All about Litecoin
Since its inception in 2011 Litecoin has got fairly widespread popularity and is often referred as the little brother of Bitcoin. A cryptocurrency that uses blockchain technology to maintain a public ledger of transactions, it transfers funds directly between individuals and business without a need of any intermediary like payment processing services or banks.
What is the secret of Litecoin that makes is different from other coins?
Three secret ingredients of Litecoin are:
- Speed: although it is based on the same technology that works behind Bitcoin with some notable differences. Being created as silver to Bitcoin gold one of the notable disparity between the two is transaction speed. It is detected to be four times faster than Bitcoin in terms of processing transaction, so it can process the transaction much quicker and can handle the much higher number of them compared to its Bitcoin in the same time frame.
- Coins: one of the reasons behind the value of these digital currencies is its limited supply. Once the certain number of the coin is created then there can be no new coin at that point in time. Litecoin has a coin limit of eighty-four million.
- Market capitalization value: It pales in front of Bitcoin when the question of the market cap comes, but is still among the top five Cryptocurrencies. The ranking is totally based on the price and the number of digital coins being circulated.
The remarkable difference between Bitcoin and Litecoin lies in the hashing algorithm that it follows to solve the block and the number of coins in circulation at the time when the solution was found. In contrast to Bitcoin, Litecoin coin follows a simple hashing algorithm which is memory intensive and is known as scrypt.
Miners use the GPU / CPU cycle to solve the complex mathematical problem. The data passes through the block following the aforementioned algorithm until the solution is found collectively. After the solution is found and verified the transaction within a block gets stamped as legitimate. Rewards are distributed among the miners who helped to get the solution, miners with more hashing knowledge get the lions to share. Miners looking forward to mining joins the pool where their computing power is combined with others and they get the share of the reward.
As in the case of other digital currencies, all the transactions that happen in Litecoin blockchain are searchable and public. Anyone can without difficulty peruse these records or search for an individual block through a Litecoin block explorer. Click full report for more information.