What is litecoin and how is produced? Where and how to buy litecoin? How to mine LTC?
What is Litecoin?
Launched on October 7, 2011 by a former Google employee, Charlie Lee, litecoin is a peer-to-peer cryptocurrency and open source software. It has very similarities with bitcoin with its infrastructure and technical details. Lee uses the “Silver Bitcoin” nickname for litecoin. In official channels, litecoin defines itself as follows:
“The internet currency that provides instant peer-to-peer payments to anyone in the world at near zero cost. Litecoin is a decentralized, open source and global payment network that operates independently from a central authority.”
In the bitcoin network, each block is processed in ten minutes. In the litecoin network, block processing times can be reduced to 2.5 minutes. Transactions that take longer and cost higher transaction fees in other networks can be provided faster and cheaper with litecoin.
In another technical detail that separates the two, bitcoin uses the algorithm named SHA-256 while litecoin uses the Scrypt algorithm. Scrypt, which is easier to calculate and lighter in terms of workload, provides faster confirmation of LTC transactions. The concern that the speed advantage may lead to security weakness has not been experienced yet.
How and Where to Buy Litecoin?
The fastest and safest way to buy litecoin is to register on one of the trusted crypto exchanges. You can then send traditional currencies or other cryptocurrencies to your wallet and buy LTC in return.
As with other cryptocurrencies, there are everyday ways to get LTC. You can get your salary on LTC or ask a friend to send litecoin to your wallet.
How is Produced Litecoin?
Litecoin is produced through mining just like bitcoin. Earning rewards by solving complex codes through computers with superior hardware features is the most basic method of doing litecoin mining.
Due to the Scrypt algorithm in litecoin infrastructure, there is no mining competition between LTC and BTC. Charlie Lee explained that it is possible to do bitcoin mining at the same time while doing LTC mining.
How to Mine Litecoin?
There are many ways to litecoin mining. The most important of these is hardware mining with computers with powerful processors. Today, it is not possible to profit from mining without using special equipment for LTC mining.
CPU usage is no longer profitable when bitcoin mining. Since even graphic processor units are not sufficient alone, mining special equipment called ASIC is used. This is different for LTC. Litecoin mining can be done using the CPU units of computers. However, with this method losing its profitability, GPU usage has become a must. With the introduction of ASIC devices that decode the Scrypt algorithm, LTC mining has been made only with special hardware.
It is important to decide whether or not to run a LTC mining alone or in a pool. Today, you almost have no chance of getting litecoin using GPU or CPU alone. In the pools, many miners can generate blocks by producing high hash power.
Future of Litecoin
LTC, one of the first alternative cryptocurrencies in the market, has managed to maintain its top 10 position for many years. Investors who want to earn money by diversifying their portfolios can use LTC. “If bitcoin is gold, litecoin is silver” is one of the most widely used phrases in the crypto market for many years. Nobody knows the future of cryptocurrencies, but the deep-rooted history and stability of LTC has always kept it among preferable cryptocurrencies.