Litecoin is a peer to peer cryptocurrency that went live on October 13, 2011. It was developed by Charlie Lee, an MIT graduate, who wanted to copy Bitcoin but add a few upgrades of his own. LTC may not be one of the largest market cap cryptocurrencies, but it does have a solid niche. This is because LTC was developed based on Bitcoin source code though modified according to Lee’s vision. Litecoin’s total maximum capacity and faster transaction time makes it a more accessible and more decentralized version of Bitcoin. So if you would like to know more about Litecoin then here’s the information you need.
The Founder of Litecoin
Litecoin founder, Charlie Lee was born in the Ivory Coast to Chinese immigrant parents. When Lee turned 13, his family moved to the United States to pursue a better life, and he eventually ended up attending Lawrenceville High School until 1995.
In college, Lee studied computer science at MIT, where he also developed an interest in economics and finance. After college, Lee went on to work for companies like Kana Communications, Guidewire Software and even Google. Charlie first encountered Bitcoin while he was working in Google, and he soon became interested in the technology. Shortly thereafter, he contacted one of Bitcoin’s developers, Mike Hearn, and bought a single Bitcoin from him.
Lee would later leave Google to create his own cryptocurrency. His first cryptocurrency was called Fairbix but unfortunately, the ventured failed. Less than a year after Fairbix’s failed released, Lee launched LTC by cloning the Bitcoin source code, and adding a few improvements of his own. Unlike Fairbix, the cryptocurrency turned out to be a success, and has carved out its own niche in the world of crypto.
Litecoin Functions and Advantages
If Bitcoin is the the gold of cryptocurrency then Litecoin is the silver. In fact, Charlie Lee envisioned LTC to be most suitable for small transactions and online shopping, whereas Bitcoin is more suited for large transactions where large volumes are involved. Aside from being comparatively faster and easier to mine, there are also more Litecoins to go around. This relatively higher volume reduces LTC’s transaction fees, which in turn lowers competition among Litecoin miners.
These features are all due the cryptocurrency’s Scrypt hashing algorithm, which uses less processing power compared to the algorithm used by Bitcoin. The Scrypt hashing algorithm emphasize the use of high-speed RAM, and this feature makes it less likely for any single player or group to dominate Litecoin mining.
Litecoin Blockchain and Technology
LTC was created using Bitcoin’s source code, but with a few important improvements. These improvements include changes to the code’s hashing protocols, the average time for block transactions, the GUI and the maximum supply cap value. Litecoin’s Scrypt-based algorithm reduces transaction times by around 75%, which effectively makes the average block transaction time to around 2.5 minutes. For those who want to mine LTC , Lee designed his system to distribute hash power more evenly.
Lee and his team also developed an improved GUI for LTC to make more distinct from Bitcoin, and he also increased the maximum supply of Litecoin to around 84 million, which is roughly 4 times the value of Bitcoin. For many crypto investors and traders, however, such improvements are minor, and do little to distinguish Litecoin from Bitcoin. However, Charles Lee affirms that the cryptocurrency was never meant to be a competitor for Bitcoin, but rather a complimentary system that fills up niches that Bitcoin cannot serve.
Should You Invest or Trade Litecoin?
There are pros and cons in either investing or trading Litecoin. For those who want to invest in LTC , it has certain advantages. Firstly, the cryptocurrency is more affordable than Bitcoin, and you can invest small amounts on a regular basis until you reach your investment goals. Secondly, LTC is overseen by Lee himself, so there’s a certain degree of transparency in Litecoin that is wholly absent from Bitcoin.
The downside, though, is that Litecoin is not as popular as Bitcoin, which means that it is less likely to yield better returns than other major cryptocurrencies. If you want to trade the cryptocurrency then its high volume is definitely a benefit. The fact that there are more Litecoins than Bitcoins means that the former is easier to trade than the latter. The downside to this, however, is that LTC is more volatile. So if you’re not used to high volatility trading then you should be cautious when trading Litecoin.