In 2009, Satoshi Nakamoto launched bitcoin as the world’s first cryptocurrency. The code is open source, which implies it may be modified by anybody and freely used for different projects. Many cryptocurrencies have launched with modified variations of this code, with various ranges of success.
Litecoin was announced in 2011 with the aim of being the ‘silver’ to bitcoin’s ‘gold’.
Here’s some information to show you the essential distinction between bitcoin and litecoin.
|Max Coins||21 Million||84 Million|
|Mean block time||10 minutes||2.5 minutes|
|Difficulty retarget||2016 block||2016 blocks|
|Block reward details||Halved every 210,000 blocks.||Halved every 840,000 blocks|
|Initial reward||50 BTC||50 LTC|
|Current block reward||12.5 BTC||25 LTC|
|Created by||Satoshi Nakamoto||Charles Lee|
|Creation date||January 3rd, 2009||October 7th, 2011|
Identical to bitcoin, litecoin is a crytocurrency that’s generated by mining. Litecoin was created in October 2011 by former Google engineer Charles Lee. The motivation behind its creation was to improve Bitcoin. The important thing distinction for end-users being the 2.5 minute time to generate a block, versus bitcoin’s 10 minutes.
The main difference is that litecoin can confirm transactions much faster than bitcoin. The implications of which might be as follows:
- Litecoin can deal with a better quantity of transactions thanks to its faster block generation. If bitcoin were to try to match this, it would require significant updates to the code that everybody on the bitcoin community is at the moment operating.
- The drawback of this larger quantity of blocks is that the litecoin blockchain will likely be proportionately larger than bitcoin’s, with more orphaned blocks.
- The faster block time of litecoin reduces the risk of double spending assaults – that is theoretical within the case of each networks having identical hashing energy.
- A merchant who waited for a minimum of two confirmations would only want to attend 5 minutes, whereas they would have to wait 10 minutes for just one confirmation with bitcoin.
Watch this video below for more reasons why it is important to look at these as potential investments.