In recent years, cryptocurrency or digital currency has been a popular topic in debates. People are wondering how it can be regulated, making others more suspicious of its legitimacy. This is why if you’re thinking of joining the bandwagon, it’s important that you know exactly what you’re getting yourself into.
What is Bitcoin?
According to many people, Bitcoin is the original cryptocurrency and has remained the most popular of them all.
It was created in 2009 by someone who goes by the alias Satoshi Nakamoto whose purpose was to offer an alternative currency. This cryptocurrency was designed to use the blockchain technology, which is supposed to make financial transactions much safer.
Bitcoin allowed miners to mine and put more coins in the public network. Nowadays, Bitcoin operates like a stock that can be purchased through exchanges. This means that Bitcoin is as much as a currency as a stock.
As of this writing, Bitcoin is valued at $5,474.63.
What is Litecoin?
Just like Bitcoin, Litecoin is a digital currency that uses the blockchain technology to trade and transfer coins.
This cryptocurrency was created by former Google engineer, Charlie Lee, as a peer-to-peer currency in 2011. In many ways, Litecoin is a variation of Bitcoin, since the latter’s protocol is the foundation of other cryptocurrencies. This is how the term “altcoin” came to be.
Litecoin uses Scrypt, a memory-intensive proof of mining to allow consumer-grade hardware to mine the coins. As of today, Litecoin’s value is at $74.03.
Difference between Litecoin and Bitcoin
These two cryptocurrencies share the same basic structure. Both also rely immensely on cryto networks. But they have a few differences.
1. Algorithm and mining
Litecoin and Bitcoin use different proof-of-work algorithms. Bitcoin uses a traditional SHA-256 algorithm, while Litecoin uses one that will produce four times more coins.
2. Market capitalization
Bitcoin has a market cap of $97,091,352,465. Litecoin has $4,556,474,732.
3. Transaction process
Both Bitcoin and Litecoin transactions take a long time to be confirmed on a blockchain. But the latter has a faster transaction time of 2.5 minutes, while the former has an average of 10 minutes.
By gathering pertinent information, you’ll be able to make sound financial decisions, like choosing between Bitcoin and Litecoin.