Litecoin one of the first altcoin in the market, which is often called crypto-silver. In this article, we will look at the characteristics of this currency, the process of its mining and storage.
The Litecoin project was developed and launched on October 13, 2011 by the programmer Charles Lee. Crypto-currency was originally conceived rather than as an alternative to Bitcoin, but as an addition to the most popular digital asset. Even on the official website of Litecoin it is stated:
With strong industry support, trading turnover and liquidity, Litecoin is a proven means for commerce in addition to Bitcoin.
According to Charles Lee, the developers had the task to improve the existing technology to eliminate a number of problems inherent Bitcoin. They increased the number of blocks, accelerated transactions and made the system more secure.
Comparison with Bitcoin
It starts with the fact that Litecoin is based on the same source code as Bitcoin. Due to the open source code the Bitcoin system became the basis for creating a set of forks (branches from the main chain of blocks). But Litecoin has a number of changes and improvements that distinguish it from the most famous currency.
Pros of Litecoin:
- Both in Bitcoin and Litecoin networks, data is recorded in the same way as a linked chain of blocks, each of which contains a hash of the previous one. The difference is that Litecoin has a much higher generation speed for new blocks, about 4 times.
- With the SegWit software algorithm, the Litecoin chain chain is capable of handling a higher transaction volume than its equivalent Bitcoin. The program frees up memory, which speeds up the processing of information.
- The speed of transaction confirmation has also increased. The complexity of calculating Litecoin is adjusted in such a way that the generation of the block takes an average of 2.5 minutes. For comparison, in bitcoin this process takes 10 minutes
- The total number of Litecoin coins is also limited and amounts to 84 million coins, which is 4 times that of Bitcoin. But due to the increased production rate, the rates of emissions are close to them. And by 2020, about ¾ of the Litecon coins will be mined.
- According to statistics, the Litecoin network is also subject to various hacking and hacking attacks, however much less often than Bitcoin. This is due to a higher level of protection from cyberattacks.
- The only serious drawback of Litecoin is the threat that programmers call Time Warp. And it is associated with one of the main advantages of the asset the high speed of generating blocks. The essence of the problem is that by executing mining it is possible to assign the wrong time value to the last block extracted and thereby reduce the speed of coin mining. As a result, the generation of the entire chain may or may simply collapse due to confusion over time. For the Bitcoin network, such an attack is practically impractical, since the generation of blocks is slow, and their calculations are almost always correct.
At the time of writing, the cost of one Litecoin is $ 56.50. According to the website of Coinmarketcap, the currency is the seventh in terms of market capitalization. The maximum price for Litecoin reached in December 2017 against the background of a general excitement in the market of crypto-currencies and grew to a mark of $ 350. Then followed a decline and a return to the level of prices a year ago.
To everyone’s surprise, the process of mining Litecoin is at times more complicated than that of the main competitor. Mining only on processor powers is not real, as well as through graphics cards. In addition to high risks to burn equipment, profits from mining probably will not even cover spending on electricity.
In addition, the complexity of coin mining has increased substantially over the past year. The main reason for this was the incredible growth of the market and the popularity of cryptocurrency. More and more users joined the mining of currency, which caused an overall increase in complexity.
Based on all of the above, Litecoin mining is by no means an easy task. But if there is a desire to mine this currency, you will have to choose between these options:
- Create your own farm. The option is very expensive and will pay off for a long time. The simplest farm will cost at least $ 2000. To obtain a decent profit, the creation of a farm will cost several times more.
- Rent of computing power. In essence, the user leases a ready farm and uses any crypto currency for extraction. Today, the market has already appeared quite a lot of companies ready to provide equipment for rent. For example, the company «Machoster». But here also it is necessary to take into account the cost of rent, electricity and the complexity of currency mining.
- Join the Mining Pool. For this, the user will need a powerful computer and a program-miner. We have already considered the rating of pools in one of our articles.
In the process of choosing a purse for crypto currency, it is necessary to take into account the goals pursued by the user in his work with digital assets. There are 4 types of crypto-currency wallets:
- Desktop wallets. They are installed directly on your computer. They have a high degree of protection, but not the most convenient for frequent transactions.
- Mobile wallets. Much easier than desktop wallets, do not store a transaction register in their memory. If necessary, use remote servers. They are considered the most convenient to use, but they are inferior in reliability to their more “heavy“ analogs.
- Online wallets. They are considered to be the most vulnerable, since the key to the wallet is trusted by the service operator. They are most convenient to use for trading or operations that require translation speed. But do not recommend to keep on such purses big sums.
- Hardware storage. The most reliable option for storing crypto currency. These are devices that store keys away from any third-party interference. The only drawback of this type of purse is its cost. Hardware wallets can only be purchased.
Our recommendation for the storage of Litecoin will be the official purse of the company. It can be downloaded and installed from the official site.
In conclusion, I would like to add that Litecoin has already firmly established itself in the leaders of the crypto-currency market and doesn’t intend to establish its positions. The currency gained its recognition both from industry experts and ordinary users.