Litecoin ($LTC) was launched on the 13th October in 2011 by former Google engineer, Charlie Lee. Litecoin is an open source fork of bitcoin with a few changes designed to improve on the existing framework, with Litecoin often referred to as the “silver to Bitcoins gold.”
After the launch of Litecoin, there was an incidental influx in the altcoin market and interest rapidly grew. Also having implemented ‘Segregated Witness’ (Segwit) and the lightning network did help the reliability of the network upon increased or surging volume all while keeping costs low for users.
Let’s see if Litecoin is pushing the boundaries or simply is a ‘me-too’ project…
TITLE/ TICKER: Litecoin (LTC)
COMPANY ORIGIN: Singapore
FOUNDERS: Charlie Lee
WHITEPAPER: Bitcoin Whitepaper – (No official Litecoin whitepaper)
PURPOSE: Decentralised digital currency designed for micro/macro-transactions.
CONSENSUS ALGORITHM: Proof-of-work (PoW)
POINT OF DIFFERENCE: N/A
FUNDRAISING DETAILS/TOKEN DISTRIBUTION: None
How is Litecoin different to Bitcoin?
Like many ‘Altcoins’ – it is often hard to find any major points of difference vs Bitcoin. Litecoin was ‘forked’ with a few adjustments and improvements from the Bitcoin code-base. However these are minimal on paper and Litecoins leadership, swift consensus and efficient decision-making process may be Litecoin’s largest asset, its no secret Bitcoin has and struggles with consensus/governance.
Increased Block/Miner Rewards
Litecoins block-rewards have increased with miners receiving 25 LTC per block, these rewards will half every 840,000 blocks or roughly 4 years. This brings the network to a total of 84 million Litecoins, 4x that of bitcoin’s total fixed supply.
Litecoin’s reduced block time gives Litecoin a 4x higher capacity to handle transaction volume than bitcoin. Litecoins transaction processing speed is 2.5 minutes and bitcoin is 4x longer at 10 minutes currently, however scaling is one of the most prominent issues and discussion points to date.
Bitcoin uses a hashing algorithm called ‘SHA-256’. This is very difficult to create a new block on creating the need for expensive hardware to efficiently mine the currency.
Litecoin uses ‘Scrypt hash’, which was originally designed to favor the use of random access memory instead of raw-processing power in order to prevent the need for expensive specialist equipment, users could mine Litecoin using a normal home PC. As time progressed, however, companies developed this specialised equipment to become efficient at mining any cryptocurrency using Scrypt hash.
Unlike Bitcoin, Litecoin under the helm of Charlie Lee and the Foundation is quick to pivot and implement technology and organisational direction. This can be seen as Litecoin integrated and implemented Segwit and the Lighting payment network before Bitcoin.
What are the use cases for Litecoin?
Litecoin is looking to be the go-to cryptocurrency used for everyday micro or macro transactions and transfer of value. Charlie Lee and the teams’ vision to have Litecoin accepted everywhere money is accepted and to compliment Bitcoin.
Decentralisation vs Bitcoin
Another major discussion point and conflict has been around Bitcoins centralisation which has led to speculation about what direction Bitcoin is heading (hence Bitcoin Cash). However, Litecoin has identified this and have a improved decentralised model to date.
Charlie Lee, (ex google engineer and Coinbase employee) created Litecoin with the help of a few developers and is the founder of Litecoin. The Litecoin development team comprises of the foundation and core teams all contributing financially/physically.
The Litecoin Foundation
The Litecoin Foundation was created to advance the development of the Litecoin project and to oversee governance democracy and community projects/inititiaves.
The foundation is comprised of;
Charlie Lee (Managing Director)
- Operations Director: Keith Yong (SG)
- Sponsored Full-time Developers: Adrian Gallagher (thrasher, AU) Loshan T. (UK)
- Part-time Developers: Loshan T. (UK), Fan Yang (CN)
- Marketing Director: John Eidson (US)
- Project Director: David Schwartz (US)
Where can you purchase Litecoin $LTC?
How to protect your Litecoin $LTC?
We always recommend using a Ledger Nano S or Trezor – where your private keys are never exposed online. Please refer to the Hardware wallet websites for an accepted, proven list of projects before sending your assets.
Alternatively if using a web wallet we recommend downloading the approved Litecoin Core wallet from the official Litecoin website.
Outlook for Litecoin?
As Litecoin is one of the original altcoins is has established a very firm position in the top 5 from inception and as of yet, there are no signs of it slowing down.
Litecoin – known as the silver to gold, has been somewhat of a testing ground for Bitcoin, for example, Segwit2x and the lightning network were implemented on the Litecoin blockchain well before Bitcoin decided to implement.
Other than this Litecoin has no real unique point of difference and can join the growing list of cryptocurrencies looking to gain mainstream adoption. However, Charlie Lee’s business nous, skills and the foundation/community/first mover advantage may serve Litecoin well into the war ahead.
Disclaimer : The Author did not hold Litecoin $LTC at the time of writing this article. All content is research, opinions and personal view points from our Analysts. This is not financial advice and should not be treated as such. If you have any queries or edit requests please contact [email protected]