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What is litecoin?


Litecoin

Symbol: LTC

Released: 2011

Maximum stock: 84 million

Divisibility: 8 decimal places

Official website: https://litecoin.org

Litecoin is one of the oldest and most famous cryptocurrencies in the world. The Litecoin network was launched on October 13, 2011. The founder of Litecoin is Charlie Lee, who worked for Google before Litecoin. From a technical point of view, Litecoin is almost identical to Bitcoin. Litecoin is often used to test new innovations for Bitcoin before actually using them. That is why Litecoin is a kind of bitcoin light. Many would argue that Bitcoin and Litecoin are like the gold and silver of cryptocurrencies.

There are currently around 65 million Litecoins worldwide. The maximum number of Litecoin is 84 million. Litecoin uses a Proof of Work consensus-based method. This means maintaining the blockchain with physical mining machines. Miners are currently rewarded with 12.5 new Litecoins per block. The number of new Litecoins per block is halved approximately every four years (every 840,000 blocks). In the case of Litecoins, halving the reward means the decrease in Litecoins entering the market. As with Bitcoin, halving is a feature programmed into the blockchain. The aim of the halving is to prevent inflation and stabilize the litecoin.

The Litecoin blockchain is maintained by miners. In the Litecoins blockchain, mining is a validation of transactions. The miners receive new Litecoins as a reward for their work. Mining is important for the Litecoins network, as there would be no network without the miners.

Litecoin founder Charlie Lee now works full time for the Litecoin Foundation. The Litecoin Foundation is a non-profit organization that promotes the development of Litecoins. The mission of the foundation is the worldwide improvement and dissemination of the Litecoin, as well as the blockchain technology in the whole.

The history of Litecoins

Litecoin founder Charlie Lee has played a crucial role in the project from the very beginning. Even today, Litecoin still embodies Charlie Lee very much. In 2000, Charlie Lee graduated from the Massachusetts Institute of Technology (MIT) with a master's degree in computer science. After graduating, Charlie Lee started working at Google.

Charlie Lee worked at Google for more than a decade until he became interested in Bitcoin in 2011. Early on, Lee noticed that there was still room for another cryptocurrency. Finally, the Litecoin network was released on October 13, 2011. So Charlie Lee created Litecoin pretty quickly. Some claim that he just copied the Bitcoins code and made a few changes. There's nothing wrong with that, after all, Bitcoin is open source, i.e. it can be used free of charge by everyone. Litcoin has been well received since its inception. Nowadays, Litecoin has established itself as one of the largest cryptocurrencies on the world market.

From the beginning, Charlie Lee's goal was to make Litecoin easier and faster than Bitcoin. How he managed this is explained in the following paragraph, which deals with the differences between Litecoin and Bitcoin.

The differences between Litecoin and Bitcoin

One of the clear differences between Bitcoin and Litecoin is the number of Litecoins. Bitcoin's maximum supply is 21 million, while the maximum supply of Litecoins is 84 million. The maximum number of Litecoins and Bitcoins are an integral part of the blockchain's program code and can therefore not be changed in the future.

Litecoin and Bitcoin both use a consensus-based method called Proof of Work. Proof of Work is the conventional consensus-based method in which blockchain maintenance work is carried out with physical machines. Like new Bitcoins, new Litecoins are given to the world through mining rewards. A new block of the Litecoin blockchain is created every 2.5 minutes. The corresponding number of the Bitcoin blockchain is 10 minutes. As a result, Litecoin transactions are a whopping four times faster than Bitcoin transactions.

Litecoin and Bitcoin are very similar from a technical point of view. Litecoin and Bitcoin come from the same program code and their blockchains are almost identical. Litecoin's founder, Charlie Lee, has advocated the benefit of these similarities several times. Litecoin can even benefit from the improvements made by the Bitcoin network in their own operations. A great example is the SegWit update, which was also activated for Litecoin last year. The SegWit update improved the capacity of the Litecoin network. In addition, Litecoin uses the Lightning network, which is also a familiar Bitcoin. Thanks to the Lightning network, transfers are very fast. Litecoin also has a bit of an impact on Bitcoin. Litecoin plans to release a so-called "MimbleWimble" feature in the course of privacy. This feature means better privacy protection for Litecoin users in the future. There is currently no similarly planned feature for Bitcoin.

Litecoin and Bitcoin are said to have different uses. Bitcoin is a store of value and an alternative to the current monetary system. Litecoin makes the currency suitable for everyday use with faster transfers and lower fees.

It is important to understand that despite the many similarities between Litecoin and Bitcoin, Litecoin is not a fork, i.e. not a branch of the Bitcoin blockchain. Litecoin is a completely separate and independent cryptocurrency with its own blockchain. There are just many similarities between the blockchain litcoins and the blockchain bitcoins.

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