What is Litecoin?
Litecoin or LTC is a peer to peer (P2P) cryptocurrency which allows instant, almost free payment cost to anyone all over the world. It was released under the MIT/X11 licensed by Charlie Lee in 2011. It is a fully decentralized open source and global payment network which is secured by algorithm and investors are in full control of their accounts. There is no central authority involved with Litecoin which is nearly identical to Bitcoin.
Litecoin is generally lighter and faster than Bitcoin. It is incorporated with different technologies to level up its key functions such as superb industry support, trade volume and liquidity, a medium of exchange, and digital currency.
Litecoin Broken Down
Litecoin is complementary to Bitcoin, but Bitcoin is generally faster and more efficient. It is specifically made for merchant and vendor use. The use of the lightning network and segregated witness ensure clients that the network is capable of handling transaction of high volume faster, yet with a lower transaction fee. Recently, Litecoin is used in a cross chain atomic swap which means that clients can directly swap cryptocurrencies using smart contract and without the intervention of a third party. Litecoin has a market cap of $3 billion and can accommodate up to 84 million coins. Its price is lower than other cryptocurrencies, thus it is ideal to use when buying low priced good and availing low priced services.
Litecoin is known as an open source software which makes use of technological advances. Such technological advances include:
A block refers to the cryptographic technology based on a mathematical problem that is to be solved by the computer in order to complete the block. The block allows the users to modify information inside of it, which in return invalidates the data. In order to fix it, the incorrect draw has to be replaced with the correct one.
The creation of a new block creates a link of data from the previous block, thus the name blockchain. As the data gets older, it becomes more secure. Generally speaking, a block is valid when there are sufficient blocks added to the chain to make it more secured. Taking cryptocurrency into account, blockchain serves as the storage of immutable transaction ledger for the currency that is traded.
The Litecoin blockchain has the capacity to handle a large volume of transactions without the need to modify the software, due to the implementation of block generation, lightning, and segregated witness. With this, transactions are faster and fees are lower.
Mining refers to the process of solving mathematical problems by miners. The miners’ bundle transactions together. After which, they will solve the mathematical problem. At times, these mathematical problems are quite difficult, thus powerful or supercomputers are needed. Miners earn new coins or free transaction fees from solving these mathematical puzzles.
Furthermore, it is the miner’s responsibility to ensure that transactions made are valid by seeing into it that there are enough coins in a person’s account who is trying to make a transaction. Anyone can view the blockchain which means that anyone can view any transaction too. A trader can have as many wallets as he wants.
In Litecoin, a script which is an algorithm is used to determine the process of mining of new coins and is more accessible than any other forms of mining. The script enables mining without the use of ASIC based mining hardware. 25 new Litecoin is given for every block mined.
3. Industry Integration
Litecoin shares many characteristics with Bitcoin, making Litecoin one of the most integrated digital currency. It is supported by a wide range of channels which include ATMs, online and offline merchants, web casinos, and developers.
How to Buy Litecoin (From Coinbase)
Litecoin is one of the easiest cryptocurrencies to purchase from Coinbase. In order to Buy Litecoin from Coinbase, a client needs to
- register if it is his first time, but if he already has an account, all he has to do is log in to his account.
- Payment can be done via credit or debit card and bank transfer. The fee for cards are higher, but the transaction time is much faster.
- In the registration process, a verification of identity is needed in as much as you have to completely fill up the form. After which, a link will be sent to your email in order to verify your email account. The link attached will lead you to the verification page wherein you have to add your phone number and upload a copy of your valid I.D. In here, you have to add your bank details as well. Then your account is ready for your first purchase.
Litecoin belongs to the top 5 cryptocurrencies today. Making it to the top 5 list means that it is one of the best and it has something to boast off. Its great features and capacity differentiate it from the rest of the pack.