Litecoin is the 4th most popular cryptocurrency after Bitcoin, Ethereum, and Ripple. The Cryptocurrency has gained more popularity as the blockchain technology gets appreciation in the society. Here is a complete review of Litecoin.
- 1 What is Litecoin? What are the core goals?
- 2 How does Litecoin work?
- 3 The main features of Litecoin
- 4 Benefits of using Litecoin
- 5 Cons of using Litecoin
- 6 Litecoin Price
- 7 Where to Buy and Sell Litecoin in Australia?
- 8 Conclusion
What is Litecoin? What are the core goals?
Litecoin is a cryptocurrency that works in the same manner like Bitcoin or Ethereum. As a peer-to-peer digital currency, it allows instant payment to people in the network all over the world at zero cost. Notably, Litecoin was founded several years after Bitcoin, and it is aimed at ensuring that the security of all transactions is guaranteed. It also targets providing a platform for sending and receiving payments at the lowest possible charges.
The cryptocurrency was discovered by Charlie Lee, a former employee at Google with a lot of interest in Blockchain technology. Just like Bitcoin, the Litecoin is secured using mathematics that makes people control their finances without relying on conventional banking infrastructure. Lee always insists that the blockchain does not target competing with other Blockchains such as Bitcoin and Ethereum. Rather, he sees it as a complementary network.
Though Litecoin was established in 2011, it was not until 2013 when it gained a lot of publicity. In November 2013, Litecoin value grew by over 100%. Litecoin had placed a cap of 41 billion by the close of 2013. This market cap was raised to the current target of more than $2 billion for the year 2017. The current price of Litecoin token is between $30 and $40.
How does Litecoin work?
To start using Litecoin, you start by signing up on their website and downloading Litecoin wallet. Litecoins are created through mining that includes multiple transactions. Unlike the fiat currencies that are controlled by central authorities which determine the quantities to print, Litecoin supply is fixed.
Every 2.5 minutes, the Litecoin system generates a ledger (block) entry throughout the globe. The new block is then verified via mining software visible to all miners on the network. After the verification process, the block enters the chain that records and stores all transactions.
Users in the network get rewarded for being the first to verify the transaction after it gets released. The first miner to verify a transaction was rewarded with 50 Litecoins (when the cryptocurrency started) that was equivalent to about USD 100. Note that the Litecoins awarded for such confirmations keeps going down at regular intervals until all the coins are mined.
Having seen the common flaws of other cryptocurrencies, Lee moved a step ahead to implement the Scrypt algorithm in the Litecoin Proof-of-Work model to enhance the process of data mining. Scrypt makes it possible to mine the blockchain even with other currencies to increase the value of mining and attracting more users. This has raised the popularity of Litecoin which does not show any sign of slowing down.
The main features of Litecoin
Litecoin utilizes Scrypt on its Proof-of-Work system. This is a special sequential memory-hard functionality that requires more memory compared to the algorithm that is not memory-hard. What this means is that users need more memory to operate on the blockchain.
Open Source Software
Just like other cryptocurrencies in the world today, Litecoin operates as open software. This means that developers and users are free to run and even modify different versions of the software. Because of its transparent release system, Litecoin facilitates independent binaries verification.
This is a process used by Litecoin to increase the size of a block in the platform by eliminating some signatures from transactions. By removing the signatures, some space is created to include additional transactions
Widely Available Resources
There are more resources that support Litecoin than any other cryptocurrency in the market today. Whether you are new or want to improve operations at Litecoin, you can get related info via GitHub, Litecoin block Explorer charts, and the Litecoin Wiki.
These are very crucial because they serve as the motivation to those joining the platform. Miners are rewarded with 25 new Litecoins when they verify new blocks (latest rewards by 2017). The amount halves every 4 years.
Litecoim allows users to secure their wallet transactions and even follow their transactions using its digital wallet. The wallets are highly encrypted and will require multiple authentications for users to make payment or do anything on the blockchain.
Benefits of using Litecoin
- The transaction fee in Litecoin blockchain is very low. You can even make transactions for free.
- Unlike other cryptocurrency blockchains, Litecoin generates new blocks relatively faster which means higher returns for miners and users.
- The system uses a highly decentralized system and latest security features that help to guarantee users of utmost security and anonymity.
- Unlike other Cryptocurrencies that work with a strict number of coins, it is different with Litecoin. A total of 84 million coins Litecoins will be released in the currency’s lifetime to help strike the right balance between too many and too few coins and devaluing them.
Cons of using Litecoin
It utilizes Scrypt on the Proof-of-Work algorithm that requires more memory. This means that people with standard computers might be unable to join the blockchain. In most cases, this may require buying new systems that raise the overall cost.
Where to Buy and Sell Litecoin in Australia?
Crypto Currency for Fun recommends buying Litecoin at CoinSpot. CoinSpot is a multi cryptocurrency wallet with built-in trading features. Users can store many coins, including Litecoin and they offer Instant Delivery or your coins right into your account.
Though Litecoin struggled in its early years, it has proven its worth by sustaining the system and delivering on the core mission of zero transaction fees. Its system has also proved that it is a unique force to reckon with because of the huge potential. As cryptocurrencies gain acceptance in society, Litecoin is likely to emerge as the ultimate currency of choice and even surpass the current leaders.