Litecoin: What It is, How It Works, and Litecoin vs Bitcoin

Additionally, Litecoin has value for micropayments and is integrating features like smart contracts and the MimbleWimble upgrade to enhance its usability and privacy. Overall, Litecoin aims to provide a decentralised and secure payment solution with low fees and fast confirmations. In 2020, the Litecoin https://www.tokenexus.com/ PoS network was launched, a unique take on the Bitcoin codebase, with significant performance and consensus enhancements. Validators staking LTCP must stake matured coins because it is a proof-of-stake system. Additionally, the coins to be staked must be in address/transaction types that are compatible.

Litecoin has a much smaller market capacity because Bitcoin has a smaller supply and greater demand. The number of created Litecoin awards every block is halved during a Litecoin halving event. Litecoin halving, which takes place about every four years, maintains the currency’s purchasing power since it is a scarce asset with 84 million coins in circulation.

Litecoin (LTC): What It Is, How It Works, vs. Bitcoin

Learn about Litecoin, the Bitcoin spin-off aimed at solving Bitcoin’s scalability issues. If you plan to buy Litecoin from exchanges like Coinbase or Binance rather than mining it, you need to set up an account with the exchange of your choice. Security, fees and ease of use are the various metrics you can What is Litecoin gauge before choosing an exchange. ASIC mining machines in which mining software is pre-installed can be used to mine Litecoin. On the contrary, if you’re mining using a central processing unit (CPU) or graphical processing unit (GPU), you’ll have to pick your own program while keeping security in mind.

No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. Because of the high demand, you can find Litecoin in almost every exchange platform that offers trading with fiat currency. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author does not own Bitcoin or Litecoin.

How Litecoin Is Mined

Additionally, the effect of halving events is more pronounced for Bitcoin, because of the asset’s dominance, hence BTC halving receives more attention. Utilising blockchain technology, litecoin can be used to transfer funds directly between individuals or businesses. This ensures that a public ledger of all transactions is recorded, and allows the currency to operate a decentralised payment system free from government control or censorship. The Litecoin network was created on the 7th October 2011 by Charlie Lee with the intent to create a cryptocurrency that offers its users fast small transactions that can be used on a daily basis. As mentioned in the beginning Litecoin’s blockchain network was copied from Bitcoin and then heavily modified. It is currently the #4 mineable crypto coin in the world and it seems that it will not stop gaining popularity.

• It uses blockchain technology to record a decentralised, public ledger of all transactions.
• Its compact sizing with high-performance potential makes it great for gamers, content creators, and enthusiasts who seek a small yet capable system.
• From the get-go, without any additional tech layers added on top of the Litecoin blockchain, it’s a faster cryptocurrency to transact than Bitcoin, and it does so more cheaply.
• Bitcoin has 21 million coins available, while litecoin has 84 million available – four times more than bitcoin.

Litecoin uses a consensus model called Proof-of-Work, or PoW for short. Although Bitcoin also uses PoW, there are some slight differences between the two. A soft fork is when an upgrade is made to a blockchain, but the new block rules are still recognized by the older version. First, we will give you some background information about the Litecoin blockchain, and why it was created. This means you only need to deposit a percentage of the full value of a trade in order to open a position. You won’t have to tie up all your capital in one go by buying litecoin outright, but can instead use an initial deposit to get exposure to larger amounts.

Where to Buy Litecoin

While you might not see Litecoin (LTC) in headlines nearly as often as Bitcoin (BTC), it’s still one of the most popular cryptocurrencies. If you’re using a decentralized exchange like Kucoin or Crypto.com, you connect your wallet to the exchange and go through the “know your customer (or client)” registration process. You can sell your Litecoin on the same exchanges where you can purchase it. However, selling your crypto on a centralized exchange is different than selling it on a decentralized one.

Litecoin mining operations aren’t something you’ll typically see running on a computer out of someone’s living room. Solving hashes requires immense computing power, which requires significant energy and space. Both are open-source projects that use proof of work to verify transactions.