Litecoin

Litecoin

Litecoin (LTC or Ł) is a peer-to-peer cryptocurrency and open-source software project released under the MIT/X11 license. was an early bitcoin spinoff or altcoin, starting in October 2011. In technical details, is nearly identical to Bitcoin.

History

Close up of silver coin Litecoin on laptop computer keyboard.

This raised concern in some users that mining now had a high barrier to entry,

and that CPU resources were becoming obsolete and worthless for mining.

This would allow Tenebrix to have been “GPU-resistant”, and utilize the available CPU resources from bitcoin miners. Tenebrix itself was a successor project to an earlier cryptocurrency which replaced Bitcoin’s issuance schedule with a constant block reward (thus creating an unlimited

money supply). However, the developers included a clause in the code that would allow them to claim 7.7 million TBX for themselves at no cost, which was criticized by users. To address this, Charlie Lee, a

Google employee Litecoin

who would later become engineering director at Coinbase, created an alternative version of Tenebrix called Fairbrix (FBX). inherits the scrypt mining algorithm from Fairbrix, but returns to the limited money supply of Bitcoin, with other changes.

Lee released via an open-source client on GitHub on October 7, 2011. The network went live on October 13, 2011.

It was a source code fork of the Bitcoin Core client, differing primarily by having a decreased block generation time (2.5 minutes), increased maximum number of coins, different hashing algorithm (scrypt, instead of SHA-256), and a slightly modified GUI.

During the month of November 2013, the aggregate value of experienced massive growth which included a 100% leap within 24 hours.better source needed]

In May 2017, became the first of the top 5 (by market cap) cryptocurrencies to adopt Segregated Witness.

In February 2022, has reached a marketcap of $8.7 Billion.

Differences from Bitcoin Litecoin

Litecoin is different in some ways from Bitcoin:

The Litecoin Network aims to process a block every 2.5 minutes, rather than Bitcoin’s 10 minutes. This allows Litecoin to confirm transactions four times faster than Bitcoin.Litecoin

uses scrypt in its proof-of-work algorithm, a sequential memory-

hard function requiring asymptotically more memory than an algorithm which is not memory-hard.

Litecoin has a maximum circulating supply of 84,000,000 LTC, which is four times larger than Bitcoin’s maximum circulating supply of 21,000,000 BTC.

| timestamping = Proof-of-work (partial hash inversion) | issuance_schedule = Decentralized (block reward)

Initially ₿50 per block, halved every 210,000 blocks

Due to Litecoin’s use of the scrypt algorithm, FPGA and ASIC

devices made for mining Litecoin are more complicated to create

and more expensive to produce than they are for Bitcoin, which uses SHA-256.

When it comes to Litecoin as a method of payment, in early

days there was correlation to Bitcoin in terms of extended payment patterns. Although one might assume that payment

patterns of Litecoin would converge to Bitcoin, it has been found that there is

little correlation of the payment patterns of Litecoin vs Bitcoin today, and these patterns continue to diverge over time.

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