Bitcoin vs Litecoin – it’s important to know the distinctions between Bitcoin vs Litecoin as a crypto trader. Bitcoin set the tone for our new blockchain movement with the world’s first cryptocurrency. But, Litecoin demonstrated to the public that you can draw on the strengths of Bitcoin and incorporate a few additional technological features without sacrificing the coin’s efficacy or ultimate intent.
Bitcoin was created in 2008 and launched into the market in 2009. Satoshi Nakamoto, the anonymous founder of Bitcoin, reveals how he was able to overcome the infamous double-spend problem that afflicted all past digital currencies in forum threads. The problem with the double-spend was due to a technological constraint. It explained the situation in which you sent a digital currency to someone and then sent the same currency to someone else at roughly the same time. The resulting delay would make it impossible to stop. Satoshi pointed out that he could apply a timestamp to the Proof-of-Work algorithm. Since this timestamp is embedded in each block, it is difficult to submit two transactions at the same time.
The resulting delay would make it impossible to stop. Satoshi figured out that he could add a timestamp to the Proof-of-Work algorithm. Imbedding this timestamp in each block makes it impossible to send two transactions at the same time without discrepancies arising.
It didn’t take long for other developers to note Satoshi’s distinct approach. Charlie Lee, a Google employee, is one such creator. He was so moved by the idea that he wanted to become a part of the movement. Rather than actively competing with Bitcoin, Lee aspired to be the Robin to Bitcoin’s Batman. In his own words, he explains that Litecoin is the silver to Bitcoin’s gold.
On October 7, 2011, Litecoin was released as an open-source client on GitHub. One of the first hard forks of the Bitcoin Core client was Litecoin. The technological features of Lee’s version of cryptocurrencies were beefed up. Every 10 minutes, for example, Bitcoin confirms blocks of transactions. The size of these blocks is limited to 1MB of data.
Every 2.5 minutes, Litecoin confirms a stone. The network is much quicker than Bitcoin, with developers claiming a transmission rate of 28 transactions per second. Interestingly, this faster generation rate matches the increase in total supply versus Bitcoin. There are only 21,000,000 BTC to ever be accessible. The cumulative number of LTC that will be released is 84,000,000.
Bitcoin vs Litecoin – What’s Better?
There is no correct or incorrect response to this issue. As the world’s first blockchain, Bitcoin plays an important position. It will still be valuable in the society for that cause alone. Litecoin has many of the technological features of Bitcoin, as well as the longevity of being one of the world’s oldest cryptocurrencies. It’s less expensive than the premier alternative, but it’s still a good investment, similar to platinum. Smart investors hold both of these coins for these reasons.
Consensus Mechanisms – Bitcoin vs Litecoin
Both Bitcoin and Litecoin rely on a Proof-of-Work consensus system. Bitcoin implements the SHA-256 mechanism. Safe Hashing Algorithm (SHA) is an acronym for Secure Hash Algorithm. Miners would solve this mathematical equation. The miner who correctly solves the equation receives the mining incentive and has the privilege of adding the next block of transactions to the blockchain.
On the Bitcoin network, the new incentive for miners is 6.25 BTC. Notably, this is the only time that new BTC reaches the market by mining incentives. They’re supposed to happen every ten minutes. The SHA-256 equation dynamically changes complexity to guarantee the predictability of Bitcoin’s monetary supply.
The more hashing power of the network, the more difficult the answer. To increase the difficulty, the equation simply requires more zeros in the answer.
The initial Bitcoin mining payout was 50 BTC. These benefits drop in half around every four years. The new mining incentive for Litecoin is 12.5 LTC. It’ll be there until August 2023, according to the timetable. Litecoin, like Bitcoin, is designed to halve mining incentives every four years or so.
Litecoin Scrypt PoW
The PoW algorithm is also used for Litecoin. Unlike Bitcoin, Litecoin uses a memory-hard, scrypt-based mining PoW protocol for consensus. Scrypt was created with the goal of making large-scale custom hardware attacks prohibitively expensive. Litecoin also has a somewhat different user interface. In the early days of cryptocurrencies, these improvements made it a little more difficult and costly to build Litecoin mining rigs.
Shared Updates – Bitcoin vs Litecoin
Segregated Witness first became a discussion after the introduction of Bitcoin Improvement Proposal number BIP141. Shortly after, on 21 July 2017, Bitcoin miners upgraded to Bitcoin Improvement Proposal (BIP) 91. Specifically, SegWit went active on BTC at block 477,120.
Litecoin Adds the Lightning Network
Many technological features of Bitcoin and Litecoin are identical. As a result, it shouldn’t come as a surprise that they also share many of their major updates. All coins, for example, use Segregated Witness (SegWit). The network will break transactions into two parts using SegWit. The aim is to delete the original portion’s unlocking signature, also known as “witness” info. At the conclusion of the deal, this detail is re-added as a separate arrangement.
Value Connection – Bitcoin vs Litecoin
The value of Litecoin and Bitcoin has started to decouple over the last decade. When opposed to Bitcoin users, Litecoin users have entirely different trading and buying patterns. Interestingly, one study discovered that Litecoin’s price movements frequently precede those of Bitcoin. However, relative to Litecoin, Bitcoin has proved to be a stronger, or at the very least more common, store of value.
The markets for Bitcoin and Litecoin have grown significantly. The goal of Litecoin to be the BTC’s sidekick has paid off handsomely. It’s popular for sites that back Bitcoin to also support Litecoin. Despite the advent of lots of rivalry, this compatibility has helped Litecoin remain a common coin in the industry.