Many people may recognize Bitcoin as being called "digital gold", but did you know that there is also a “digital silver”? That's what Litecoin was commonly known for its extreme popularity. Exactly why, as well as how Litecoin is different from other cryptocurrencies, read on.
The main idea of LTC
Litecoin was based on Bitcoin, and was intended to address some of the issues associated with the first cryptocurrency. It's essentially a relative of Bitcoin that has faster transactions while still maintaining the open source principle.
Both cryptocurrencies follow the Proof-of-work (POW) model. A brief fun fact: this model was originally invented to address the issue of spam in our email. Now it's actively employed in the cryptocurrency field. POW is a cryptographic algorithm used by the blockchain to incorporate a new block and authenticate transactions.
One beneficial aspect of Litecoin is the speed of creating a block - only 2.5 minutes is needed. To get a comparison, Bitcoin will take 10 minutes. What's the importance of this?
The fundamental concept of LTC was to create a cryptocurrency that would facilitate daily transactions. That is, you can go to the store and buy an energy drink with a bun, all the LTC payment options are available to you, without having to create a queue. Despite the fact that BTC and LTC utilize the same protocol, the blockchain of Litecoin is different. It's more likely to be accessed by potential miners: any computer can create new coins. In the course of Bitcoin, the process of mining digital currency requires expensive computers known as ASICs.
Despite the fact that LTC is derived from accessibility and efficiency, it has not been popularized outside the crypto community. Additionally, it is consistently ranked in the top 20 cryptocurrencies by total market capitalization.
History of LTC creation
In order to understand this cryptocurrency better, you can explore the creator's background.
Charlie Lee is a graduate of MIT (Massachusetts Institute of Technology), he previously worked for Google, he was a scientist, and he was passionate about cryptocurrency.
"I believe that cryptocurrency will absorb fiat and become a reserve currency", he wrote on Twitter.
He also initiated the creation of his own digital assets, because LTC was released in 2011. He intended to create a cryptocurrency that would "complement" Bitcoin. In 2013, he took over the position of Development director at Coinbase (the greatest American cryptocurrency exchange), which increased the popularity of LTC. He was similar to Elon Musk in that he was criticized for tweets that affect the market. Due to the accusation of a conflict of interest, Charlie sold all of his Litecoins. Not everyone appreciated the act. Some said it was considered a thoughtful move, because LTC was sold when the cryptocurrency reached its highest point.
The main advantages and disadvantages of Litecoin
Advantages:
+ Cool platform for updates: LTC can be tested first before innovating on BTC;
+ Transaction processing and confirmation times are faster;
+ Low fees.
Disadvantages:
- It is very popular on the Darknet due to its high level of anonymity.
Where to buy LTC?
Like other altcoins, Litecoin can be purchased on exchanges. One of the fastest and most convenient options is the Kolo crypto platform. If you decide to purchase, please click the link and see how easy and affordable cryptocurrency is.
