What is Litecoin?
Litecoin is a first generation peer-to-peer crypto currency from 2011, which enables very fast and very cheap transactions. Litecoin is one of the oldest crypto currencies after Bitcoin. Litecoin is a so-called fork, a separation from the Bitcoin blockchain. Many of these early crypto currencies 1.0. bring just like Litecoin only a few changes in contrast to Bitcoin. Nevertheless, Litecoin is one of the few coins that have established themselves from the beginning. What makes the Bitcoin clone so special?
Who created Litecoin?
It is assumed that Litecoin was originally released via an open source client on GitHub by Charlie Lee, a former Google employee, on October 7, 2011. It was a spin-off of the Bitcoin client application, mainly characterized by faster block generation, a higher total amount of coins, a modified hashing algorithm and a modified user interface.
When was Litecoin created?
Although Litecoin was released in October 2011, its financial history does not begin until November 2013. Originally, version 0.8.5.1 was released, which brought Litecoin a massive price increase over a very short period of time. At the beginning of December 2013 a new, improved version was launched, which reduced the transaction fees by a factor of 20 and increased the security and performance of the client and the network.
What makes Litecoin special?
Like so many first generation crypto currencies, Litecoin only slightly changed Bitcoin’s code, gave the coin a new name and a logo. Litecoin is often seen as crypto-silver, while Bitcoin represents crypto-gold. The essential three functionalities that differentiate Litecoin from Bitcoin are quickly explained:
Faster transaction confirmations are achieved over a shorter average block time of 2.5 minutes. Litecoin is 4x faster than Bitcoin in this respect.
The maximum number of Litecoins is set at 84 million. That is exactly 4x as much as with Bitcoin.
Mining algorithm Scrypt. Litecoin also uses Proof-of-Work (PoW), but the algorithm is programmed differently. Litecoin Mining (Scrypt) requires more memory than Bitcoin Mining(SHA-256), so Litecoins can often be profitably minined with fast graphics cards instead of highly specialized ASIC miners.
In addition to these core features, active further development at Litecoin is of particular interest. The development is faster and less political than at Bitcoin. SegWit was already activated on Litecoin in May 2017. This step was not as necessary for Litecoin as it was for Bitcoin, as the block size limit for Litecoin was far from being reached. Many advanced technologies connected to Segwit such as the Lightning-Network can now be tested live on Litecoin before they are implemented on Bitcoin.
How does Litecoin work?
Litecoin is an online network that can be used to carry out money transfers between two parties. It operates according to the peer-to-peer principle and is decentralised, which means that it cannot be controlled by a single authority or government.
This payment system does not use physical currencies such as dollars or euros, it uses its own currency, which is also called Litecoin (symbol: Ł or LTC). Therefore Litecoin is often classified as virtual or digital currency. Litecoins can be purchased with “traditional” currency and can also be used to pay for traditional currencies, goods or services.