Litecoin is a peer-to-peer cryptocurrency and open source software project released under the MIT/X11 license. Inspired by and technically nearly identical to Bitcoin (BTC), Litecoin creation and transfer is based on an open source protocol and is not managed by any central authority.
Because of its similarity to Bitcoin, Litecoin is commonly seen as a direct competitor against Bitcoin, much like silver and gold to each other when placed on the market. The key differences between Litecoin and Bitcoin are in their quantity limit and rate of creation. While its network generates 84 million litecoins total over time, there is a 4x higher coin limit for bitcoin, which means that it would take significantly longer to generate a larger number of coins in the future. In terms of rate of creation, one block of litecoins is generated about every 2.5 minutes whereas a block in bitcoins is generated at 6-minute intervals. This faster generation rate speeds up transactions from several hours to just 10 minutes, without an increase in price since both currencies have been adjusted proportionately relative to their different rates of generation.
The Litecoin network went live on October 13, 2011 and the LTC currency was introduced by former Google engineer Charles Lee as an open source fork of Bitcoin with a decreased block generation time (2.5 minutes instead of 10), increased maximum number of coins and different hashing algorithm (Scrypt instead of SHA-256). Since then, however, there has been some confusion about the differences between Bitcoin and Litecoin due to their similarities. While each cryptocurrency can function without the other, this hasn’t stopped people from being confused over which cryptocurrency they are actually using at any given moment in time. To avoid these confusions, many have come to think that Litecoin is just another alternate version or “altcoin” of Bitcoin.
But by now, these two currencies have developed their own identities and are seen as different. Litecoin is less expensive than bitcoin so it has gained popularity with those who would like to purchase small amounts frequently without the higher fees that are typically associated with bitcoins. On the other hand, bitcoin transactions are faster since they are bigger blocks causing larger files to download, which attracts many merchants who commonly accept bitcoins for products offered online. Merchants will often use a payment service provider such as Coinbase or BitPay which will convert bitcoins into fiat currency instantly after checking out the transaction on its network. With this being said, both currencies have their pros and cons concerning purchasing power but in order not to confuse merchants interested in either currency, it is important to know the difference between them.
Litecoin can be seen as a complementary addition to bitcoin’s offering since it exhibits characteristics that are different from those of Bitcoin. It is commonly used for smaller purchases whereas Bitcoin is used for larger ones. Despite having similarities to other forms of money, Litecoins are quite unique and take pride in their differences since they have an increased rate of generation, many more coins left to create and distinctive features all their own. While there are some people who still confuse Litecoin with Bitcoin due to their similarities, these misconceptions have become increasingly uncommon over time as cryptocurrencies continue to develop into unique entities within themselves. For more information on Litecoin please visit its website at www.litecoin.org.
How do I Buy Litecoin?
If you’re looking for a guide on how to buy Litecoin, checkout the video guide below which explains everything.