It uses a different hashing algorithm to Bitcoin called Scrypt. Scrypt is designed to be more memory-intensive and less susceptible to specialized hardware, making it more decentralized and resistant to mining centralization.
How Does LTC Work?
LTC is built on blockchain technology, which is a distributed public ledger (a digital record of transactions) enforced by a distributed network of computers. All transactions occur independently on the blockchain network. The tasks to manage and maintain LTC occur across the distributed network of computers. Because of this, there is no need for the authority of a central bank.
What is Litecoin (LTC) used for?
1. Transacting without a bank: Cryptocurrency operates as a decentralized digital currency, making peer-to-peer transactions possible without intermediaries. Transactions are recorded on a secure and transparent public ledger, providing increased security and privacy compared to traditional financial systems.
2. Decentralized Finance: Cryptocurrency is a crucial part of the growth of decentralized finance (DeFi), serving as collateral for loans, powering yield farming and staking, and enabling decentralized exchanges. By removing intermediaries, DeFi increases financial accessibility and inclusivity for all.
3. Store of Value: Cryptocurrency is considered by some as a store of value, with Bitcoin being the most well-known example. Its scarcity and decentralized nature make it an attractive investment, with some people using it as a hedge against inflation and market volatility.
4. Payments: Cryptocurrency can be used for paying for goods and services, with merchants accepting it as a form of payment. Transactions are fast, secure, and come with low transaction fees, making it a convenient and cost-effective alternative to traditional payment methods.
5. Borderless Transactions: Cryptocurrency enables cross-border transactions, allowing for fast and secure transfers of value between countries. This is especially beneficial for countries with weak currencies or limited access to traditional financial systems, providing a more efficient and accessible way to send and receive money.
History of Litecoin (LTC)
LTC was founded by Charlie Lee in 2011. He is an MIT graduate and former Google engineer. Like Bitcoin Cash, it is a copy of Bitcoin with slight alterations to the code. The purpose of Litecoin was to offer faster and cheaper transactions. Because of its similarity to Bitcoin, Litecoin is often referred to as the ‘silver to Bitcoin’s gold.
Pros and Cons of Litecoin (LTC)
Decentralized: In the traditional banking system, a bank can decide to freeze your account and seize your assets at any moment. Your identity is also tied to any transaction you make with your bank card. As long as you hold your crypto on a decentralized exchange (DEX) or hardware wallet, it cannot be seized because it is in your custody.
No middleman: Litecoin eliminates the need for middlemen by using decentralized, peer-to-peer networks to facilitate transactions. These networks use distributed nodes to verify transactions, without the need for a central authority or intermediary.
Faster, cheaper transactions: Thanks to their blockchain technology, cryptocurrencies such asLitecoin enable users to make local and global money transfers much quicker than using a bank. TransferringLitecoin is also a lot cheaper than bank transfers.
Opportunities for big gains from investments: The crypto market cap (total value) has skyrocketed over the past decade, with it’s quickest growth in 2021 when it reached $3 trillion. Many crypto stocks are priced below $1 when they are first released and have the potential to increase to hundreds or thousands of dollars like Bitcoin or Ethereum.
Not completely anonymous: A big claim of cryptocurrency is that it is anonymous, so transactions cannot be traced back to your identity. Unfortunately, this is not accurate. Crypto is actually pseudonymous. Your crypto transactions are documented on a public ledger, so it is possible for anyone to trace the trail of the transactions back to you.
Prone to hackers: Because of the earning potential that comes from holding coins likeLitecoin crypto wallets and exchanges are often targeted by cybercriminals who want a piece of the pie.
Volatility: It’s very common to suffer financial losses with cryptocurrency because they do not have a stable price. For example, you could buy a crypto coin at $119 one day only for the price to drop to $5 the next day.
Lack of user protection: Litecoin transactions are irreversible, so there is no way to reverse or cancel a transaction once it has been completed.
Where To Buy Litecoin (LTC)
You can trade Litecoin on major crypto exchange platforms. You are able to buy, sell or use the token for trading on both centralized and decentralized exchanges.
3. Huobi Global
Before buying cryptocurrency, it is important for users to know the risks involved. Because centralized exchanges hold your private keys, you are at risk of losing access to your assets if there is a hack. Holding your cryptocurrency in your own hardware crypto wallet is recommended, but you put yourself at risk of losing your assets forever if you lose your private key or are targeted by hackers unknowingly. In any case, it’s important to do your research before investing in any crypto project; this article is for guidance only and should not be seen as investment advice.
Current supply: 72,176,491 LTC
Max supply: 80,000,000 BCH
As one of the top 10 cryptocurrencies, Litecoin is traded on almost every exchange, giving it high liquidity.
LTC Developer Engagement
LTC Network Speed
Transaction Time: 2-8 minutes