What is the Litecoin token? Usage, Benefits, mining, price prediction and halving.

Litecoin token guide >> Source: Pixabay
Litecoin token guide >> Source: Pixabay

The second Litecoin (LTC) halving occurred today, August 5, when the total amount of coins expected in circulation hit the 75 percent threshold. Litecoin has risen to the fourth greatest market cap today, slightly ahead of Bitcoin Cash (BCH), with a maximum upside of 14.60 percent, which is positive but not enough, according to analysts. Now that the event has past, investors should maintain their interest in trading this cryptocurrency.

Not enough enthusiasm

The first Litecoin halving took place four years ago. Since that time, its value has climbed by more than 20 times, allowing its owners to earn substantial long-term returns. The hash rate explosion, on the other hand, is pretty amazing; it has risen 360 times since the previous halving, implying a large yearly gain in security.

Eric Turner, director of research at blockchain analytics firm Messari, said:

“ During this rather bearish market, many traders viewed the Litecoin halving as a good fundamental investment and it became in high demand. Now that the halving is here, some investors are starting to exit the market. The event itself is not as positive a catalyst as many expected”

It appears that the fears were unfounded and that Litecoin developer Charlie Lee was correct when he predicted that a few miners would shut down their computers and transfer to other cryptocurrencies. He mentioned Litecoin’s possible challenges, saying:

“But after a few days, the mining difficulty will readjust and everything will go back to normal.”

Big upheaval on the side of the miners

Investors always keep a careful eye on halvings since the ensuing decrease in mining income impacts profitability and might cause a price drop. Although halvings are meant to push up the price of the relevant cryptocurrency according to supply and demand theory, nothing is fixed in stone in the cryptocurrency market, and anything may happen.

On August 2, 2023, the third Litecoin halving will take place, lowering the block mining reward from 12.5 to 6.25 LTC. Nonetheless, we must keep an eye on Litecoin, as a performance similar to the last occurrence of this type may be replicated. However, the chances are slimmer, and the enthusiasm for halves appears to have gone down.

The next halving that the crypto industry is anticipating is that of Bitcoin (BTC), which is expected to occur in less than a year, around May 2020. The reward for mining Bitcoin blocks will be half, dropping from 12.5 to 6.25 bitcoins, similar to Litecoin.

Difference between Litecoin & Bitcoin

Satoshi Nakamoto created bitcoin, the world’s first cryptocurrency, in 2009. The code is open source, which means that anybody can modify it and reuse it in other applications. With varying degrees of success, many cryptocurrencies have been started using modified versions of this algorithm.

Litecoin was launched in 2011 with the goal of providing bitcoin liquidity. If Bitcoin is gold (a scarce commodity), Litecoin aspires to be cash. Here’s a breakdown of the key differences between Bitcoin and Litecoin.

Difference between Litecoin & Bitcoin – Source: AI.fr

Litecoin, like bitcoin, is virtual money that is created via mining. Former Google employee Charles Lee founded Litecoin in October 2011. It was created with the goal of improving bitcoin. The primary difference for end-users is that it takes 2.5 minutes to construct a block, compared to 10 minutes for bitcoin. Coinbase, one of the most popular online bitcoin wallets, now employs Charles Lee.

Litecoin, on the other hand, employs the scrypt algorithm, which was initially called s-crypt but is now pronounced “script.” Although this technique uses the SHA-256 algorithm, its computations are far more serialized than those used in bitcoin. Large volumes of high-speed RAM, rather than sheer computing power, are preferred by Scrypt. As a result, scrypt is referred to as regarded as a “memory issue,” because miners frequently run out of RAM before reaching the finish of the mining process.

Because there has been no ‘arms race’ in litecoin (and other currencies) as a result of employing scrypt, there has been no ‘arms race’ in litecoin (and other currencies). However, with firms like Alpha Technologies already taking pre-orders, this will soon change.

Bitcoin Mining rigs & GPU Mining

To illustrate the gap in hashing power, the bitcoin network’s overall hash rate is over 20,000 Terra Hashes per second at the time of writing, but Litecoin’s is just 95,642 Mega Hashes per second.

Litecoin mining rigs that are now considered “state-of-the-art” are bespoke PCs with numerous graphics cards (eg: GPUs). These devices have access to highly fast memory built into their own cards and can do the computations required for script.

People could once mine bitcoin using GPUs, however, ASICs rendered this approach obsolete due to its inefficiency.

Transaction differences

  • Because to its speedier block production, Litecoin can manage bigger transaction volumes. If bitcoin attempted to match that, it would have to alter the code that is used by everyone on the bitcoin network.
  • Due to the higher block volume, the Litecoin network will be proportionately larger than the Bitcoin blockchain, with more orphan blocks.
  • The quicker block time of Litecoin supposedly lowers the danger of assaults.
  • Many people interested in Bitcoin consider transaction speed (or quicker block processing time) and confirmation speed to be irrelevant considerations, because most businesses would allow non-confirmation transactions for most purchases to save waiting.

Difference between Litecoin and Ethereum

Litecoin is a truly digital currency in every sense of the term. Its primary function is to be utilized as a medium of exchange. It is open-source, much like other networks, which means anybody may download the program and then join the network. It is apparent that Litecoin is a kind of Bitcoin that has been improved. The initials LTC are used to symbolize it on trading platforms. Charlie Lee, the company’s founder, formerly worked at Coinbase and Google. If Bitcoin is digital gold, Litecoin is digital money since it is less expensive. While Litecoin is simple to understand, Ethereum is a little more difficult.

Differences between Litecoin, Bitcoin and Ethereum

It is a public blockchain that aids developers in the development of decentralized applications. It has its own currency, called Ether, much as Bitcoin. Take care not to mix it up with the network’s name, as some people do. Pow, a computer protocol also utilized by Bitcoin, secures the network. It helps developers overcome extremely difficult mathematical issues. This is why powerful computers are required. Miners are another name for these machines. They make it possible to verify transactions in Ethereum blockchain blocks. It’s vital to note that ether may be used to make online purchases in the same way that Bitcoin can.

The comparison of Litecoin and Ethereum technologies

These are two quite distinct technologies, as you can see from the brief definitions given above. On the one hand, Litecoin is a payment mechanism that is quite similar to Bitcoin, but it is less expensive and speedier. Ethereum, on the other hand, is a computer platform with its own programming language. It was created by Vitalik Buterin and lets a developer to design a secure application. These networks process transactions significantly quicker than Bitcoin. The time it takes to create a block is impressive:

  • On Litecoin, they are created every 2 minutes;
  • On Ethereum, every 20 seconds.

The Bitcoin network, on the other hand, certainly does not. It is, in fact, slower and has a significant bug problem. It’s vital to note that Bitcoin and Litecoin now collaborate rather than compete. Some people think of Litecoin as a testnet for its relative Bitcoin. Litecoin employs the script (a very efficient and quick computer program), whereas Ethereum uses Etash, a totally different method since they do not have the same expectations.

The price comparison of Litecoin and Ethereum

The price difference between Ethereum and Litecoin may have been noted by the more interested who have looked at the two networks. Indeed, the overall investment in both scenarios is considerably different. We must also remember that each currency has a distinct number of units. You should be aware that the price is determined by dividing the entire market value by the number of units available. As you may have guessed, the price varies depending on the number of units ordered. Despite the fact that Ethereum’s market value is presently 5 times that of Litecoin, its price is still 5 times lower. This is due to the fact that there are so many more parts accessible. To compare prices, you may use Coinmarketcap or any other website. You may better understand your market and make the best judgments by consulting and comparing pricing. During your research, keep track of the quantity of money in the market and compare it to the various prices you’ll come across. Litecoin is still slower than Ethereum in terms of payments. However, it is important to remember that Ethereum is not primarily a payment platform. It is a more difficult platform due to the increased number of transactions. As a result, because the network fills up quickly, it might be difficult to navigate if you are unfamiliar with it.

Where to buy Litecoin, Ethereum or Bitcoin?

>> I personally place all my orders on Binance, this is where I find the most functionalities as well as security.

Why was Litecoin invented?

With the introduction of Bitcoin, Charlie Lee, the creator of Litecoin, saw the enormous potential of cryptocurrencies. He did, however, recognize some of the digital asset’s inherent limits. Bitcoin transactions were sluggish and costly, making them unsuitable for regular usage. These qualities were not desirable in a currency, according to Lee.

That’s why he created Litecoin, a cryptocurrency with a larger maximum supply and more blocks than Bitcoin. As a result, Litecoin would be more accessible and speedier than Bitcoin.

Litecoin has failed to acquire popularity because many individuals find it difficult to look past Bitcoin, which was the first virtual currency to be introduced. However, as blockchain technology advances, many individuals may become dissatisfied with Bitcoin’s slower speed and higher transaction costs. Bitcoin may evolve into a store of value rather than a means of making low-value everyday payments.

How does Litecoin work and what is the technology behind it?

With a block confirmation period of 2.5 minutes, Litecoin transactions are significantly quicker than Bitcoin transactions, which take roughly 10 minutes to process. After that, each transaction between two parties is recorded on one of the chain’s blocks.

The core concepts of Litecoin are the same as those of Bitcoin. Orphan blocks might emerge if the tokens of the two payment networks are mined simultaneously. When two miners mine a block at the same time, orphan blocks are formed; both blocks are initially accepted by the blockchain, but one is eventually discarded. Because of its short block confirmation time, Litecoin employs Segregated Witness (SegWit) to limit the number of orphan blocks.

Atomic Swaps is another Litecoin technology that allows for blockchain interoperability, allowing multiple cryptocurrencies to be traded without the need for an exchange.

Is Litecoin real money?

Litecoin is designed to be used as a daily digital currency. This is demonstrated by its speed and low fees. Bitcoin, its forerunner, is shifting away from its practical value in small purchases and toward becoming a wealth repository for investment.

Bitcoin is pricey and slow to send, whereas Litecoin was designed and optimized to be cheap and fast, making it a better match for everyday use. Because of the growing number of websites and companies that accept e-money as payment, it may be referred to as “real money” rather than just a way to transmit value.

Litecoin Fees and Charges

The average Litecoin transaction cost is a little over $0.01 at the time of writing. When you consider the percentage costs charged by credit card companies, banks, and even PayPal to move money over the world, this is a pittance.

When making a purchase using an online exchange platform, the bank will charge a modest fee to complete the transaction. Purchases of $0 to $200 on Coinbase, for example, will incur fees ranging from $0.99 to $2.99, while debit card transactions will incur a 3.99 percent cost. CEX.IO, for instance, levies a 7.5 percent transaction fee.

What are the benefits of Litecoin?

  • Speed – LTC token transactions are quick, taking an average of 2.5 minutes. They are thus four times quicker than Bitcoin transactions, which take around ten minutes. This is accomplished through Litecoin’s quicker block processing times.
  • Cost — Litecoin transactions are inexpensive, especially when compared to the fees charged by Paypal, credit cards, and wire transfers. Litecoin is extremely lucrative, even when compared to Bitcoin, which has an average transaction cost of roughly $3 as of this writing.
  • Faster block creation – Every 2.5 minutes, a block is mined, and 12.5 coins are created. The next Litecoin network halving will take place in August 2023, at the time of writing this tutorial (May 2020). You are more likely to be rewarded for your mining efforts with Bitcoin than with other currencies.
  • Interoperability – Litecoins may be swapped for other currencies without going via an exchange thanks to Atomic Swaps technology, saving you money.
  • Decentralization – The community validates Litecoin transactions, which are then recorded on the blockchain. As a result, Litecoin is not controlled by a single central body.

Can Litecoin be used anonymously?

The blockchain will constantly keep track of each transaction between the parties. Using an alias, on the other hand, might be possible. Each transaction gives a numerical wallet address where the money was held, but tracing a single individual is exceedingly difficult. As a result, Litecoin provides a high level of anonymity, however, it should be noted that it is not totally anonymous.

It should also be highlighted that in order to purchase and sell crypto on one of the largest and most legitimate crypto exchanges on the internet, you will be required to present a picture ID. As a result, when you utilize these crypto exchanges, your transactions are not anonymous.

>> If privacy is important to you, you can find here our guide to buying Bitcoin anonymously.

How safe is Litecoin?

Litecoin contributes to the security of its token holders in a variety of ways. It defends against “Flood Attacks,” in which spammers try to bring the network down by flooding it with a large number of tiny transactions. Litecoin accomplishes this by making such an assault monetarily unfeasible. Because Litecoin charges a separate fee for each transaction, no matter how tiny, such assaults might be expensive.

SegWit technology also aids in the prevention of “malleability attacks” on user transactions. Segwit works by removing signature data from transaction records, making them inaccessible to hackers.

The Litecoin network has never been attacked or hacked by any exchange, which is a testament to the network’s strong security mechanisms.

>> Best sites to buy Litecoin in Nigeria
>> Best sites to buy Litecoin in Kenya

Who works on the development of Litecoin?

The Litecoin Foundation is a group of Litecoin developers. “Advance Litecoin for the benefit of society by creating and promoting innovative blockchain technology,” they say. It has teamed with a number of businesses to assist society in better integrating the usage of e-money. For example, Litecoin has collaborated with BitcoinRewards to enable individuals to earn LTC by purchasing online, and Meconcash to allow customers to withdraw money from Litecoin ATMs in South Korea.

The Litecoin Core Development Team is responsible for the development of Litecoin and collaborates with the Litecoin Foundation, which also offers financial assistance.

On May 19, 2020, Atari announced cooperation with Litecoin. As a result of this cooperation, Litecoin will soon be accepted as a payment mechanism for Atari games and consoles, among other things. The inventors of Litecoin wanted to make a splash in the gaming industry, so Atari was an easy choice. The arrangement offers up a new revenue stream for Atari in the form of Litecoin tokens that can be used to buy new consoles or Atari tokens.

Which financial institutions use Litecoin?

The Litecoin Foundation bought a 10% investment in WEG Bank AG in 2018. WEG Bank agreed to utilize Litecoin to facilitate transactions as part of the deal. Customers of WEG may now buy bitcoins through a well-known bank and use them to pay for goods and services.

WEG was naturally eager to take advantage of Litecoin’s lightning-fast transaction speeds. Similarly, Litecoin was eager to take advantage of the respectability that comes with collaborating with a well-known bank like WEG. Such a collaboration was viewed as a significant step forward in bridging the gap between cryptocurrencies and regular finance.

Litecoin token guide >> Source: Pixabay

Litecoin mining

To make the mining process more egalitarian, Litecoin employs the Scrypt algorithm. The Bitcoin mining mechanism, which Litecoin aimed to enhance, was designed to be democratic, enabling anybody to use the money. However, this did not occur, therefore Lee ensured that Litecoin would be more widely available.

Unlike Bitcoin, the Scrypt algorithm needs mining computations to be conducted sequentially rather than in simultaneously. ASICs (Application-Specific Integrated Circuits) are successfully prevented from monopolizing the mining process. The limitation on ASICs was enacted to encourage more people to participate in LTC mining, especially those who still use GPUs (Graphics Processing Units).

LTC’s quicker block validation times further democratize the mining process by letting more prospective miners to be rewarded for mining a block.

>> You want to learn about how to mine Bitcoin? Have a look at our guide on how to mine Bitcoin

Litecoin wallets

  • Ledger Nano S – Hardware Wallet
  • Tresor – Hardware Wallet
  • Exodus – Desktop Wallet
  • Atomic wallet – Mobile and desktop wallet
  • Jaxx – Mobile and Desktop Wallet
  • Loafwallet – Mobile Wallet

Different types of wallets offer different mixes of security, portability, and accessibility. 

Is it worth investing in Litecoin?

Litecoin has an 84 million token supply maximum, with over 64 million presently in circulation as of this writing. Because there is a finite amount of tokens, Litecoin is a safe haven against inflation-related devaluation. In the future, cryptocurrency might be utilized as a safe haven for investors in times of economic uncertainty, as well as a means of conducting cross-border payments.

If investors believe that cryptocurrencies are the way of the future, then Litecoin’s concept and structure would be ideal. The currency is created specifically for quick and affordable online transfers as well as modest payments, and it might be one of the first cryptocurrencies to be utilized globally.

The Litecoin Halving Is Over And Its Price Crosses $100 – Summary

  • On August 2, 2023, the third Litecoin halving will take place, lowering the block mining reward from 12.5 to 6.25 LTC. Nonetheless, we must keep an eye on Litecoin, as a performance similar to the last occurrence of this type may be replicated.
  • Because there has been no ‘arms race’ in litecoin as a result of employing scrypt, there has been no ‘arms race’ in litecoin.
  • The average Litecoin transaction cost is a little over $0.01 at the time of writing.
  • The Litecoin Foundation is a group of Litecoin developers.
  • Litecoin has collaborated with BitcoinRewards to enable individuals to earn LTC by purchasing online, and Meconcash to allow customers to withdraw money from Litecoin ATMs in South Korea.
  • The Litecoin Core Development Team is responsible for the development of Litecoin and collaborates with the Litecoin Foundation, which also offers financial assistance.
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