The popularity of Bitcoin has fueled development of many other altcoins and such development is helping traders diversify. Out of these altcoins, the most well-known is Litecoin, in terms of its market capitalization, mass appeal and adoption. Let us delve into details of why it is considered crypto-coin of the future.
Litecoin – Crypto-coin of Future
Let us first go through details which tell us about its origin.
The basic inspiration behind Litecoin was King Coin, mainly due to its decentralized approach towards currency. When we are talking about its origin, it is necessary to mention something about Charlie Lee, Litecoin’s founder. Charlie was previously working for Google and was also Director of Engineering for Coinbase.
Many think that Litecoin is a clone of Bitcoin but in reality there are technical differences between the two. Some of the notable changes include:
- Use of Scrypt Protocol: The blockchain makes use of Scrypt protocol rather than SHA256. If you are a trader then it hardly means anything to you but in case, you fall in the category of miners, then it certainly does. The reason is that miners who utilize the hardware for running network of Bitcoin will not be able to make the change over to Litecoin. The benefit is that it ensures that major mining conglomerates stay away from Litecoin since it is not possible to easily optimize profits through a swap to some other coin. This in turn helps in creating a decentralized experience.
- Bigger Blocks: Another important factor is that there are bigger blocks as well as higher number of coins that are present in circulation. This means that transactions tend to be more affordable plus transactions take place swiftly. Due to this reason, there has been greater adoption of Litecoin within the retail market.
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