Charles Lee not only understood the idea of Bitcoin, but also developed an equally effective numbering system. Litecoin is one of the top Bitcoin hunters not only among experts. This is particularly evident in the share price and its development. Both digital currencies are due to the identical system. In the first step, each individual coin is first produced. The technical language then refers to Litecoin Mining. However, the main difference for the user is that the time span is only two and a half minutes to generate a single block. With bitcoin, however, this process takes 10 minutes. This means that money transfers between users are generated much faster. This weakness is becoming increasingly evident at Bitcoin. The number of transactions increases daily, which is why transaction confirmations in the Bitcoin network take longer and longer. With Litecoin, transactions can be confirmed four times faster.
Update: The SegWit process (Segregated Witness) was successfully activated at Litecoin to meet the high number of transactions. This solved the scaling problem that is currently (June 2017) still a big problem for Bitcoin.
In contrast to Bitcoin, users who actively engage in litecoin mining appreciate the algorithm used. While Bitcoin uses the so-called SHA-256 algorithm, the calculations for this digital currency are performed using a crypt algorithm, which is responsible for the shortened time span when calculating a block. Since the miners are rewarded with coins every time a block is produced, the faster a block can be produced, the more advantageous it is.
In the Litecoin network, the maximum number of coins is limited to about 84 million, four times more than with Bitcoin.
The Litecoin course and its development
While the Litecoin share price has staggered between $3 and $4 in recent months, it now experienced a significant leap upwards in April 2017. Overall, the price has risen by up to 500% and has reached the $500 million mark. In June it rose again sharply, reaching a record high of over $40 (towards the end of 2013 the price was still at $48). The implementation of Segregated Witness could be one of the main reasons for the growing course. This type of log modification is ultimately intended to make Litecoin more powerful, as the transactions can be processed more quickly. Originally, Segregated Witness was developed for the Bitcoin system.
In addition, the following news could have pushed up the price: China has recently withdrawn its ban on the withdrawal of litecoins from stock exchanges.
4 ways to Litecoin
There are three different ways to get this coin.
Firstly, people around the world have the opportunity to earn this digital currency through mining.
On the other hand, the digital currency can also be a means of payment for an exchange transaction. Especially in Africa, the crypto currency is becoming increasingly popular.
So far the detour is to go over other crypto currencies, as for example Bitcoin, in order to exchange these afterwards over an exchange stock exchange against Litecoin. Especially popular are file-sharing sites like Exmo or HitBTC.
Litecoin Mining: Earn money with your own PC
The basic prerequisite for the digital currency is litecoin mining, which can be practiced worldwide. The only requirements are a computer and an Internet connection. Translated, mining means “mining” of Lite coins. This process solves individual blocks that were previously generated on the basis of a special hash function. In this respect, there is a clear parallel to the degradation of bitcoins. Since the new blocks are generated in a time window of two and a half minutes, Litecoin Mining is practically a never-ending task. After four years, the rate of block creation is halved. This continues until a certain quota of litecoins has finally been reached. This mechanism is intended to protect against inflation, as is often the case with paper and coin currencies. As a rule, the individual blocks are so extensive that an individual user needs several weeks to solve them. Accordingly, user-related pools have been formed to work together on the solution through mining, whereby the generated capital is shared equally among the users. The Litecoin Mining fee is 25 Litecoins per solved block. In 2019, the next halving to 12.5 litecoins per block is expected to take place.