What is Litecoin?
You’ve heard of Bitcoin, so now what is Litecoin?
Litecoin is a peer-to-peer digital currency that enables instant, near-zero cost payments to anyone in the world. Litecoin is open source, fully decentralized and operates without any central authority.
Strong cryptography secures the network and empowers individuals to control their own finances. Litecoin features faster transaction confirmation times and improved efficiency when compared to other leading cryptocurrencies.
With substantial industry support, trade volume and liquidity, Litecoin is a proven medium of commerce complementary to Bitcoin. In fact, Litecoin is often referred to as the silver to Bitcoin’s gold. Litecoin was created in 2011 by former Google employee Charlie Lee.
Lee designed Litecoin to be used alongside Bitcoin as a medium of exchange. Bitcoin is great for large transactions or a store of wealth but falls short when dealing with micro payments.
Litecoin’s fast and cheap transactions make it perfect for everyday purchases like online shopping or buying a cup of coffee. Litecoin is also an easy way for merchants to accept money, as there are no fees to receive payments or charge backs.
So how does Litecoin work?
Transactions are recorded and verified on a decentralized, public ledger known as the blockchain. This blockchain is secured and maintained by individuals called miners. These miners contribute their computer power to the Litecoin network and as a result they receive Litecoin as a reward.
Miners are currently awarded with 25 new Litecoins per block, an amount which gets halved roughly every 4 years or every 840,000 blocks. This process, known as mining, is how new Litecoin are created
There will only ever be 84 million Litecoin in existence. As a result, the value of your Litecoin will not decrease in value due to inflation. Litecoin can be easily purchased and sold on a number of exchanges using all types of currencies.
You can securely store your Litecoin in a wallet on your computer, tablet, phone or laptop. Using your wallet is easy sending and receiving payment is only a mouse click away!
The future of Litecoin
Litecoin developers continue to be on the cutting edge of cryptocurrency technology. There are several proposed projects that would dramatically increase Bitcoin’s functionality. It will pay to know what is Litecoin.
Atomic Swaps – Allows two people holding tokens on two different blockchains to trade directly and instantly, without the risk of one party running off with the other’s money before the trade is complete. This could make centralized exchanges obsolete.
Smart Contracts – There have also been discussions of adding support for smart contracts to the Litecoin network. Smart contracts are applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference. This is a fancy way of saying, a smart contract is computer code, that once setup, runs on its own no matter what.
Litecoin has shown time and time again its ability to adapt and incorporate new technology. This is certainly a token for people to keep their eyes on.