Litecoin cryptocurrency features
The cryptocurrency Litecoin is a relatively popular branch of Bitcoin, which many often call ‘digital silver.’ This cryptocurrency is noteworthy in that it became one of the first currencies with support for the SegWit protocol. Although Litecoin used to have a high transaction confirmation rate compared to others, the Segregated Witness protocol further increased this indicator. But this is not the end of the development of the currency, and it continues to move forward rapidly.
It is noteworthy that Litecoin overshadowed a number of other cryptocurrencies. This was noticeable, because one ‘coin’ had a price of only three dollars. But March 2017 was marked by a rise in prices, and by September one “coin” was worth ninety dollars. Although it gradually dropped to the level of fifty dollars.
This currency uses scrypt. This function is responsible for generating the so-called key, which may require a fairly impressive amount of memory. This differs from the SHA-256 in technical terms. The issue of Litecoin represents as many as 84 million crypto coins. The reward for the found “block” is fifty coins, but it is halved after every one hundredth of the issue – eight hundred and forty thousand blocks. The average time it takes a block to generate a network takes two and a half minutes.
History of occurrence
The creator of Litecoin is Charles Lee, a San Francisco programmer. He decided to form an alternative to Bitcoin, this idea was successfully implemented through the launch of the project in October 2011. The basis for creating the currency was taken program code Bitcoin.
The LTC cryptocurrency is in constant operation due to the large number of copies of the client program, whose source code was published a week before the start of the plan. The client program itself guarantees security, and its new version has SegWit support.
In addition to the price increase for Litecoin in March 2017, a similar situation occurred in 2013, when in just a day the cost increased by 100 percent.
Features and principle of operation
The cryptocurrency Litecoin is endowed with a whole list of features.
- Block chain. This allows you to process a much higher volume of transactions compared to the ‘big brother’ – Bitcoin. This is achieved by increasing the frequency of generation of new blocks, which allows you to maintain a larger volume of operations without changing and, if necessary, change it in the future.
- Wallet Encryption Encryption allows you to protect yourself from scammers. Because of this, you have to enter a password every time a cryptocurrency is spent. The user also has the ability to view transactions and account balance. Encryption protects against various viruses that can steal a wallet.
- Reward. At the moment, for the formed block ‘miners’ receive twenty-five ‘coins’. According to statistics, the number of coins is halved every 4 years of the project.
- Mining Litecoin. The Litecoin mining algorithm is similar to the mining algorithm of the most famous bitcoin cryptocurrency. The main difference is the intensive operation of RAM during mining of Litecoin, therefore it is advisable to use ordinary computers with video cards instead of machines with powerful specialized CPUs, for which development becomes quite problematic. The maximum number of “coins” is 84 million, which is almost four times the corresponding number of Bitcoin coins.
It can also be noted that Litecoin is written in the C ++ programming language. Among the supported operating systems are such as Windows, Mac OS X and Linux, and many others.
Although the source code of Bitcoin is based on Litecoin, there are still differences, and in some cases are significant. The main ones can be distinguished:
- More efficient use of the computer’s central processing unit (CPU) than video cards (GPUs), which is fundamentally different from Bitcoin;
- Due to the increased block generation speed, the transaction is quite fleeting and takes no more than 150 seconds;
- In the wallet there is an opportunity for mining, while in SOLO mode or pool;
- Mining complexity is recounted much faster than Bitcoin and is three and a half days;
- The issue is four times that of BTC and is eighty-four million coins.
But there are also similarities with Bitcoin, which is just due to one code foundation. Among the similarities can be noted:
- Mining in the same way, albeit with the help of different functions;
- There is no external control due to the decentralized type of network;
- In both cryptocurrencies there is a restriction on the issue of coins;
- Anonymity of both wallet owners and miners. Complete freedom to manage funds in your wallet;
- The transaction is not possible to cancel.
Thus, we can say that the differences from Bitcoin make Litecoin a distinctive digital currency that can prove itself in the future.
Litecoin has a rather complicated history. Initially, the price was low enough for cryptocurrency, and amounted to about three dollars. In November 2013, the exchange rate was sharply destabilized, and the price of Litecoin increased by 100% in US dollars. In 2017, the price also increased sharply to $ 90, after which it dropped to 50. At the moment, the cryptocurrency once again surpassed the threshold of seventy US dollars. In rubles this amounts to about four thousand rubles per one “coin”.
Litecoin’s prospects are quite convincing, because with the introduced SegWit protocol, the price has risen sharply. The same protocol increases the speed of transactions, which may attract new users and investors. In this regard, the price of the ‘coin’ may rise.
Many analysts believe that next year, 2018, the price of Litecoin will be about the same as the current price of Ethereum, which is three hundred dollars. These are quite bright prospects for Litecoin, which may well become a reality.
Cryptocurrency Litecoin has its own client program, which is a wallet. Cryptocurrency itself exists on the basis of the Blockchain system. The wallet is called Litecoin Core and it is best to use it just because this wallet is the only official one. It also has a security system that, thanks to encryption, prevents theft of wallet viruses. In addition, a set of protocols that allowed the price of a “coin” to fly, tied just to this client program.
Exchange, purchase, how to receive
Like any other cryptocurrency, Litecoin can be mined, which is for many the main way to receive it. For the exchange they use exchangers. The best option is to use monitoring of such services. Recognized monitoring is considered BestChange, which has been functioning properly for more than ten years. The administration carefully checks the exchangers before adding them to the database.
Ways to Earn Lightcoins
There are three main ways to earn Litecoin.
- Mining Litecoin is still in its heyday, as was Bitcoin once. Using the processing power of your personal computer, it is still possible to generate new coins, the more specialized machines are not so successful in developing this particular cryptocurrency.
- Cloud mining Litecoin. The client rents the computing power that Litecoin uses to generate “coins”. However, this is a controversial decision. After all, this practice means that lessors of personal computers receive more profit than the extraction of Litecoins.
- Litecoin cranes. Cranes are advertising sites where the user must enter a captcha and receive a small amount. It is difficult to call it a serious income, because for the whole day you can get only a couple of dollars at best.
Summing up, we can say that active mining remains the main method of production.