Litecoin, the one that is putting up the fight
Being the first cryptocurrency in the market, Bitcoin (BTC) has marked the route for many of the currencies that continued to emerge. And many of these currencies that continuously appear try to offer changes to what Bitcoin posed in order to provide an “improvement” to the existing.
However, the vast majority remained in failure.
Litecoin (LTC) was one of the few cryptocurrencies that managed to propose solid differences that improved some elements of the Bitcoin system. To get to know the Litecoin project better, we will explore in this guide and tell you what are the differences that arise between when we compare Litecoin vs Bitcoin.
The limits in coin production
Like Bitcoin, within Litecoin there is a cap on the production of coins to guarantee a stable and controlled supply. In the case of Litecoin, the cap is set at 84 million coins, a number that exceeds 4 times the cap of the 21 million units of Bitcoin.
This cap was deliberately decided and focused on the idea that as Litecoin is a currency designed for small transactions, there should be 4 times more currencies in circulation compared to Bitcoin.
Block processing speed
When Charlie Lee released his project to the public, he explicitly mentioned the need for faster transactions than those offered by the Bitcoin network and, for that purpose, one of the points that needed to be worked on was the confirmations. In the case of Bitcoin, a block is confirmed in 10 minutes, which directly affects the speed of the transaction.
Charlie Lee stated that the Litecoin network could take a quarter in the process of confirming a Bitcoin block, the desired time was 2 minutes with 30 seconds for each block of transactions
Obviously, this speed in the confirmation of blocks was done by sacrificing security (or at least that was what Charlie Lee himself claimed from the beginning) although this would not affect so much since, in theory, Litecoin transactions would only be for small transactions.
Lee mentions that, if safer transactions are wanted, users could choose to do operations on the Bitcoin network with their 10-minute processing per block.
Another fundamental difference – that is generated by the speed at which the blocks are created -, is that within the Litecoin network a greater amount of “orphan blocks” is made by the speed at which transactions are carried within the network.
Orphaned blocks arise when two miners correctly solve a block, but, with a difference of very few seconds, generating two “correct” blocks within the network at the same height. The network will continue to generate blocks and use one of the two blocks as a base, leaving one of the blocks as an orphan. Then the miner that made this orphan block does not receive any kind of reward for his work.
Amount of coins produced per day
Let’s try to remember that, as a block of transactions is added to the network, a reward is released for miners who have worked on the coding and processing of that block. Now, in the case of Litecoin we can see that, by having faster block processing, there is also an increase in the amount of coins that go into circulation every day.
So that we can have the numbers, in the Bitcoin network about 144 blocks are produced per day while in the Litecoin network the production is raised in 576 blocks in the same period of time. When the blocks are generated at this speed, the Litecoin network puts 4 times more coins in circulation than what we can see in its Bitcoin counterpart.
With all this in mind, you’ll understand that Litecoin is a certainly different option from Bitcoin; Oriented to another type of use.
If you are interested in knowing more about how to own this cryptocurrency, I encourage you to continue reading the following section.
What are the best Litecoin wallets?
Litecoin is stored securely on your computer, tablet, cell phone or laptop. Performing operations with this currency is so easy, you just need to configure your wallet and start sending or receiving coins.
By maintaining full compatibility with the Bitcoin API, Litecoin is very easy to integrate into applications that already offer support for Bitcoin. One of the main advantages offered by the Litecoin network is the fastest transaction confirmation, making it the ideal currency to make small purchases.