As the cryptocurrency trend keeps expanding globally, more and more people are now embracing crypto-investment for instance buying cryptocurrencies. Among hundreds of cryptocurrencies available on the market now, Litecoin is one of the crypto-coin which is quite popular among investors.
The creation of Litecoin has been closely related to Bitcoin. While the true identity of the creator of Bitcoin, Satoshi Nakamoto remains an unsolved puzzle, Charlie Lee, the creator of Litecoin lived a very active life on various social media platform and his blog. As a former Google employee, Charlie devoted himself in a quest to fulfil his vison of creating a lighter version of Bitcoin(BTC).
Since the functions of Litecoin are almost identical with Bitcoin, the primary difference between them are the cost of transactions, which is only around 1/50 of the size. Due to the vast difference in price, Bitcoin often being seen as gold for its storing value and long term purpose and Litecoin on the other hand was seen as silver. This is because Litecoin is more suitable for day-to-day use and transaction due to its more rational pricing and it often seen as having a more sustainable future than Bitcoin(BTC). Another really cool thing about Litecoin is that since its value is closing related to the demand of the coin on currency exchange site such as Coinbase, GDAX and Bitfinex, a shopping platform with product constantly changing price as a reflection of the value of the accepted coin is possible to be envisioned.
Besides the monetary value, the differences between Litecoin and Bitcoin can be discovered through mining. Both bitcoin and Litecoin are generated through mining and a key difference between them is that Litecoin only needs 2.5minutes to generate a block as opposed to 10 minutes from Bitcoin. Besides, Bitcoin and Litecoin utilises different work algorithm. The SHA-256 algorithm in Bitcoin can perform calculation at a much higher efficiency using parallel processing. Litecoin however, uses scrypt (pronounced as “script”) algorithm, which is an algorithm incorporating the SHA-256 algorithm but are more serialised.
To gain a deeper and more comprehensive understanding on Litecoin, here is a PDF of Litecoin Whitepaper attached for reading purpose. We have also included a Youtube video about the creation of Litecoin.