What is Litecoin?
Let’s be honest.
There are quite a few digital currencies out there.
At this point, most investors have already learned a thing or two about a few of these digital currencies. Bitcoin has been talked about on almost every major news channel, from Fox News to Bloomberg. Its peer, Ethereum, is featured almost as frequently.
But what of the other digital currencies on the market?
Today, the Token Authority team wanted to look at some of these other cryptos.
Actually, we want to talk about one in particular: Litecoin.
Litecoin, all too often referred to as the silver to Bitcoin’s gold, was one of the earlier digital currencies on the market.
Over the course of 2017, it grew dramatically along with its peers, before falling alongside of the rest of the market.
That said, Litecoin has a lot of cool features. And it’s these features that make Litecoin a token investors should keep an eye on.
So let’s review the basics.
Where Did Litecoin Come From?
Often hailed as the silver to Bitcoin’s gold, Litecoin is a powerhouse digital currency in today’s developing digital currency market.
The digital token was founded in 2011 by ex-Google engineer Charlie Lee.
Before founding Litecoin, Lee worked on various Google projects, including YouTube.
In his time in the digital currency space, Lee also served as the Director of Engineering at Coinbase. In 2017, Lee left Coinbase to focus solely on the development of Litecoin.
Lee's active engagement in the digital currency space helped Litecoin amass its own group of loyal followers.
In the nascent days of the digital currency market (2008–2012), Litecoin gathered supporters who defected from Bitcoin. In 2017, it became a major talking point for new investors trying to find the next Bitcoin.
That said, it's important to point out that Litecoin and Bitcoin are very different despite being based on the same protocol.
Both are intended to act as peer-to-peer currencies, but Litecoin offers users unique benefits.
Let’s take a deeper look at those benefits.
The Benefits of Litecoin
As a peer-to-peer currency, Litecoin offers investors quite a few benefits.
And the first of those benefits is transaction speed.
According to Litecoin’s developers, Litecoin is faster than Bitcoin.
It takes 10 minutes to generate a new block on the Bitcoin blockchain. Litecoin can do the same task in 2.5 minutes.
This speedy transaction time has helped Litecoin capture the interest of true digital currency enthusiasts seeking the optimal peer-to-peer currency.
Outside of transaction speed, the two digital currencies also operate using different mining algorithms.
For those newer to the digital currency and blockchain market, the mining algorithm is how transactions are validated and then added to a block within the digital currency’s blockchain.
This is certainly a more technical topic, but it matters to investors because a digital currency’s mining algorithm can influence adoption and long-term survival.
Litecoin uses the computing language scrypt in its proof-of-work algorithm.
Because of this mining algorithm, the hardware (ASIC chips) needed to mine Litecoin can be more cost-intensive to produce than the ASIC chips used to mine Bitcoin.
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Other Reasons Litecoin Appeals to Investors of Peer-to-Peer Currencies
Outside of multiple structural differences, Litecoin also could appeal to investors because of its community.
Over the last couple years, the Bitcoin community has existed in a state of discord.
Grappling with scaling issues and bloated by miner opinion, the Bitcoin Core struggled to reach consensus on multiple major decisions.
Litecoin, on the other hand, adopted scaling solution SegWit2x without issue.
That means for those looking for a Bitcoin alternative, Litecoin could be a good option.
And if you’re interested in learning more about other digital currencies, make sure to navigate to the main page of our Coin Index.
We designed our Coin Index to help investors like you navigate the rapidly developing digital currency market.
Our Coin Index is completely free and an invaluable tool to new investors. To find it, just click here.
Best of luck with your investments.