Many currencies are circulating in our globe today both recognized and non-recognized. More than a hundred internationally recognized money are in circulation.
The first cryptocurrency as we all know which is Bitcoin gets all the popularity and yet been compared with plenty of aspiring alternative cryptocurrencies one of them is the litecoin.
Litecoin could be recognized as the third largest cryptocurrency after the popular bitcoin according to the market capitalization measurement (or the amount of currency in the market).
Litecoin, like every other cryptocurrencies, operates as an online payment sysyem. Just like a bank's online network or PayPal. Litecoin users can use it to transfer currency amongst themselves.
Litecoin is not issued by the government unlike all other digital currencies. To this effect, it has made litecoin the only entity that the people (investors) rely on to issue money historically.
Rather than been monitored by the Federal Reserve, litecoins are generated by the expanding method known as MINING which consists of processing a list of litecoin transactions.
Unlike the normal (traditional) currencies, the distribution of litecoins is on a fix rate. The litecoin network generates what is known as a Block approximately every 2 minutes.
But in the case of bitcoin, its more than five minutes. A block is a ledger entry of current litecoin transactions all around the globe. This is eventually where litecoin's gets its value derivation.
The block is examined by mining software and finally its made visible to any "miner" who is interested to see it. Once a miner confirms it, the next block enters the chain, which is a record of every litecoin transaction.
In litecoin mining,the idea for mining is that the first miner to successfully confirm a block is rewarded with some litecoins. Unfortunately, as time passes by,the amount of litecoins awarded for such a task depreciates.
Sadly, a miner who is a scam will never be able to change the block so as to allow the same litecoins to be spent repeatedly. The scam would be figured out immediately by another miner, anonymous to the first miner.
The possible access to really game the system would be to get a high number of miners to agree to work on the fake transaction, which is technically impossible.
Mining cryptocurrency at a particular rate suitable for the miners requires processing power, derived from a of customized hardware.
In order to mine most cryptocurrencies, the Central processing unit (CPU) on your computer won't be first enough to fully complete the task and demands of mining.
The next fact is the differentciation for litecoins; Litecoins can be mined with ordinary off-the-shelf computers more so than other
Although the greater a machine's capacity for mining, the better the chance it'll earn something of value for a miner.
The society is what places value on cryptocurrency whether it's gold or the U.S dollars. Take for instance if the Federal reserve begins to circulate too many banknotes, automatically, the value of the dollar would drop in drastically.
This simple logic transcends currency. Both goods or services looses its value drastically if it is always available and reachable.
The originators of litecoin has the proper understanding right from the early start which in turn would be difficult for a new cryptocurrency
to emerge and establish a remark in the trading place.
However, if the originators of litecoin wishes to monitor and reduce the number of litecoins in circulation, they should therefore, alleviate the people's fear of excess production.
Here are some of the advantages gotten from litecoin against bitcoin.
- First, Litecoin will be able to handle plenty transactions, given the shorter block generation time.
- Litecoin also has an advantage of scarcely perceptible transaction amount.
For instance, some currencies like the U.S. dollar do not have a steady value, but we need to have one steady quantity when weighing
cryptocurrencies - litecoin's variability becomes clear.
Litecoin market capitalization has been gradually depreciating to its former level ever since, even though the amount has increased.
Litecoin is still facing the challenge of gathering general acceptance and getting more people to use the currency even though hyperinflation is impossible because of Litecoin occurring scarcity.
Immediately a currency gets to a critical number of users who are confident that the currency is truly what it represents and probably won't
lose its value, it can sustain itself as a method of payment.
Litecoin isn't anywhere near universally accepted, as even its own founders admit that it has fewer users. But as cryptocurrencies become more widely accepted and their values gets steady, one or more-possibly including litecoin-will land itself as the currency of the digital world.