A review of Litecoin: What is do analyst and experts say about its potential?
Litecoin is a peer to peer digital currency that supports instant and near-zero fees transactions around the world. Overall Litecoin is cryptocurrency that is designed to be open source, decentralized and mathematically secure. Litecoin is one of the most robust cryptocurrencies supporting trade volumes, liquidity, and is one of the most widely used cryptocurrency as a medium of exchange.
The coin was first launched in 2011 has a hard fork from the Bitcoin network, thus it shares many of Bitcoin’s characteristics. Developed by ex-google and Coinbase employee Charlie Lee, the coin has been dubbed the silver to Bitcoin’s Gold. Litecoin was developed to be a lightweight alternative to Bitcoin. Litecoin offers much-enhanced transaction speeds, scalability, and ease of mining compared to Bitcoin.
Blockchain: Litecoin utilizes open source software released under the MIT/X11 license. Users are therefore able to run, modify, copy and distribute the software at their own discretion. This allows transparent and independent verification of transactions. The Litecoin blockchain undertakes regular and frequent block generation, hence the network can handle a higher volume of transactions. The network further supports scaling without having to modify the underlying software.
Transaction speeds & scalability: Litecoin processes a block after every 2.5 minutes, this roughly four times the speed of Bitcoin. The fast processing speeds in Litecoin means that double-spending attacks are significantly minimized. Merchants and traders are therefore able to perform transaction much faster than they could on the Bitcoin network. Litecoin also offers a far much more scalability with an ability to perform over 56 transactions per second compared to Bitcoin and Ethereum’s, 7 and 15 respectively.
Mining: Litecoin uses the Proof of Work (PoW) model to facilitate mining. In PoW, a user is rewarded with coins from the network after solving complex mathematical equations. Solving complex mathematical equations help in securing the network. Litecoin utilizes the script algorithm and Graphical Processing Units which are less expensive alternative to Bitcoin’s. ASIC. To further simplify the mining process Litecoin uses Srcypt algorithm. Scrypt allows for a higher degree of parallel processing and is generally more accessible for new miners than a more traditional algorithm.
For the largest part of its existence, Litecoin traded at between $3 to $4 with a cap not exceeding $200 million. However, since 2018 the coins price has shot up to around $60 with a record high of $330 in January of 2018. According to CoinMarketCap, currently, the price of Litecoin is $57.75 with 58 million coins in circulation, bringing the market cap at $3.39 billion. This places Litecoin among the top 10 largest cryptocurrencies by market cap.
With the widespread adoption of cryptocurrencies by merchants, institutional investors and individuals, Litecoin is poised to benefits massively from these developments. With the adoption of features such as Lightning Network and Segregated Witness (SegWit) the coin is going to be even more attractive for users. With more transactions and increased integration with merchants platform, the value of Litecoin is only going to grow upwards.