What is the Difference between Litecoin and Bitcoin?
Over the past few years, people’s interest in cryptocurrencies has increased significantly. The most popular one was Bitcoin, which became a trendsetter for all currently known cryptocurrencies, however, many other coins have appeared since then. Among them, there is one which gains in popularity – Litecoin. Interestingly, there are many similarities between Bitcoin and Litecoin, and while the former is being called ‘crypto-gold’, the latter is labeled as ‘crypto-silver’. Nevertheless, they are still different in some aspects, and if you are curious about these differences, come and visit Tokeneo, a website about cryptocurrencies. Similarly to other cryptocurrencies, Litecoin is a digital and global payment method which uses the blockchain technology in order to send or trade coins. It was created in 2011 by Google’s computer scientist, Charlie Lee, under the MIT/X11 license as a coin working in peer-to-peer network. It is considered to be just an extension, or even a variation of Bitcoin, and that is why Litecoin belongs to the group of Altcoins. However, Litecoin uses a different type of blockchain, which provides it with better and quicker transfer of data, and, furthermore, it is a decentralized currency, and it uses open-source software. One of the biggest differences between Litecoin and Bitcoin are disparate cryptographic algorithms; Bitcoin uses traditional SHA-256 algorithm, but Litecoin makes use of fairly new Scrypt, and it influences how fast we can mine coins. Litecoin’s algorithm allows us to mine one coin every 2.5 minutes, four times quicker than Bitcoin’s one coin per 10 minutes. Despite this, they both use computing power algorithms in order to process transactions, which are being verified by miners, who then get coins in exchange. Another distinction between these two cryptocurrencies is their market capitalization; at the end of 2018 it was $109 billion for Bitcoin and only $3.05 billion for Litecoin. Additionally, the possible quantity of coins in our possession is different as well; it amounts to 21 billion coins for Bitcoin, but as many as 84 billion coins for Litecoin. All these differences show us how diverse the world of cryptocurrencies can be, and how quickly it can change. Even though Bitcoin is a currency which has been on top for years, Litecoin has many followers who believe in its potential and up-to-date technology it uses.