Crypto currency LitecoinDwain Ross 08 / December / 20 Visitors: 186
Crypto currency Litecoin is one of the first forks of Bitcoin that operates on the same principle but has some advantages. Litecoin came in second after Bitcoin for a long time; for that reason, it was called "digital silver". Recently, the crypto currency has fallen down within the top ten chart giving place to newer and promising coins. Our review of Litecoin will help to understand what caused the drop and whether it is able to return to past positions.
In simple terms, we can say that Litecoin is a light version of Bitcoin. So blockchain for Litecoin is a series of blocks, where each subsequent block contains the hash of the previous one. New blocks appear as a result of the peer-to-peer decentralized network, which also makes so Litecoin independent and protected from outside influences, like its predecessor Bitcoin.
New blocks within the Litecoin blockchain are formed four times faster than Bitcoin. Consequently, it increases the transaction speed in terms network confirmation. Litecoin has implemented the support of the Segregated Witness protocol, which allows optimizing the work of the blockchain without increasing the block size. Therefore, Litecoin is a system of fast and cheap transactions because the developers strived to fight the problems inherent to the Bitcoin network, where the system does not have time to process all the transactions.
Litecoin mining is similar to Bitcoin mining but it still has differences. Instead of the SHA-256 hashing algorithm, it uses scrypt. Video cards (GPUs) are better suited for graphics on the scrypt algorithm than the CPU. Most often used video cards NVIDIA and AMD. However, NVIDIA shows worse results than AMD and the farm will come out more expensive.
Emission of the coin exceeds Bitcoin by four times. The Litecoin system is meant for mining a total of 84 million coins. The algorithm of Litecoin scrypt interacts with memory much more quickly so the mining process is faster. In case of Bitcoin, a new block is formed every 10 minutes and it takes 2.5 minutes with Litecoin. In 2011, the compensation for the created unit was 50 LTC. This amount will be reduced by half every 8 million blocks; it is 25 LTC since 2015.
Litecoin went the same path as Bitcoin. First, the mining was done on the CPU, then on the GPU and then the ASICS appeared. Now Litecoin mining makes sense only on an industrial scale. Forget about getting solo coins – it is unprofitable and pointless. You can participate in pools but they will not bring much benefit either. You can consider cloud mining but remember that this type of Litecoin mining is likely to be a scam.
Prospects and forecasts for the future
Forecasts for Litecoin are difficult to do. The crypto currency has been in the market for a long time but the rate has recently begun to grow rapidly against the backdrop of the increased popularity of blockchain technologies.
Lightcoyin is popular; it is traded on all exchanges and in all possible pairs. But considering the increase in the number of miners, it became unsuitable for mining alone, which had a bad effect on its ratings. Lightcoyne is good as a means for making fast and cheap transactions but it is too simple compared to newer crypto currencies, which offer participants much more opportunities. For example, trading ICO tokens or smart contracts.