What is Litecoin (LTC)?
Litecoin (LTC) is a cryptocurrency designed to make fast, secure, and affordable payments using the unique features of blockchain technology.
Cryptocurrencies are based on the Bitcoin (BTC) protocol but differ in the hashing algorithm used, strict restrictions, block transaction times, and a number of other factors. Litecoin has a blocking time of only 2.5 minutes and the transaction fee is very low, making it suitable for micro-transactions and point-of-sale payments.
Litecoin went on sale on GitHub on October 7, 2011, through an open-source client, and the Litecoin network launched five days later, on October 13, 2011. Since then, it has exploded and counted to the extent of merchant consumption and acceptance. one of the top ten cryptocurrencies by market value for most of the time.
The cryptocurrency was created by Charlie Lee, a former Google employee, who wanted to make Litecoin a “simpler version of bitcoin,” which has many of the same characteristics as Bitcoin but is lighter in weight.
Note: Litecoin is a fork of Bitcoin, which means it is based on the same software with some updates and changes. For Litecoin, the updates allow direct transactions with a much lower network fee than Bitcoin.
Litecoin is an open-source support association that runs the Litecoin Network. Like Bitcoin, Litecoin uses blockchain technology to secure transactions.
Transactions in the Litecoin network are controlled by miners, who operate behind the scenes and develop computers that can earn Litecoin. Under current arrangements, a maximum of 84 million litecoin will be generated before the network issues new coins.
How does Litecoin (LTC) Work?
Changing Bitcoin Code Litecoin has many similar features. So, if you know how bitcoin works, it will be easier to understand Litecoin.
Litecoin allows users to own and exchange cryptocurrency LTC using encryption, and its software places strict limits on LTC, which can reach up to 84 million.
Like Bitcoin, Litecoin uses a proven form of extraction to allow anyone with computer hardware experience to add new blocks to their blockchain and unlock their newly created Litecoin.
The two main differences are that Litecoin is designed to execute transactions quickly and uses different extraction algorithms. On Litecoin, a new block is added to the blockchain approximately every 2.5 minutes (vs. 10 minutes on bitcoin).
Litecoin’s mining algorithm was originally intended to reduce the effectiveness of special mining tools but later failed. (Even today, litcoin can be mined as a hobby, but the market is dominated by large miners.)
Since then, Litecoin has become a valuable testing base for further testing capabilities of the cryptocurrency.
In 2017, Litecoin introduced the “Isolated Witness” technology, which helps cryptocurrencies add more transactions per block. The first Lightning transaction was made on Light Coin later this year, a development that demonstrated how to use a layered network design.
Who are the Founders of Litecoin?
As we mentioned before, Litecoin was founded by Charlie Lee, who introduced the cryptocurrency early and had a high reputation in the cryptocurrency industry.
Charlie Lee, better known as Chocobo, was the first bitcoin miner and computer scientist to become a software engineer at Google. In addition, Charlie Lee worked as an engineering director at Coinbase from 2015-2017, before moving to another business.
Today, Charlie Lee is an outspoken supporter of cryptocurrency and is the CEO of the Litecoin Foundation, a non-profit organization that works with the Litecoin Core Development team to help develop Litecoin.
In addition to Lee, the Litecoin Foundation has three members on its board of directors: Xinxi Wang, Alan Austin, and Zin Yang, all of whom are self-employed.
What Makes Litecoin Unique?
Litecoin is the second most popular pure cryptocurrency after Bitcoin. This success can be attributed to its simple and obvious benefits.
As of January 2021, Litecoin is one of the most widely accepted cryptocurrencies, and more than 2,000 merchants and stores worldwide now accept LTC.
Its main advantages are speed and economy. Litecoin transactions are usually verified in minutes and the transaction fee is almost low. This makes bitcoin an attractive option for developing countries, where transaction fees are a crucial factor in supporting corrupt currencies.
In late 2020, Litecoin released the Mimble Wimble (MW) test network, which is used to verify confidential transactions on Litecoin based on Mimblewimble. Once this feature becomes available on the main network, Litecoin users will greatly enhance their privacy and conversion capabilities.