbies

Blogtienao has written a separate tutorial on this item, you can see details in the link below:

Some Risks You May Face When Becoming a Litecoin Miner

Becoming a Litecoin Miner, Should or Not?
Becoming a Litecoin Miner, Should or Not?

The following Blogtienao will list some of the risks you may face when becoming a miner:

  • Difficulty increased: As more and more miners join LTC mining, the difficulty will increase accordingly. This reduces your profits. For that, you need to make a realistic prediction of how much difficulty will increase in the near future.
  • Resell at low price: To get good yield, you have to mine with ASIC hardware. However, since this hardware can only be used for mining and is not retrofitted for other purposes, the resale value is quite low.
  • Consume more power: Mining is a process that consumes a lot of electricity. Therefore, cheap electricity price is a very important part in calculating profit.

 

Where to buy, sell and trade LTC?

Litecoin Exchange

Currently, LTC is being traded on many major exchanges. Here I can mention some notable names such as: OKEx, BitfinexHuobiBinanceBit-Z or  HitBTC,…

However, if you want to invest in LTC, I recommend you to choose the exchange Binance or Huobi. These are the 2 largest exchanges at the moment and have cheap transaction fees as well as fast transaction speeds.

In addition, you can also trade LTC with Vietnam Dong at some domestic exchanges such as: Vicuta, Coinhako, Remittan, T-Rex,…

Purchase Litecoin (LTC) on the Vicuta . exchange

To trade on Vicuta, you need to have:

  • Account on Vicuta
  • InternetBanking one of the banks VCB, ACB, TCB, VTB, SCB. It is best to use Techcombank for convenience.

Note: You also don't need to secure your Vicuta account because this is just a place to buy and sell, not store coins on the exchange, so losing your account is also reassuring because it won't affect your assets.

Step 1 : you click Click here to register nhé

Register for an account Vicuta

guide Vicuta

This is a detailed guide, you can follow it.

Step 2 : After registration, please log in and verify your email and phone number to increase the transaction limit. Identity verification is only necessary when you want to transact in bulk.

guide Vicuta

Step 3 : conduct buy Litecoin (LTC) on Vicuta

You are not in Section Purchase choose Litecoin (LTC) or go directly to this link: https://vicuta.com/buy/LTC

Buy LTC on Vicuta

  • Quantity: for example, if you want to buy 10 LTC, enter the number 10.
  • Address : Your Litecoin (LTC) address.
  • Bank: Should choose VCB or TCB or ACB and remember your bank account must have internetbanking
  • Account holder's name: the same name as you registered at Vicuta
  • Account number : your bank account number

Then mark I commit and click Confirm to go to the next step

Buy LTC on Vicuta

In the time period is min, please send the exact amount (13,889,949 vnđ) to the above bank account (0501000049232, PHAM MINH TU) with the transfer content as: TIV3M12D

You log in to your internetbanking account, make the correct transfer as required with the exact same account content as above, After the transfer is complete, press "Transfer Confirmation” and make a cup of coffee, wait for 15-30 minutes, LTC will come to your wallet.

Risks encountered when trading LTC

First, because LTCs are monetary in nature, their value is affected by supply and demand. However, according to the Litecoin community, this is a positive influence.

Second, digital currency is currently unregulated. This makes them a risky investment for some.

Finally, changes in government capital controls (here only China) could reduce demand.

Storage wallet 

About this item, Blogtienao has written a very detailed article, you can see it at the link below:

Conclusion

Hope Blogtienao has brought you really useful knowledge about LTC in the above article. Good luck with your investment!

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Virtual Currency Bloghttps://blogtienao.com/
Hi, I'm Hen Vai, Founder of Blogtienao (BTA), I'm very passionate about community, that's why blogtienao was born in 2017, hope the knowledge on BTA will help you.
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