Cryptocurrency has become tremendously popular ever since the coming of Bitcoin. Few people understand exactly how they work, but many have heard of the word Bitcoin or Litecoin at least once in their lives.
A cryptocurrency is a decentralized type of currency that allows people to trade freely without an overseeing eye such as the bank. This happens when everyone on the blockchain network has a log that contains every transaction that ever happens. It is constantly updated when a new transaction happens.
Litecoin vs. Bitcoin: The Difference
The two major cryptocurrencies in the market are Bitcoin and Litecoin. Here are some of the significant differences between these two cryptocurrencies.
The two crypto entities have different market caps with Bitcoin being at the forefront. Bitcoin has over sixty-seven billion market shares while Litecoin has less than three billion in market shares of the whole cryptocurrency market. This goes to show that Bitcoin is the biggest player in the crypto industry.
The time it takes to carry out a successful transaction between the two coins is significantly different. Bitcoin takes up to ten minutes to carry out a successful transaction while Litecoin only takes two and a half minutes, give or take. This has been a significant reason why people gravitate towards Litecoin since it’s faster and more efficient. Merchants on the dark web also prefer Litecoin due to the same reason.
The two coins run on different algorithms to support the whole blockchain infrastructure. Bitcoin employs a SHA-256 algorithm while Litecoin uses a particular type of algorithm known as Script.
Maximum Number of Coins
There is a predetermined number of coins that exist in every blockchain. For Bitcoin, the number is twenty-one million, and for Litecoin, the number is eighty-four million coins in the blockchain.
Mining is the process of continually updating logs of the transaction on the blockchain. This process consumes a lot of processing power and electricity, and the techniques used are also different. Individuals can easily collect their cryptocurrency on a personal wallet provided on sites such as the Nakitcoins website. For Bitcoin, the mining method used is called Application-Specific Integrated Circuits (ASICS) while Litecoin can be mined by a standard CPU and GPU.
Bitcoin was created by an anonymous person going by the name of “Satoshi Nakamoto,” whom to this date has never been discovered, while Charlie Lee created Litecoin. People have been speculating that the American government is heavily involved in the anonymous nature in which the coins came to exist. It is also claimed that Satoshi is of Asian origin, however, some online users argue differently.
The gift for mining is divided in half at earlier determined points of time. Bitcoins are cut in half every 210,000 blocks while Litecoins are halved every 840,000 blocks.
Interest in crypto is steadily increasing because this type of currency provides things that national fiat currencies cannot match including deregulation, anonymity, and decentralization transaction transparency. The main difference between Bitcoin and Litecoin is the different cryptographic algorithms used to develop them. However, Bitcoin is best for storing value while Litecoin is best for transactions.