How it works, its features and its comparison with Bitcoin – gadgets to use

Litecoin (LTC) is an open-source decentralized cryptocurrency created as an alternative and stable coin compared to Bitcoin. It is the 14th largest cryptocurrency by market capitalization. Litecoin’s goal was to be a cheaper and faster alternative to Bitcoin that can be easily mined. In many ways, Litecoin was the first alternative currency. We will take a closer look at Litecoin, its unique features and what sets it apart from Bitcoin.

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explain Litecoin

Litecoin was created as a Lite version of Bitcoin, hence the name Litecoin. It was created by Charlie Lee in 2011. Charlie Lee was a software engineer at Goggle at the time. It shares many aspects that are similar to Bitcoin, such as the Proof of Work scheme, but it is lighter and faster at creating blocks and verifying transactions. Litecoin has been intended as an alternative to Bitcoin since its inception. But due to the saturation of the market and even more advanced crypto like Ethereum, it failed to gain much traction.

It is cheaper and easier to mine. The transaction costs are relatively low compared to Bitcoin or Ethereum. But unlike other coins, Litecoin’s supply is set at 84 million and will be no more. This is done to maintain Litecoin’s value in the market. Photon is the sub-coin of Litecoin, just like Paise is for Rupees. Let’s take a look at some of the unique features of Litecoin that set it apart.

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Features of Litecoin

There are several aspects and features of Litecoin that set it apart from other cryptocurrencies. These unique features are the reason why Litecoin has developed a huge community over the years. Let’s take a look at some of those features.

Scrypt hashing algorithm

Litecoin uses a proof-of-work scheme where several computers compete to validate a transaction and earn rewards. This is called mining. People had to run really powerful computers in a race to see who validates the transaction first. Not only did this consume a lot of electricity, but it also prevented many people from participating in this process. Because powerful computers are not easily affordable.

To solve this problem, a new algorithm called Scrypt Hashing Algorithm has been created. This decentralized Litecoin goes so far as to allow people to mine it even with their less powerful PCs. And earn Litecoin as a reward.

Lightning Network

Litecoin can perform 54 transactions per second. 54 transactions is not a huge number of transactions, so in order to realize more transactions, Litecoin has adopted Lightning Network. It was the first cryptocurrency to adopt the Lightning network. Lightning Network is a Layer 2 protocol that allows faster transaction processing. This allows thousands of transactions to take place within a second.

Merge mining

Litecoin uses a Scrypt hashing algorithm to allow a wider audience to mine Litecoin and validate transactions, but this also allowed people to mine another coin at the same time without using more resources or electricity. This gave miners even more incentive to mine Litecoin, as they can mine 2 coins at the same time. This is called Merge Mining. Any other coin that uses the Scrypt algorithm can be merged alongside Litecoin.

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