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Litecoin & Its Development in 2021

Litecoin (LTC) is a cryptocurrency that resembles Bitcoin in many ways. Fundamentally, Litecoin is a decentralized cryptocurrency that follows the same protocols like Bitcoin, with a few exceptions.

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Litecoin (LTC) is a cryptocurrency that resembles Bitcoin in many ways. Fundamentally, Litecoin is a decentralized cryptocurrency that follows the same protocols as Bitcoin, with a few exceptions.

Litecoin, like Bitcoin, uses proof-of-work for consensus and runs on a permissionless peer-to-peer network that allows users to send money to one another without the need for a central authority.

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Who Created LTC?

Charlie Lee founded LTC in October 2011 as a spinoff of Bitcoin. It is one of the first alternative cryptocurrencies (altcoins). Litecoin aspires to be the “Silver to Bitcoin’s Gold”. It is combining Bitcoin’s finest inventions with a lighter approach to attaining Bitcoin’s lofty goals.

On the 7th of October 2011, the Genesis Block, the first block of the Litecoin network, was mined.

What is Litecoins’ Value?

Litecoin (LTC) is one of the top ten cryptocurrencies. One can buy and sell on more than 300 CoinGecko-integrated exchanges. Bitcoin (LTC/BTC) and Tether (LTC/USDT) are the most popular trading pairings.

LTC, like Bitcoin, does not have a fixed exchange rate at first. The market’s perception of worth entirely decides the price based on supply and demand.

It’s also worth mentioning that Litecoin’s block rewards follow the same halving pattern as Bitcoin’s. Halving every four years from 50 LTC to 25 LTC, 12.5 LTC, and so on. The next LTC halving will be on 2023 when the block reward will reduce from 12.5 to 6.25 LTC every block.

How is Litecoin Different from Bitcoin?

While Litecoin was created by cloning Bitcoin’s codebase, there are several key differences:

Block time

The LTC Network aims for a 2.5-minute block time. On the other hand, the Bitcoin Network aims for a 10-minute block time. This implies that, in comparison to Bitcoin, transactions may be confirmed faster, and the network has better throughput.

Maximum supply

The LTC protocol specifies a maximum supply of 84 million Litecoins. Whereas, Bitcoin has a supply limit of 21 million Bitcoins.

Proof-of-Work Algorithm

Scrypt is a distinct proof-of-work algorithm used by LTC. Whereas SHA-256 is used by Bitcoin. Scrypt is a memory-hard algorithm that was designed to be resistant to ASICs.

Address

Addresses in Litecoin begin with either “L” for non-Segwit addresses or “M” for Segwit addresses. Bitcoin addresses begin with “1,” “3,” or “bc1.”

Litecoin Development in 2021

LTC has been closely following Bitcoin since its launch. The improvements to Litecoin’s core protocol are primarily based on the updates to Bitcoin’s core protocol.

Litecoin was the first of the top five proof-of-work cryptocurrencies to adopt Segwit in May 2017. It is followed by Bitcoin a few months later in August 2017.

Litecoin developer Charlie Lee revealed in 2019 that the Mimblewimble protocol will be for private transactions (popularized by Grin and Beam). They now audit the development phase. It is projected to be completed by the end of 2021.

How can I Mine Litecoin?

LTC uses the Scrypt algorithm. It is a memory-hard method that is resistant to Application Specific Integrated Circuit miners (ASICs). However, manufacturers began producing Scrypt ASICs that outperformed CPU and GPU miners in 2014. ASICs finally control the Litecoin network.

ASICs from companies like Innosilicon now need to mine Litecoin. Mining profitability may use sites like WhatToMine and ASICMinerValue for calculation. Don’t forget about Litecoin’s pricing, miner efficiency, and electricity prices, among other things!

How do I Keep My Litecoin Safe?

Similar to Bitcoin, if you lose the private keys to the wallets that store your Litecoin, it is lost forever. It is doubtful that you will be able to recover it. Because LTC is a decentralized, permissionless cryptocurrency, it’s doubtful that you’ll be able to recover it if you transfer it to an undesired address. This is something to keep in mind.

With this in mind, it’s critical to reduce the danger of losing private keys or distributing your Bitcoin to the wrong people. Both of these things can happen if malware or spyware infected your computer, so make sure you have enough protection in places, such as anti-virus software and safe browsing practices (don’t click on strange links!).

Hardware wallets, like Trezor and Ledger, are another extra step that can assist protect your cryptocurrency. These devices basically isolate your private keys (a.k.a. your Litecoin balance) on an external device, preventing hackers from accessing it without passcodes that only you, the user, know.

It’s vital to remember that properly safeguarding cryptocurrencies is a lot like being your own bank, and there’s no way to retrieve your assets if you lose access to your private keys without a backup. Always keep a backup copy (or copies) in a secure and hidden location.

Are there any Litecoin Derivatives?

Yes, there are – the crypto derivatives market is booming, thanks to the influx of new cryptocurrencies. Litecoin is no different, and you may trade Perpetual Swaps or Futures on a variety of derivative exchanges like BitMEX, Binance Futures, FTX, and others. Take a look at the whole list of derivative goods and exchanges!

“The views and opinions on this Crypto News Website are solely those of the authors and contributors. These views and opinions do not necessarily represent those of iBaseTrading or its partners.”

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Angela Lopez stepped into the Cryptocurrency world after her Journalism career and hasn't looked back since, writing about anything crypto-related. She started working with iBasetrading in October 2011.