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What is Litecoin

What is Litecoin

What is Litecoin

Litecoin is an electronic currency (or Cryptocurrency) based on Bitcoin. As many people know, Bitcoin is a digital currency with which you can buy goods and services as with any other currency in the world, with the only difference that the Bitcoins are not “physical” money but digital. The advantages of using this currency are countless: the transactions are encrypted and anonymous, it is not being supplied by a central body and therefore no bank or government entity can manipulate the value, each owner can spend their Bitcoin only once, the production of new Bitcoin has always controlled and programmed, etc.

Differences between Litecoin and Bitcoin

As Bitcoin, Litecoin is a digital currency that offers the advantages of a Cryptocurrency: it allows anonymous payments throughout the world, it is deflated. There are no intermediaries between the user that sends the payment and the one that receives it without commission costs. The main differences with Bitcoin concern mainly the way in which it operates and the algorithms with which you will get Litecoin. Also it uses Scrypt as algorithm of mining (unlike Bitcoin, which uses SHA2), that makes possible to “undermine Litecoin” on normal computers and GPU more widespread. This has led to a considerable increase of the power of hashing in the network, which makes the Litecoins slightly lower than Bitcoins as regards their value. Scrypt is an algorithm less common and less analyzed than SHA2. Another difference between Bitcoin and Litecoin is that you can produce up to 84 million units of currency Litecoin, while Bitcoin is hovering around 21 million units. Litecoin has reached, in April of 2013, the capital value of $ 35 million. As Bitcoin, Litecoin can be saved on your computer and transferred through internet to anyone with an address Litecoin. With the wave of interest that has been poured out in recent months to Bitcoin, also Litecoin begins to be used by any company or web sites.

How do Litecoin generate?

Through the appropriate programs. To try to deepen the discussion, we have to point out that they are called also criptovalute. In short, through an operation known as miming in the world of the internet, you decide how many Litecoins to generate and the protocols to follow to perform the transactions. This is because, just as is happening at traditional coins in which we are accustomed, you can not generate disproportionate numbers of Litecoin, because otherwise it would come into play devaluation. If you’re curious to know who is behind all this, resign, because the names of the inventors as well as the secrets of the protocols have not been disclosed at the time and certainly the situation will remain unchanged for a long time, because those who work in this sector prefer to take advantage of pseudonyms. Probably, if have not heard about of Litecoin, you will have heard of bitcoin, an other Cryptocurrency a bit ‘more famous that has taken hold since 2009, thanks to the ingenuity of a Japanese who wanted to try to set up this situation that, overtime, it has become a solid reality for what concerns the world of virtual finance. Everybody speak about Bitcoin and also much, so much that around this currency have been created even speculative bubbles. From this we can deduce that the potential of these virtual coins, bitcoin, Litecoin or otherwise, is high and that, probably, in the future you will hear about of these last as real coins that will take more and more ground in our lives. Moreover, at the time, in environments of high finance you look with much favor the spread of these virtual currencies and we are sure that we have not heard the last of this.

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