The cryptocurrency Litecoin (LTC) was developed by Charles Lee, a former Google developer, in 2011. In his project, the developer tried not only to preserve all the advantages of the Bitcoin cryptocurrency but also to strengthen them and exclude the existing inaccuracies. Two years after its inception, Litecoin was rightfully considered the main reserve digital currency after Bitcoin. And in 2016, it became the second most expensive and significant cryptocurrency, overtaking many existing altcoins.
Litecoin is one of the forks of Bitcoin and has a free, open-source algorithm that is developed under the MIT/X11 license. Still, Litecoin is significantly different from Bitcoin.
This cryptocurrency is designed to operate with a maximum number of units greater than bitcoin. Litecoin is limited to 84 million units, four times more than its big brother. This will allow for more maneuverability and, above all, a reserve for the future.
It is used by traders because the transaction speed is much faster than bitcoins. It typically takes an average of 2:30 minutes to complete a transaction. That 2.5 minute is a quarter of the time it takes to complete a bitcoin transaction, which is about 10 minutes. If you're looking for a way to invest quickly, this is the best option.
It works faster because it uses a different protocol than BTC. It implements SHA-256. Although LTC uses Scrypt, and because it is not as "heavy" as the first, it allows it to work up to four times faster.
Finally, Litecoin is halved every 840,000 blocks. This figure is four times the 210,000 blocks of Bitcoin. So if Litecoin makes a block four times faster, it takes four times as many blocks to halve it. Then it becomes clear that it was programmed to happen at the same time as BTC.
How to mine Litecoin?
Litecoin uses the Scrypt algorithm for mining in an attempt to make the process more democratic. The bitcoin mining system that LTC sought to improve was supposed to be democratic, allowing everyone accesses to the currency. However, it didn't end there, so Lee made sure to make Litecoin more accessible to everyone.
The Scrypt algorithm requires that the calculations for the act of mining be done sequentially, rather than allowing them to be done in parallel, as in bitcoins. This effectively prevents ASICs (specialized integrated circuits) from monopolizing the mining process. The ASIC ban was intended to increase the share of Litecoin mining among those who still use GPUs (graphics processing units) for the task. However, it should be noted that it will be very slow and can still consume a significant amount of power.
The faster verification time for new blocks that LTC achieves will further democratize the mining process, allowing more potential miners to get a chance to be credited for mining a block.
The algorithm that Litecoin uses is Proof-of-Work is one of the most popular consensus mechanisms used in blockchains, not least because it is used on platforms such as Bitcoin. Essentially, in this algorithm, a node in the network must perform computationally intensive operations to prove a transaction and add it to the pool, and the result is easily comparable to the results of other network calculations. The first node to perform all the necessary computations is rewarded for the work done, so members of the system compete with each other. It should also be emphasized that the amount of work performed is always an expected value. You can try to get your own coins in Litecoin online wallet blockchain.
Litecoin Halving History
Litecoin does not have a blockchain; however, the reward for mining a block of the network is halved every 840,000 blocks. Currently, the reward per block for Litecoin miners is 25 LTC, which was reduced to 12.5 LTC around August 6, 2019. The first and only halving of Litecoin occurred on August 26, 2015, when the block reward was reduced to 25 LTC from 50 LTC. The biggest impact on the Litecoin chain will be the profitability of mining. Simply put, Litecoin will cut the profit that miners receive for their LTC mining work in half - by 50%. And if the historical data is true, halving it will lead to a recovery in Litecoin price. After the first halving in 2015, LTC rose 100%, from a pre-cut price of 1.5$ to a post-cut price of 3$. Similar consequences can be expected this time around. Prices can be expected to rise by half and then stabilize at a new high.