We discussed the fundamental analysis of Litecoin in the following article. Litecoin is one of the oldest currencies in the crypto market. Litecoin is one of the oldest altcoins that was introduced to the market in October 2011. To learn more about Litecoin and its differences with Bitcoin, stay with us on Pooyan Mokhtari‘s site.
Litecoin is a fork of Bitcoin that was created by making changes in its code. In the digital currency market, Bitcoin is compared to gold and Litecoin is compared to silver.
Litecoin has cooperated with big companies, such as Beam software development company. Litecoin worked with the company to find and implement a new protocol for better privacy as well as scalability. After two days of this cooperation, the price of Litecoin increased by 40%.
For several years, Litecoin was the second digital currency after Bitcoin. The price of these two currencies is dependent on each other.
The maximum number of bitcoins that will be produced is 21 million coins. But the maximum amount of Litecoin that is going to be produced is 84 million Litecoins. This amount can be compared to the rarity of gold compared to silver.
Finally, like Bitcoin, Litecoin faces the problem of scalability. It should use a lightning network like Bitcoin. This shows that Bitcoin is ahead of Litecoin in this regard.
Like Bitcoin, Litecoin is a digital currency that can be mined. The mining reward for each Litecoin block was equal to 50 Litecoin coins at the beginning of its introduction to the market, but after some time, this amount decreased. This bonus is halved every 4 years. Currently, the reward for mining is 25 coins.
Bitcoin uses the SHA-256 algorithm in the mining process, but Litecoin uses a new algorithm called Script. This leads to the fact that Litecoin mining requires less electricity than Bitcoin.
The algorithm used in this network is proof of work. The design of the Litecoin network is such that 84 million coins will be produced at the end, which will greatly help to reduce the inflation of Litecoin.
In the Litecoin network, a new block is generated every 150 seconds. But in Bitcoin, a new block is produced every 10 minutes. The duration of block creation in Litecoin is 4 times faster than Bitcoin.
The main goal of the Litecoin network is to provide a decentralized payment program with the highest speed and lowest fees. The speed of confirming transactions in Litecoin is 4 times that of Bitcoin. Its transaction fees are also much lower than Bitcoin.
Companies that are looking for a decentralized payment program with the highest speed, lowest fees and high security can install the Litecoin program using plugins on their website so that their customers can make their payments with Litecoin. Do.
Atomic exchange means instant conversion of Litecoin to Bitcoin without waiting for transaction confirmation. So, atomic exchanges increase the usage of Litecoin and make it a practical currency.
By examining the market cap, it can be concluded that the currencies whose goal is to provide a high-speed payment system with low fees have a very large share in the crypto market and important currencies go to you.