Litecoin and Bitcoin: The Major Differences

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Litecoin and Bitcoin Differences

Bitcoin and Litecoin represent two of the oldest cryptocurrencies, only with the former starting in 2009 whereas the latter shortly afterward, in 2011. Charlie Lee, an ex – google programmer, introduced Litecoin as the “light version of Bitcoin” at its introduction, and both coins have remained very popular over the years as new cryptocurrencies grow and get increasingly more attention. Bitcoin, of course, remains at the top and is the most valuable cryptocurrency in terms of market capitalization. Many investors have started to put money in Bitcoin. So, you must start bitcoin trading too using the Bitcoin Era trading platform. Other software’s don’t have an interface bitcoin society. Let’s learn about Litecoin and Bitcoin: the major differences.

Meanwhile, Litecoin is in 14th position (as of June 2021) but has been surpassed by other currencies which have already dominated the news process in recent months, including Dogecoin or rather Binance Coin. Litecoin, on the other hand, has remained a solid crypto asset that has provided an excellent ROI for its long-term investors. These two cryptos have many similarities, but they also have significant differences that have contributed to their very distinct places in the larger crypto market. This article compares Bitcoin and Litecoin to somehow help readers understand how they differ and also what the future may hold for these significant assets.

Algorithm

The algorithms are distinct:

  • Bitcoin use SHA-256
  • Scrypt is used by Litecoin

The latter’s characteristic is that its performance is dependent on the quantity of accessible memory. And, although Litecoin differed advantageously from Bitcoin during the first 2-3 years in terms of the ability to mine on processors, during 2018, the recovery of virtual currency BTC and LTC inside this manner is unsuccessful. In terms of graphic cards, mining Litecoin but also Bitcoin with such equipment likewise yields no results. The benefit from GPU mining has been reduced with the introduction of ASICs that function on Scrypt. The Litecoin network, on the other hand, is vulnerable to Botnet assaults because of the lesser number of miners. As a result, the Litecoin infrastructure is less secure from outside meddling.

Difference In Transactions

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One of the critical distinctions between the two cryptos is that Litecoin generates a block of transactions every 2.5 minutes, whilst Bitcoin takes 10 minutes. Litecoin can complete transactions nearly four times quicker than Bitcoin. Because of the difference in transaction time, Litecoin may be more appealing to retailers, and that is why Litecoin is often seen as money for day-to-day transactions, while Bitcoin is now seen as a store of value. This is feasible because Litecoin mining can be done on a home computer, but Bitcoin needs a specially configured machine.

Proof-Of-Work Algorithm

Another critical essential difference between Litecoin and Bitcoin has been its mining algorithm. Although both are public blockchain, Bitcoin employs the SHA-256 hashing method. Scrypt, a relatively young algorithm, is used by Litecoin. Another significant distinction between the two would be that Scrypt needs less computational power, allowing ordinary people to engage in mining with a little less intricacy.

Block Rewards and Coin Limits

Bitcoin & Litecoin are both ‘generated’ as incentives for miners who verify and execute transactions throughout the mining process. Both are also in short supply. Bitcoin has a total limit of 21 million coins, whereas Litecoin has a maximum of 84 million coins. No more coins will be generated after these limitations have been achieved. These awards are reduced in order to restrict the number of new coins added to the circulating supply, hence creating scarcity. Every 210,000 blocks, Bitcoin block incentives are half, whereas Litecoin block payouts are half every 840,000 blocks.

Mining Litecoin vs. Mining Bitcoin

Litecoin and Bitcoin are both intended to create a finite amount of money that cannot be exceeded. Bitcoin has a limit of 21 million BTC, although this has a perimeter of 84 million LTC. The supply limit will be reached after all of the coins on the blockchain have already been mined. Due to complex modifications aimed to maintain the pace of new block production consistent, it is projected that the very last BTC will not be mined before the year 2100. The supply limit of Litecoin is expected to be accomplished about the same time. BTC and LTC mining block rewards are intended to half at regular intervals – every 210,000 blocks with Bitcoin as well as every 840,000 blocks for Litecoin. This is indeed a deflationary method aimed to keep the coins’ value stable via scarcity.

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