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    Litecoin short review: pros and coins of LTC

    JohnBy No Comments5 Mins Read

    To understand the principles and prospects of Litecoin cryptocurrency, let’s highlight its features and differences from Bitcoin:

    Blocks. The formation of blocks in Litecoin is the same as in Bitcoin. Each subsequent element of the chain contains the hash of the previous block. The difference lies in the hash lookup function. In case of Litecoin, Scrypt is used, while for Bitcoin it is SHA-256.

    Mining. As noted, Litecoin uses the scrypt algorithm, which contains SHA-256 in the structure. Its peculiarity lies in the “serialization” of calculations, when compared with Bitcoin. As a result, the “script” requires more RAM (computing power alone is not enough). As a result, Litecoin is less characterized by the “race for equipment” that is relevant for Bitcoin.

    Addresses. In Litecoin virtual coins, operations are performed using addresses, which are based on identical principles – using two types of keys (public and private). The difference lies in the number of characters. So, for Litecoin, this number is 33 and it starts with a “three” or the letter “L”. In Bitcoin, this number ranges from 27 to 34, and the first characters are “one” or “three”.

    Transaction speed. Miners know that it takes 10 minutes to create a block in Bitcoin. In Litecoin, this parameter is four times lower and is 2.5 minutes.

    The number of coins. The total number of Litecoin (LTC) coins is 84 million. In Bitcoin, this figure is 4 times less – 21 million.

    Advantages of Litecoin

    When considering what kind of Litecoin currency, you should pay attention to its advantages:

    1. With the activation on the SegWit network, the throughput of Litecoin has increased significantly.
    2. The presence of better scalability allows cryptocurrency to replace fiat money used to pay for goods and services. This trend is noticeable in Europe and the US, where Litecoin is a popular coin.
    3. The generation of one block is faster – within 2.5 minutes, which simplifies the mining process. In addition, the algorithm for mining virtual currency is simpler, and it does not require excessive spending on the purchase of equipment.
    4. Litecoin works on all hardware storages that are popular today.
    5. A simplified algorithm of work makes it easier to start mining with a GPU. As a result, less electricity is consumed and mining costs are lower.
    6. The Litecoin cryptocurrency is considered more flexible and easier to change than Bitcoin. With the advent of the lightning network protocol and its introduction into the structure of Litecoin, the scalability of the transaction will increase even more.

    All mentiond above features make Litecoin very popular for sports betting and online casino gambling – more about it you can read on bestcryptogamblingsites.info.

    Disadvantages of Litecoin cryptocurrency

    The review of the virtual coin will not be complete if you ignore its disadvantages. The main criticism concerns the following aspects:

    1. Cloudy perspectives. Experts argue that Litecoin’s only advantage over Bitcoin is fast block confirmation. At the same time, they are sure that in the future the fork will not bypass Bitcoin in terms of the number of users, popularity and value. The benefits of fast block times and alternative mining have yet to materialize in the form of a surge in demand and appreciation. Although, in 2017, positive trends are already observed. Against the background of the growth of Bitcoin, the cost of its fork, Litecoin, also increased.
    2. Doubtful “silver” status. People who have been working in the field of cryptography for a long time are not ready to compare Litecoin with silver, and Bitcoin with gold. Both the first and second cryptocurrencies are in no way “tied” to precious metals and are able to beat them in price.
    3. Risk of double spending. The high speed of block mining has a downside – the risk of spending the same funds, although with the advent of new algorithms and increased security, such problems are excluded.
    4. Vulnerability. The Litecoin cryptocurrency can be attacked by an attacker capable of accelerating a rate that exceeds the hashing activity of the network. As the complexity of the cryptocurrency network increases and the number of participants grows, it becomes increasingly difficult to launch and sustain such attacks.
    5. Little demand. The popularity of Litecoin in the world is at a low level, which many associate with dependence on Bitcoin and a number of other disadvantages, which are mentioned in the section.
    6. Low price. From the moment of its appearance and until 2017, the Litecoin exchange rate changed within small limits, and only at the end of 2017 the cost of the cryptocurrency went up. Despite this, the cost of Litecoin remains low. On the other hand, this is a positive signal for investors who plan to increase their capital by further increasing the value of the virtual currency.
    7. Litecoin failure. Studying information about Litecoin and its development trends, many come to the conclusion that virtual coins have no potential. Mining is criticized, where participants who start mining earlier are rewarded. If the user entered the race late, he loses money and does not receive a bonus. In addition, experts are not inclined to overestimate such advantages of Litecoin as fast block mining and high transaction speed. They are sure that highlighting these qualities is aimed at “promoting” the fork and increasing the value of Litecoin.

    Despite the disadvantages, Litecoin is an alternative to Bitcoin. However, with the advent of more interesting cryptocurrencies, it is gradually losing status. So far, Litecoin is in the top five virtual money.