While the cryptocurrency market is back in red, it is just the right time to think about buying the dips. However, if you are not keen on investing in the most popular cryptocurrency, maybe it can be useful to take a look at other digital currencies. Today, we discuss in details the comparison – Litecoin Vs Bitcoin.
CryptoToday – Back in 2009, when Satoshi Nakamoto has launched Bitcoin, the cryptocurrency did not gain the immediate popularity. Today, Bitcoin is the number one cryptocurrency when it comes to the digital currency market capitalization share. It enjoys the biggest market capitalization, with the current figure being $168,820,756,060.
Aside from the pioneer cryptocurrency, there are more than a thousand of other altcoins. Some of them are very strong and popular, such as Ethereum and Litecoin, while others are quite unstable and still very young.
Litecoin Vs Bitcoin Comparison
Today, we want to concentrate our attention on understanding the key differences between Bitcoin and Litecoin. Many call Litecoin the smaller brother of Bitcoin due to the number of similarities between these two cryptocurrencies.
Litecoin was created in 2011 as a project with the aim to be the silver to Bitcoin’s gold. However, they are not completely the same. So, what are the differences between Litecoin and Bitcoin? Let’s discuss.
Litecoin vs Bitcoin: Mining differences
Yes, just like in case with Bitcoin mining, users can also mine Litecoin. The creator of Litecoin, a former Google engineer Charles Lee wanted to improve upon Bitcoin via his innovation.
The key difference between Litecoin and Bitcoin in terms of mining is the time that the network takes to generate one block. Within Litecoin network, the entire process takes around 2.5 minutes, while the creation of a single Bitcoin block takes 10 minutes in total.
In addition, for miners, Litecoin is different from Bitcoin in another important aspect – it is a different proof-of-work algorithm. Bitcoin utilizes the SHA-256 hashing algorithm, which implies that calculations can be accelerated in parallel processing.
Litecoin, on the other hand, is using the scrypt algorithm. This algorithm actually incorporates the SHA-256 algorithm, but the calculations are more serialized in comparison to Bitcoin’s system.
As of the moment of writing, the difference in the hashing rate of Bitcoin vs Litecoin is as follows:
- The total hashing rate of the Bitcoin network is approximately at 28,004.94 PH/s
- Litecoin‘s hash rate stands at 178.16 TH/s.
Litecoin Vs Bitcoin: Transaction differences
The key transaction difference between Litecoin and Bitcoin lies in the speed of transactions. The Litecoin network can confirm transactions much faster than that of Bitcoin. There are some implications that have a connection to this difference.
Litecoin network is capable of handling a higher volume of transactions due to the ability to generate blocks faster. In case Bitcoin’s speed of block creation was to match that of Litecoin’s, this would require some significant updates to Bitcoin’s code.
One of the advantages that come with the faster block time of Litecoin is the decrease of the risk of double spending attacks. In fact, the transaction and confirmation speed are the key points of arguments when it comes to Bitcoin.
Litecoin Vs Bitcoin: Total Supply of Coins
Another important difference between Litecoin and Bitcoin is the total supply of the coins ever produced. The Bitcoin network’s supply figure stands at 21 million coins, while Litecoin network can never exceed 84 million coins.
Some might think that the fact that Litecoin’s coin supply is biggest is advantageous for this cryptocurrency. However, it is not exactly true. This is because both Bitcoin and Litecoin can be broken down to almost infinitesimal amounts.
Therefore, users of either digital currency should not encounter any difficulties while making purchases, regardless of how high the price of the single coin might become.
Do you have any questions? Do not hesitate to ask them in the comments section below.