Litecoin is a well-known cryptocurrency developed by Charlie Lee who is an MIT graduate and former of Google engineer in 2011. It is based on the model of Bitcoin, but Litecoin has faster block generation rate and use of script as a proof of work scheme. Litecoin relies on an open supply world payment network that’s not controlled by any central authority.
What is Litecoin?
Litecoin is a peer-to-peer internet currency. Litecoin was developed with the aim to improve on Bitcoin’s shortcomings and has earned industry support along with the high trade volume and liquidity over the years. Litecoin is designed to produce more coins at the faster rate. Like all cryptocurrencies, litecoin isn’t issued by a government, which traditionally has been the entity that society trusts to issue cash.
What is Litecoin mining?
The procedure of creating the litecoins is called mining, which consists of a list of litecoin transactions. Unlike traditional currencies, the supply of litecoin is fixed. Litecoin mining is the processing of a block of transactions into the Litecoin blockchain.
Litecoin mining by solving the algorithms and being the first to reach a solution is rewarded with the tokens as payment. There will ultimately be only 84 million litecoin in circulation and not one more. Every 2.5 minutes, the litecoin network generates what’s known as a block. It is an accounting entry of recent litecoin transactions throughout the globe. The block is verified by the mining software and created visible to any “miner” who needs to visualize it. Once a miner verifies it, the next block enters the chain, which may be a record of each litecoin dealings, ever. The incentive of the primary miner is rewarded with 50 litecoin for successful verification of block.
Advantages of Litecoin over Bitcoin
Litecoin can handle more transactions, given the shorter block generation time.
Litecoin also has a barely perceptible transaction fee.
It costs 1/1000 of a litecoin to process a transaction, regardless of its size.
Litecoin also has almost zero payment cost.
The payments approximately four times faster than Bitcoin.
Faster to adopt new technologies.