What is Litecoin (LTC)? Here's the Definition and Advantages!

Litecoin (LTC) is one of the oldest and most popular cryptocurrencies in the world, offering high speed, security, and availability. Litecoin is often referred to as Bitcoin's "little brother", as it shares many similarities with the first cryptocurrency.

On the other hand, Litecoin also has some differences and advantages of its own. This article will discuss what Litecoin is, how it works, and what are its advantages.

What is Litecoin (LTC)?

Litecoin (LTC) is a decentralized and open-source digital asset, which was created in October 2011 by Charles "Charlie" Lee, a former Google engineer. Litecoin is inspired by Bitcoin, and uses the same protocol with some modifications. Litecoin's main goal is to become a fast, cheap, and efficient peer-to-peer payment method, without involving any third party or central authority.

Litecoin has several key features that set it apart from Bitcoin, such as:

The faster block formation time, which is 2.5 minutes, compared to Bitcoin's 10 minutes. This allows Litecoin transactions to be confirmed faster and has a larger network capacity.
The maximum supply is higher, which is 84 million LTC, compared to 21 million BTC. This makes Litecoin more accessible and more affordable for users.
A different proof-of-work (PoW) algorithm, namely Scrypt, is compared to Bitcoin's SHA-256. The Scrypt algorithm is designed to make Litecoin mining more accessible to individuals, by reducing reliance on specialized hardware such as ASICs. However, ASICs for Litecoin mining have also emerged over time.

Litecoin has also been a testing ground for several technological innovations later adopted by Bitcoin, such as Segregated Witness (SegWit) and the Lightning Network. SegWit is a solution that improves network scalability by separating transaction data from witness data, thereby increasing block space and reducing transaction costs.

While Lightning Network is a second layer protocol that allows instant and almost fee-free transactions between two parties, using payment channels connected to the main network.

How Litecoin (LTC) Works

Litecoin works in a similar way to Bitcoin, using a peer-to-peer network system consisting of nodes that communicate with each other and verify transactions. Litecoin transactions are recorded in data structures called blocks, which are connected to each other in a chain called the blockchain. The Litecoin blockchain serves as a public ledger that stores all transactions that have ever taken place on the network.

To generate new blocks and validate transactions, Litecoin uses a consensus mechanism called proof-of-work (PoW), which requires miners to solve difficult mathematical problems using computing power. Miners who successfully solve the problem will be rewarded with a certain amount of newly created LTC and transaction fees collected in the block. Litecoin's current block reward is 12.5 LTC, and will decrease once every four years, until it reaches zero around 2140.

Litecoin transactions are sent from one address to another, which is a randomly generated alphanumeric string and represents the identity of a user on the network. Litecoin addresses start with the letter L or M, and are usually 26-34 characters long. Users can also use a newer address format, called Litecoin Cash Address (LCA), which starts with the letters ltc1, and is 42 characters long. LCA is designed to be SegWit compatible and reduce shipping errors.

To send and receive Litecoin transactions, users need a Litecoin wallet, which is software or hardware that stores a user's private key or public key.

The private key is the secret code used to access and manage user funds, while the public key is the code used to receive funds from other senders. Litecoin wallets can be web, desktop, mobile, or hardware applications, depending on the level of security and convenience the user desires.

Advantages of Litecoin (LTC)

Litecoin has several advantages that make it stand out among thousands of other cryptocurrencies, such as:

Speed

Litecoin offers very fast transactions, with an average confirmation time of just 2.5 minutes, compared to Bitcoin's 10 minutes. This makes Litecoin ideal for everyday payments and microtransactions, without the need to wait long.

Low Cost

Litecoin has very low transaction fees, with an average of only about $0.02 per transaction, compared to Bitcoin's $10. This makes Litecoin more cost-effective and efficient, especially for transactions with small values.

Availability

Litecoin has a higher maximum supply than Bitcoin, which is 84 million LTC, compared to 21 million BTC. This makes Litecoin more accessible and more affordable for users, without the need to buy small fractions like satoshis.

Innovation

Litecoin has been a pioneer in adopting several technological innovations that improve network performance and functionality, such as SegWit and Lightning Network. This makes Litecoin more scalable and flexible, as well as opening up opportunities for integration with other projects.

Conclusion

Litecoin (LTC) is a decentralized and open-source cryptocurrency, designed to be a fast, cheap, and efficient peer-to-peer payment method. Litecoin has a lot in common with Bitcoin, but it also has a number of its own differences and advantages, such as faster block formation times, higher maximum supply, different PoW algorithms, and continuous technological innovation.

How to Buy LTC on Bittime

You can buy and sell LTC in an easy and safe way through Bittime. Bittime is one of the best crypto applications in Indonesia that has been officially registered by Bappebti. LTC is available on Bittime with LTC IDR pairing.

To be able to buy LTC/IDR tokens on Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have enough balance by depositing some funds into the wallet. For your information, the minimum purchase of Bittime assets is IDR 10,000. After that, then you can make LTC purchases in the application. Complete Guide on How to Buy LTC on Bittime.

Monitor the price chart movements of Litecoin (LTC), Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

Also Read:

What is Layer 1 Blockchain? How Layer 1 Crypto Works and Lists

What is Bitcoin Dominance (BTCD)?

Zcash (ZEC): A Cryptocurrency That Offers Advanced Privacy

DISCLAIMER: This article is informational in nature and does not constitute an offer or solicitation to sell and buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices may change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.

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