No matter how much some people deny it, we’re already in a cryptocurrency craze. For one, Bitcoin, which is quite the most popular cryptocurrency nowadays, has jumped quickly from underground to mainstream lightning fast. But Bitcoin is not your sole choice. There’s also the Litecoin.
The year 2017 is the year when Litecoin soared highs alongside a number of other digital currencies. It had reached peaks near $400 per coin before it retreated due to regulatory pressures.
What is Litecoin?
For beginners, Litecoin was invented by former Google engineer Charles Lee in October 2013. Upon its introduction to the world, Litecoin was treated much like silver to the Bitcoin gold. According to Lee, Litecoin could solve many of Bitcoin’s problems.
Litecoin is one of Bitcoin’s most aggressive rivals, partly due to the fact that the two cryptocurrencies share many valuable qualities. Litecoin, just like Bitcoin, is made for peer to peer transaction; is decentralized; and is far more secure that cash.
But Litecoin has its very own advantages over Bitcoin. And here are those top qualities—the reasons why you should also invest in Litecoin aside from Bitcoin.
Better Blockchain Technology
Blockchain is the technology that underpins the cryptocurrency technology. Every time a transaction happens in a digital currency network, the information found in that transaction are recorded in a “block.” Each of such blocks is added to the chain, hence the name Blockchain.
Anyone in the network can view the information in the Blockchain, which means that all transactions are public knowledge, propping up the transparency of the system. The users are also tied to the transactions taking place on the Blockchain via an electronic signature, which gives you a fair degree of anonymity.
With Litecoin you can get both speed and security. Last year, on May 10, 2017, Segregated Witness (SegWit) was launched in the LitecoinBlockchain. SegWit is the process by which blocks are made smaller by the extraction of signature data from transactions.
It is generally believed that the total number of Bitcoins in the world will be limited, though that can still change in the future. Anyhow, with the case of Litecoin, it will eventually have more units on the market than Bitcoin.
This quality appeals to people who prefer simpler and more effective digital currencies. According to a study, 57 percent of retail shoppers prefer products with a rounded price. Then, 4 percent of those customers paid higher just to round up the price.
Other than transaction speeds and volume, another major difference between the two currencies is their algorithms.
Digital currencies are composed of codes, and for the case of Litecoins and Bitcoins, those two codes have distinctly different algorithms.
To cut to the chase, Litecoin’s algorithm is much simpler, making it simpler for miners to access the system. The simplicity of Litecoin mining could really steal Bitcoin miners, whose dilemma is that they have to employ more complex technology to extract a relatively small amount of Bitcoins.