Litecoin came on board the cryptocurrency market, a few years after the introduction of the Bitcoin and it is built on a framework that is very similar to that of the Bitcoin. This cryptocurrency operates and holds the same ideals as the Bitcoin, and has today grown to become one of the most commonly traded cryptocurrencies. This coin was created by an ex-employee of Google, Charlie Lee, and launched to the cryptocurrency market in October 2011, barely 3 years after the launching of the pioneer cryptocurrency, the Bitcoin.
Decentralisation of control
Everyone loves to collect cash, whether it’s into your bank account or how to make money on Tropico 5. Like most cryptocurrencies, LiteCoin operates a decentralised processing system. This means that no one person or institution has full, final and finite control over the functioning of the entire process of its computation and valuation. The process – which uses the blockchain – that controls the entire running is easily accessible and readily available to all users all over the world.
Most decentralised cryptocurrencies are created through a complex process of mathematical algorithms and calculations. This is referred to as crypto mining. LiteCoin’s mining process is a bit more complex than that of the Bitcoin and a couple of altcoins. LiteCoin has a limit of 84 billion. Suffice this to say that not more than 84 billion Litecoins can and will be produced, bearing the current dynamics and protocol. With the increase and continuous production of the LiteCoin, and its drawing nearer to the 84 billion thresholds, a scarcity will emanate from this inability to produce more coins. This will cause the value of the LiteCoin to increase tremendously.
Unlike Bitcoin and a large number of altcoins which are processed at intervals of ten minutes, LiteCoin has a much faster processing speed. Beating the standard processing speed by four times, the LiteCoin boasts of a processing speed of 2.5 minutes per interval. This is one of the reasons why LiteCoin is cheaper and more patronized by traders and investors in the crypto and digital finance markets.
Almost all cryptocurrency mining make use of sets of very complex algorithms. A typical example of these complex algorithms is the SHA-256 algorithm that is used by the Bitcoin. LiteCoin has brought a new dimension to the crypto mining algorithm. It has come to demystify the hitherto impossibly complex process. Using the ‘Scrypt Algorithm’ instead, LiteCoin can lighten the workload and achieve easier computation and consequently improved the speed of processing and operation.
Store of value
The LTC and other cryptocurrencies were created and intended for digital financial transactions, but over the years, they have been utilized as a store of value by a large number of investors and traders. LiteCoin is being traded like stocks and other assets. Launched into the market at a value of $4, the value of the LiteCoin skyrocketed to an all-time high of 371 Dollar in December of 2017. The asset is currently holding a value of around $100. LiteCoin has gained a whole lot of popularity and patronage because of its admirable stunning and distinct features. Although it is not as popular as Bitcoin, it is one of the top choice of a lot of people when they are opting for a vast variety of cryptocurrencies and digital assets.
Comparison to Bitcoin
Litecoin is based on a very similar architecture to Bitcoin, it is based on a mining network, and is transferred though a series of blocks. I personally feel that Litecoin is a more futureproof currency, as the sizes of its blocks are 10MB, whereas a Bitcoin block is 2.5MB. What this means is that, essentially, a tranfer of the currency is four times faster. But, market fluctuation aside, the question of this article still needs to be answered, and my personal opinion is that what we are seeing in the crypto world is a mass culling of crytpocurrncies. Centra, SONM and Bitconnect are notable examples of cryptocurrencies crashing, and unfortuantely this trend will only continue. There will only be a few, big cryptocurrencies left, Bitcoin, Ethereum and EOS are likely to survive, but litecoin is in a position where it could fall into either of the aforementioned groups. Personally I would avoid Litecoin, and EOS would be a better investment overall.