Litecoin is another cryptocurrency that dates back to 2011. This crypto platform was introduced to the public right after two years of Bitcoin. The founder and creator of this cryptocurrency is an ex-Google employee, Charlie Lee. Similar to Bitcoin. Litecoin is also based on an open-source protocol that is entirely decentralized and not controlled by any central power. Some people think that Litecoin and Bitcoin are the same but there is a big difference to be found in the two of them. That’s why Bitcoin Affect Wipro because of the difference between these two. Litecoin has better speed than Bitcoin, uses Scrypt as a Proof-of-Work (PoW) mechanism, and generates relatively faster blocks.
Litecoin comes among the list of very first alternative coins or altcoins that were generated from Bitcoin’s primary and original source code.
At first, Litecoin became a tough competition for Bitcoin. As the crypto market has been established and become more saturated than ever, it has brought a hard-hitting competition to all other cryptocurrencies in recent years. However, Litecoin’s popularity has decreased in the last few years.
People have always taken Litecoin as a reaction to Bitcoin. When Charlie Lee declared the launch of Litecoin on the platform of Bitcoin, he referred to Litecoin as the lite version of Bitcoin. Keeping this in mind, people have observed a lot of similarities in features of both the crypto assets. But the development team has also improved a lot of features and aspects that they thought needed a proper improvement. According to the reports of November 2011, a single Litecoin token is valued at $215 which makes it the 14th world’s largest crypto, holding a market cap of $15 billion.
Differences between Litecoin and Bitcoin
Though there are plenty of similarities among both the crypto assets. However, there are still differences between Litecoin and Bitcoin. Below is a small list of a few differences:
Speed of Transactions
We know that Litecoin demands more erudite technology to perform mining than Bitcoin but blocks are made up to four times faster than Bitcoin in Litecoin. Litecoin performs a variety of tasks including the financial transaction in a much quicker way possible. Furthermore, it can execute big amounts in the same time limit.
Supply of Tokens
Now coming to the number of tokens, both Litecoin, as well as Bitcoin, has countable coins inflow. Bitcoin currently has almost 21 million coins accessible on the other hand Litecoin has 84 million available. The number of tokens of Litecoin is four times extra than Bitcoin which is a win-win for this crypto project.
Market Capitalization of Both Coins
If we compare both the crypto assets in market cap, Litecoin has less market cap than Bitcoin but it is still the most traded cryptocurrency in the world.
Algorithms
Miners must successfully resolve hodge-podge functions to add new blocks to the blockchain. The mining algorithms of Litecoin and Bitcoin are different. Litecoin executes the hash function Scrypt, while Bitcoin uses the hash function SHA-256.
Why Is Litecoin’s Price Affected?
The price volatility is mostly affected by the below-given factors:
Centralized Powers
The majority of cryptocurrencies are unregulated by government authorities, bans, and other related powers. People are asking about the change as this act is affecting cryptocurrencies majorly.
Token Supply
The tokens in supply are finite in amount and are easily accessible to be mined. The number of altcoin currencies in circulation is 84 million. The availability of the tokens can get affected depending on the rate the coins enter the market.
Public Perception
The prices of Litecoin are significantly affected by public perception, safety, and security, and the prices of their competent crypto assets such as Bitcoin or other altcoins.
Acceptability and Adoption
The people might have accepted and adopted Litecoin but the business is still in doubt as they have not completely accepted it. Business firms are still not widely using Litecoin as a method of payment. However, there are still people who have noticed high potential in the blockchain and hope that this could become something huge in the coming years.
Conclusion
The only way for currencies to sustain themselves is to reach a significant number of users who are confident and potential investors. This way the currency will not lose its value. Today, Litecoin is not widely accepted though in the future the probability is quite opposite. With time this currency may stabilize itself and become one of the standard currencies of the digital realm.