What is a Litecoin (LTC) ?
The Litecoin is a digital form of cash which is something like the Bitcoin. If the Litecoin is less known than the latter, it is all the same a currency cryptography, which has existed since 2011, directly exchanged between users. Just like Bitcoin, it uses several encryption systems that not only help to regulate the generation of units of Litecoin, but also to verify the transfer of funds and to ensure the security of transactions.
How does the Litecoin ?
Litecoin is a online network that you can use to send money. It is a payment system that is decentralized, that is to say that it is not controlled by any one entity or government. However, it is also a digital currency, meaning that it is not possible to have a physical version of the litecoins. We do indeed find that on the Internet.
As for the Bitcoin, the transfers of Litecoin are managed through the blockchain. That is to say, all the transactions are grouped into blocks. Each block is then automatically validated by the nodes in the network that are using a method algorithms almost impossible to crack. Once the nodes of the network have validated a transaction, it is visible to all users.
What in the Litecoin is different from Bitcoin ?
Although the two numerical means of payment appear very similar, the Litecoin there are a few differences. The first of these is the number of litecoins available. The Litecoin can generate 84 million currency units as the Bitcoin will only be available to 21 million copies. However, the main advantage of Litecoin is that of speed of transactions since they are only done in 2.5 minutes. In comparison, a transaction of bitcoins requires 10 minutes. However, given that the Litecoin is less common than the Bitcoin, it is accepted by less than online shops.
What is the mining ?
New litecoins are created at a steady pace. The mining is therefore the process that allows you to create the new blocks. However, the use of a single blockchain for all the transactions of litecoins makes this operation particularly difficult. Indeed, it is impossible to create blocks at will : the only way to create new blocks is to calculate the algorithm based on predefined criteria. It is then necessary to try several combinations until you find one that works. This process is called hashing. However, due to the complexity of the transaction, the hash is usually done by specialized software. In addition, according to the needs, the difficulty of the hash is sometimes modified by Litecoin. As a reward, a miner gets 25 litecoins for each block created.
What you must remember
- The Litecoin is a virtual currency, which looks a lot like the Bitcoin.
- It is a currency, crypto-decentralized, which exists since 2011.
- Transactions of litecoins only take 2.5 minutes.
- The mine is a complex operation that allows you to create new litecoins. Each new block created reports 25 litecoins to the miner who mined it.