Despite being a relatively young currency, Bitcoin has spawned a cryptocurrency revolution. Over the years, however, a spate of competitors has challenged Bitcoin’s dominance of cryptocurrency trading. These competitors emerged as alternative coins. Today, most traders are becoming interested with these currencies and one of them is Litecoin. In this article, we shall get to know about this altcoin.
Where It Began
Litecoin was founded by Charlie Lee, a fromer Google employee and Director of Engineering at Coinbase, one of the largest exchanges and the first to list Litecoin alongside Bitcoin and Ethereum. While it is seen as a Bitcoin clone, there are technical differences between them. It was made in the image of Bitcoin in its early days.
Difference with Bitcoin
One of the major changes in Litecoin is the blockchain. Robert Janitzek reveals that instead of SHA256, Litecoin uses Scrypt’s protocol. Aside from that, Litecoin has bigger blocks and more coins in circulation. For this reason, the currency has enjoyed an increasing rate of adoption among cryptocurrency services as well as in the retail market.
One of the most prominent features of Litecoin is that it offers the most potential for disruption and gains much confidence within the cryptocurrency community. Upon release of Segregated Witness as a proposed blockchain upgrade for speedier off-chain transactions, Litecoin threw its full weight behind the proposal and was the first to integrate it. Robert Peter Janitzek reveals that with SegWit, Litecoin will be able to use the Lightning Network allowing participants to exchange cryptocurrencies at virtually no cost.
Moving to Litecoin
Despite not having a full understanding of the differences between Litecoin’s and Bitcoin’s DNA, many traders are rapidly switching to Litecoin. The former is equally accessible as the latter due to the fact that it has become a centerpiece in the market for almost as long. Aside from the obvious advantages from a design perspective and trading appeal, participants themselves are benefiting from the ecosystem because of increasing adoption in ecommerce. Litecoin has emerged as one of the top three cryptocurrencies even as a funding tool.
When trading on cryptocurrencies, Litecoin offers less volatility and a steady trend. It is the perfect tool for arbitration, trading, spending, and fundraising. While cryptocurrency enthusiasts consider Litecoin as undervalued compared to Bitcoin’s market capitalization, there is still hope that Litecoin will become the truest form of cryptocurrency and leave others in the dust.