Litecoin is a point-to-point digital currency (P2P) that is based on open software and that hit the market in 2011 as a complement to Bitcoin. Little by little it is becoming an anonymous cryptocurrency used by more and more users, mainly due to the simplicity with which these types of currencies can be generated, much lower than that of Bitcoin.
Although if we talk about digital currencies or cryptocurrencies right away Bitcoins come to mind. But it is not the only one that has been available on the market, far from it, for a couple of years, Ethereum has become a serious alternative to BitcoinAlthough if we base ourselves on the value of each of these currencies, there is still a long way to go to be a real alternative to Bitcoin, a currency that has become a form of payment in some of the large companies such as Microsoft, Steam, Expedia, Dell, PayPal to name a few examples.
In this article we are going to show you everything you need to know about Litecoin, what it is, how it works and where to buy it.
Table of Contents
What is Litecoin
Litecoin, like the rest of digital currencies, is an anonymous cryptocurrency that was created in 2011 as an alternative to Bitcoin, based on a P2P network, so at no time is it regulated by any authority, as if it happens with the official currencies of all countries, hence its value varies according to demand. The anonymity of this currency allows hide identity at all times of the people who carry out the transaction, since it is carried out through an electronic wallet where all our currencies are stored. The problem with these types of coins is the same as always, since if they rob us, we have no way of knowing who has emptied our purse.
The blockchain, better known as blockchain, of Litecoin is capable of handling a greater volume of transactions than Bitcoin. Because block production is more frequent, the network supports more transactions without the need to modify the software continuously or in the near future. Thus, merchants get faster confirmation times, maintaining they have the ability to wait for more confirmations when they sell more expensive items.
Differences between Litecoin and Bitcoin
Being a derivative or fork of Bitcoin, both cryptocurrencies use the same operating system and the main difference is found in the number of issue of millions of coins, located in the case of Bitcoin at 21 million, while the maximum limit of Litecoins is 84 million, 4 times more. Other differences are found in the popularity of both currencies, while Bitcoin is widely known, Litecoin is little by little making a dent in this market for virtual currencies.
Another difference is found when it comes to obtaining virtual currencies. While Bitcoin mining uses an SH-256 algorithm, which requires very high processor consumption, the Litecoin mining process works through a scrypt that requires a large amount of memory, leaving aside the processor.
Who created Litecoin
A former Google employee, Charlie Lee, is the one behind the creation of Litecoin, given the lack of alternatives in the virtual currency market and when they had not yet become a common currency for any type of currency. transactions. Charlie was based on Bitcoin but with the intention of convert this currency into a means of payment that was stable and not depend excessively on the exchange houses, something that as we have been able to verify it does not happen with Bitcoin.
So that this currency was not affected by speculation, the method to obtain them is much simpler and more equitable, so that as they are created, the process is not complicated or reducing the number of available currencies. Bitcoin is designed to handle up to 21 million coins, while in Litecoin there are 84 million coins.
How do I get Litecoins
Litecoin is a fork of Bitcoin, so the software for start mining Bitcoins is practically the same with minor modifications. As I have discussed above, the reward for mining Litecoins is more profitable than Bitcoin. Currently for each new block we receive 25 Litecoins, an amount that is reduced by half every 4 years approximately, a much lower amount than what we find if we dedicate ourselves to mining Bitcoins.
Litecoin, like all other cryptocurrencies, is an open source software project published under the MIT / X11 license that allows us to run, modify, copy the software and distribute it. The software is released in a transparent process that allows independent verification of the binaries and their corresponding source code. The necessary software to start mining Litecoins can be found in the Litecoin official page, and is available for Windows, Mac, and Linux. We can also find the source code
The operation of the application has no mystery, since we only have to download the program and he will just start doing his job, without our having to intervene at any time. The application itself gives us access to the wallet where all the Litecoins that we are obtaining are stored and from where we can send or receive these virtual currencies in addition to consulting all the transactions that we have carried out so far.
Another way to mine Litecoins without investing in a computer, we find it Scheriton, a cloud mining system With which we can also mine Bitcoins and Ethereum. Scheriton allows us to establish the amount of GHz that we want to allocate to mining, so that we can buy more power to obtain our Litecoins or other virtual currencies more quickly.
Advantages and disadvantages of Litecoin
The advantages that Litecoin offers us are practically the same that we can find with the rest of virtual currencies, such as security and anonymity when carrying out any type of transaction, the absence of commissions since transactions are made from user to user without the intervention of any regulatory body and the speed, since the transfers of this type of currency with instantaneous.
The main problem that this currency faces today is that it is not as popular as Bitcoin can be today, a currency that almost everyone knows. Fortunately, thanks to the popularity of this currency, the rest of the alternatives available in the market are becoming more and more used by users, although at the moment they are not at the level of Bitcoin, a currency that some large companies have already started to use. use as a payment method.
How to buy Litecoins
If we do not intend to start mining Litecoins, but want to enter the world of anonymous virtual currencies, we can choose to buy litecoins through Coinbase, the best service currently allows us to carry out any type of transaction with this type of currency. Coinbase offers us an application to consult our account at any time for both iOS and Android, an application that offers us detailed information on the possible fluctuations suffered by the currency.
In order to buy this virtual currency, we must first add our credit card or do it through our bank account.