Exploring Litecoin: An Overview and Future Outlook

Let’s talk about Litecoin, often called the digital silver of the world of blockchain. It’s one of the first offshoots of Bitcoin and is sometimes seen as a major rival to Bitcoin, the first and most famous blockchain currency. This is only partly true. Any digital currency that can be used to buy things could be seen as a rival to Bitcoin and other digital currencies. But the people who made Litecoin have always said that they didn’t make it to push Bitcoin out of the digital currency market. Instead, they made it to make it easier to transfer value and to become a worldwide payment system.

Bitcoin is like a digital version of gold. It can be used to store value and to transfer value. The total amount of Bitcoin, like the total amount of gold on Earth, is limited. That’s why people often call Bitcoin digital gold. But both Bitcoin and gold have their limits when it comes to everyday use. That’s why there’s a need for another digital currency.

The relationship between Bitcoin and Litecoin is a bit like the change in the money system from the gold standard to a system that used both gold and silver. Gold was good for storing value, but it wasn’t so good for transferring value. So silver became an alternative to gold. But that didn’t mean that gold became useless. It was still good for storing in bank vaults and using as a backup or a reserve. But for small purchases, it was easier to use silver coins.

What is Litecoin

Litecoin is a digital currency, often seen as an alternative to Bitcoin. It operates on a peer-to-peer payment system, enabling transactions and transfers between users.

This digital asset can be converted into Bitcoin, and can also be used for purchasing goods and services at places that officially accept cryptocurrency as a form of payment. Litecoin was brought to life by Charlie Lee, who previously worked at Google.

Litecoin made its debut in 2011 as a potential substitute for Bitcoin. The creator of Litecoin highlighted the unique aspect of his cryptocurrency – its open-source nature, which allows anyone to alter or replicate it. Similar to Bitcoin, Litecoin is decentralized, meaning it isn’t owned by any specific bank. The individual who mines the coin or converts another currency into it becomes the owner.

Official website: https://litecoin.org

The official Litecoin website was launched shortly after the creators found that the cryptocurrency was gaining traction. The website features sections such as:

• Communities, where users can interact and share their strategies for efficient mining of the cryptocurrency, and access Litecoin-centric social media groups;
• Resources, where Litecoin can be purchased and exchange rate statistics can be viewed;

• Information about rewards for users engaged in mining the cryptocurrency;

• A wallet that any user can create to store their cryptocurrency, convert it into other currencies, and use it as a payment method.

• The website also provides useful statistical data, including the difficulty level of the Litecoin network, which shows users how hard it is to mine this cryptocurrency at any given time.

Technical side

Currently, Litecoin showcases the following key metrics:

Litecoin saw its popularity surge in 2017, which subsequently led to a gradual uptick in the value of each coin. Three years ago, the coin was valued at $267. As of now, the current value in USD is $110,27 USD.

Please note that the values are subject to change and for the most recent data, you can visit the official Litecoin website or use financial platforms that provide real-time cryptocurrency data.

Litecoin mining

Mining Litecoin means using special equipment to get this digital coin. If you’re just starting, it’s good to know about the top equipment for 2023.

Special Equipment

The equipment you use can change how much money you make from mining. In 2023, these models are the best for making money:

• Antminer L7 9500/9160 Mh
• Innosilicon A6+ LTC Master
• Antminer L3++

ASIC devices are better than graphics cards because they pay for themselves faster and you don’t need to spend time and effort building a mining farm. These devices are a good choice for people who want to make their living from mining, because they need to be used in a professional way.

Comparison of Bitcoin and Litecoin

While there are many commonalities between these digital currencies, they also possess notable distinctions:

Blocks

The process of block formation in Litecoin is similar to that in Bitcoin. The key difference lies in the hash functions they employ. Litecoin uses Scrypt, whereas Bitcoin uses SHA-256.

Mining

A unique feature of Litecoin’s hash function is the “serialization” of computations, which is absent in Bitcoin. Consequently, Scrypt requires a larger amount of RAM, as mere computational power is insufficient. This results in a less intense competition for equipment in Litecoin compared to Bitcoin.

Addresses

For Litecoin, all transactions are conducted using addresses that are based on the application of private and public keys. The difference is in the number of characters; Litecoin addresses consist of 33 characters, all starting with the number 3 or the letter L. Bitcoin addresses can range from 27 to 34 characters, typically starting with either the number 1 or 3.

Transaction Speed

According to seasoned miners, the time taken to create a block in Bitcoin is considerably longer than in Litecoin. It can take around 10 minutes for Bitcoin, while Litecoin can accomplish this in a maximum of 2.5 minutes.

Number of Coins. The total number of coins minted for Bitcoin is 21 million, while for Litecoin, it’s 84 million.

Network Atomic Operations

In 2017, the first transactions between Litecoin and several other cryptocurrencies were executed, demonstrating the feasibility of performing a variety of operations between different blockchains using P2P technology.

How to buy Litecoin

To purchase cryptocurrency, one must utilize services specifically created for this purpose, known as exchanges. The cost of Litecoin may slightly differ across these platforms, as each exchange applies its own transaction fees.

Currently, the most popular and frequently used exchanges include:

• Binance
• ByBit
• Huobi Global
• Gate.io

The available trading pairs are:

• LTC/USDT
• LTC/BTC
• LTC/BUSD
• LTC/ETH
• LTC/USDC
• LTC/BNB

Wrap Up

The future success of this Bitcoin derivative is uncertain, as it will always have fewer holders due to the undeniable dominance of Bitcoin. Despite its unique features, Litecoin’s performance will always be overshadowed by Bitcoin, mainly due to its lower per coin value.

However, Litecoin mining is more approachable compared to Bitcoin mining, making it sensible for miners to immediately convert their mined LTC into BTC.

If Western governments chose to follow China’s lead and clamp down on the blockchain industry, 90% of the current digital coins would vanish within a year. But as long as there’s no global ban on cryptocurrencies, Litecoin has potential. However, it’s not wise to put all your eggs in one basket. Fundamentally, Litecoin was designed to be spent. The more it’s used in transactions, the quicker it will be accepted as a payment method in commerce and services. If everyone starts hoarding their Litecoins, the network will eventually cease to function and the digital silver will become a worthless hash code. It’s smart to save a little for unforeseen circumstances, and circulate the rest of the tokens. This strategy will make investments profitable.