The advent of blockchain and Bitcoin paved the way for the creation of several other cryptocurrencies and altcoins, and it is amazing to see that it keeps getting better, because a great number of the coins are gaining traction and as such, their value keeps appreciating. Altcoins refer to coins that function as alternatives to Bitcoin, and for this post, we are putting Litecoin against Bitcoin, and comparing them for clarification.
Bitcoin came and was faced with a lot of scepticism, but over time, it was able to enjoy some exponential increase in value, however, some flaws were noticed in Bitcoin, and that resulted in the fork that produced Litecoin. Even though their properties may be similar, they have some notable differences too.
Back in 2011, two years after Bitcoin was introduced, there was a fork in the Bitcoin blockchain, and with the help of an open-source client, Litecoin was created. Litecoin is one of the leading altcoins in the crypto world, and that is due the fact that it is a modification of Bitcoin, and sort to deal with its flaws. It is decentralized, and that translates to the fact that there is no central authority to interfere or determine how users of the altcoin carry out their transactions and operations. It may interest you to note that the transfer and creation Litecoin is dependent on a cryptographic protocol that is open source. Here are some of the features packed with Litecoin:
- Enhanced storage efficiency
- Improved and faster transaction
- Zero or near-zero transaction fees
- Industry integration
- Litecoin debit/credit card
In order to create s system that will promote economic independence, blockchain and Bitcoin was created, and they were designed to function as a digital currency, as envisaged by Bitcoin’s creator, Satoshi Nakamoto. In 2009, so many people refused to accept the crypto for anything, however, over time, the value began to pick up, and 10 years later, it is still one of the most valuable cryptocurrency to invest in. The digital currency was created based on a source code that used algorithms and cryptography for its creation. Bitcoin has some basic features, and they include:
- Mobile payments
- Quick transactions
- Low transaction fees
Total Amount of Coins
- Litecoin’s maximum supply of coins is fixed at 84,000,000 LTC.
- Bitcoin’s maximum supply of coins is fixed at 21,000,000 BTC.
If we want to go by theories, then there is the room for assumptions about Litecoin having some advantage over Bitcoin, however, it does not function that way in the real world.
- At the time of writing this article, Litecoin had a market capitalization of $5,501,100,211
- At the time of writing this article, Bitcoin’s market capitalization was $139,630,413,132
It is obvious that there is a huge gap between Bitcoin and Litecoin, as there market capitalizations are far apart.
In order for Litecoin to function the way it does, and have enhanced features over Bitcoin, the altcoin uses the Scrypt algorithm. On the other hand, Bitcoin makes use of the SHA-256 algorithm.
When carrying out transactions on the Litecoin blockchain, the confirmation that the transaction is successful takes nothing more than 2.5 minutes. For Bitcoin, it is more, as the confirmation exceeds 10 minutes in some cases.
There are no doubts about the fact that both coins are good, however, it is imperative to do some research if you intend to invest in any, or better still, you can have both in your crypto investment portfolio. Both coins are performing well on the market, because more people and businesses are beginning to adopt cryptocurrencies for different purposes.