What is Litecoin?
Litecoin was launched as an alternative to Bitcoin and is widely referred to as the silver to Bitcoin gold. It was developed by Charlie Lee in 2011.
It was originally created to address the developer’s concerns that Bitcoin was becoming too centralised and to make it more difficult for large mining companies to dominate the mining process. Although it ultimately failed to prevent mining companies from monopolising the majority of Litecoin mining, the cryptocurrency has since evolved into a minable coin and a peer-to-peer payment system.
Uses and Use Case of Litecoin
It was designed to fix alleged bugs in Bitcoin’s open-source code. It works to shorten block creation time by reducing block size and limit the duration of blockchain transactions and payments. It was developed for lower-cost transactions and is very effective for everyday use.
here is how Litecoin serves these Purposes
Technology: To ensure that everyone agrees on the status of the public ledger, Litecoin uses Proof of Work (PoW) in conjunction with Nakamoto Consensus, exactly like Bitcoin does. Users of Litecoin can buy more Memory instead of needing to buy prohibitively expensive, highly specialised application-specific integrated circuits (ASICs) to mine.
Intrinsic Value: As Litecoin aims to be a cheaper, more “spendable” currency for day-to-day transactions than Bitcoin, users are encouraged to spend LTC rather than hold the coin for speculative purposes, portfolio diversification, or secure seizure-resistant money.
Use cases of Litecoin
OmniLite:
OmniLite makes it easier to create decentralised tokens, smart contracts, and digital assets like tokens and NFT. Due to its integrity, network security, scalability, and very cheap fees, Omnilite has a distinct advantage over other blockchains.
Lightning Network:
On the Lightning Network, micropayments are governed by smart contracts, which are rulesets that must be followed for transactions to occur. When compared to the fees collected by miners on the main blockchain, the fees are probably quite minimal. Compared to miners, Lightning Network nodes have much simpler work to accomplish.
Litecoin Core:
The Litecoin cryptocurrency allows instant payments to anyone, anywhere in the world, using peer-to-peer technology without the need for a central authority
What Make Litecoin Different from Bitcoin?
- The SHA-256 algorithm, which rewards computing power, is used in Bitcoin mining. The “scrypt algorithm” used by Litecoin promotes fast random access memory over computing power.
- Another important differential is that the scrypt algorithm may be employed on less powerful computers, enabling users to start mining Litecoin on personal computers without incurring the cost and learning curve of doing so.
- Transactions in Litecoin are processed much faster than those in bitcoin, but this speed has a few disadvantages as well
Competitors of Litecoin:
Competitors to Litecoin based upon its use cases, differences and also reliability of blockchain and ease of use of blockchain. Some of the important competitors of Litecoin are:
- Ethereum
- Bitcoin
- Neo
- IOTA
- Monero