What is Litecoin (LTC)?

Website: https://litecoin.org/

Max Supply: 84.000.000 LTC

Circulating Supply: 66.752.415 LTC

Total Supply:  66.752.415 LTC

Explorer: Litecoin Explorer

Whitepaper: Litecoin Whitepaper

What is Litecoin (LTC)?

Litecoin (LTC) was released as open source on GitHub on October 7, 2011 by Charlie Lee, Director of Engineering, a former Google employee. Charlie Lee designed Litecoin by taking the Litecoin core code from Bitcoin and solving some problems such as transaction times, fees, and mining pools. Litecoin is one of the oldest coins in the cryptocurrency market. Because of their similarities, Bitcoin is called "gold" in the market, while Litecoin is called "silver". During the month of November 2013, Litecoin's total value experienced massive growth, including a 100% jump within 24 hours. Although Litecoin uses the same protocol as Bitcoin, it has its own Blockchain network and is cheaper and faster than Bitcoin.

Features of Litecoin

Like Bitcoin, Litecoin is a peer-to-peer cryptocurrency and aims to be an important alternative in the global digital payment system. Like all cryptocurrencies, Litecoin is not issued by a government, which has historically been the only entity society has relied on to issue money. Instead, like Bitcoin, Litecoin operates on an open-source decentralized network without a central authority. Compared to traditional currencies, Litecoin, like other cryptocurrencies, has a fixed supply. The total number of Litcoins that can be produced has been determined as 84 Million.

Litecoin is a digital currency that can be used anywhere and by anyone (except for countries that consider it illegal). Litecoin is designed in a system as simple as sending an email.

The rise in popularity of Litecoin and other cryptocurrencies is largely in response to demand for alternative currency options to differentiate themselves from central banks and governments. Investors and traders who realize the high potential that cryptocurrencies can offer make up a large part of this demand.

HOW IS LITECOIN MINING DONE?

Although there are many similarities with Bitcoin, Litecoin has some differences in terms of mining algorithm. It creates a significant advantage in favor of Litecoin due to differences such as fee, cost and speed. Litecoin has a transaction cost of approximately 1/50 compared to Bitcoin. For many cryptocurrency investors and analysts, Litecoin pricing is more rational and more sustainable than Bitcoin.

One of Litecoin's main goals was to keep the block confirmation time shorter than Bitcoin, so that every two and a half minutes (10 minutes for Bitcoin) on its network, a block was produced to be recorded on the Blockchain network. This block is verified by the miners system. In order to encourage miners, a reward mechanism has also been developed in the Litecoin system. The first miner to successfully verify a block was initially rewarded with 50 Litecoins. However, as in every decentralized currency, in order to keep supply and demand in balance, halving is required in Litecoin. The halving process, as will be remembered from Bitcoin mining, is to reduce the reward paid to miners for helping block production by fifty percent. The reason for reducing the reward by half is to prevent possible inflation. Like Bitcoin halving, the Litcoin halving takes place every four years. The reason for this is to prevent the inflation that may occur in Litecoin and to make Litecoin a more valuable crypto currency. The Litecoin block reward, which was originally 50 LTC, was first reduced to 25 LTC with the halving in 2015. The second block reward halving took place on August 6, 2019, and the mining reward from 25 LTC was reduced to 12.5 LTC. Litcoin's next block reward halving will take place in 2023.

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