1. What is Litecoin?
Litecoin is a global decentralized p2p payment network with the currency of the same name (Litecoin, ticker LTC), built on the source code of bitcoin.
In October 2011, it was launched by its author and developer Charlie Lee, who wanted to improve the system of the first cryptocurrency by using a different mining algorithm and reducing transaction confirmation time. The code for the “digital silver” project was released with a free license from MIT/X11, which means it can be modified, copied and distributed in a modified form.
Lee recently said in an interview that he took up lightcoin just for fun and didn’t expect it to succeed. He considers it slightly less secure and decentralized than bitcoin, but interesting because of the lower fees, high speed and bandwidth of the network. Lee believes bitcoin will increasingly be seen as a store of value and lightcoin will be used for small payments.
2. How is litecoin different from bitcoin?
In essence, lightcoin is a fork of bitcoin. The lightness of its network allows transactions to be confirmed 4 times faster than bitcoin’s blockchain. Both systems use the Proof-of-Work (PoW, proof-of-work) consensus algorithm, but bitcoin uses the SHA-256 hashing algorithm and litecoin uses Scrypt, which requires more RAM but is easier to set up.
Bitcoin has an issue limit of 21 million coins and litecoin has an issue limit of 84 million coins. Each bitcoin address has 26-35 characters with the digits 1 or 3 at the beginning of the string, while the lightcoin address consists of 33 characters, is formed based on a public key using SHA-256 hashing and starts with the letter L or the digit 3 (after SegWit was activated in 2017, this second type of address got an M start).
3. How to buy lightcoin?
Litecoin can be bought on cryptocurrency exchanges, by hand or from exchangers (which is less secure) or by using a credit card directly on Litecoin.com.
4. What is the difficulty of mining litecoin?
Every 2016 blocks (once every 4 days) the Litecoin network automatically adjusts a parameter reflecting the amount of computing required to find a new block, i.e. the coin’s mining complexity. This is necessary in order to keep the time to create a new block within about 2.5 minutes amid changes in the mining capacity.
5. How to mine lightcoin?
Before Chinese mining giant Bitmain introduced an ASIC miner powered by the Scrypt algorithm in 2014, it was possible to mine Litecoins using central processing units (CPUs) and graphics processing units (GPUs). It is possible to mine LTC using the project’s official wallet or special software that runs on the Scrypt algorithm.
Taking into account the fact that the complexity of computational tasks in this case will be higher than in bitcoin mining, but the amount of compensation for miners has recently decreased, it is extremely difficult to make money on mining litecoin these days without a special mining farm.
6. What is halving litecoin?
In early August 2019, the Litecoin network hosted its second halving, a reduction in the reward for miners per network block mined from 25 LTC to 12.5 LTC, on block 1680000. As Charlie Lee explained, it should prevent LTC price from turning down.
The next similar reduction in the amount of remuneration is scheduled for August 2023.
7. Who is in charge of developing the Litecoin network?
At first, all the work related to the development of Litecoin network was done by its creator Charlie Lee. At the same time, he worked at Google and, since 2013, at the American cryptocurrency exchange Coinbase, and only fully devoted himself to the project since the summer of 2017.
In the same year, he founded the nonprofit organization Litecoin Foundation in Singapore and became its managing director, sharing board seats with developer and crypto investor Xinxi Wang, British developer Franklin Richards, and project manager Zing Young. The Litecoin Foundation financially supports the Litecoin Core development team, which includes Litecoin project developers and several professionals from the organization.
In December 2017, Charlie Lee sold all the Litecoins he owned to the Litecoin Foundation, explaining that by doing so he wanted to reduce his influence on the community, the market, and the price of the cryptoasset.
8. What was the SegWit fork in the Litecoin network for?
Segregated Witness (“SegWit”) technology allows you to change the block size limit by removing signature data from a transaction. SegWit softfork was originally intended to increase bitcoin network throughput. Litecoin did not need such a solution in April 2017, but still the update was first activated on its network.
As a result, the block size in the network doubled, and in addition, according to some experts, the update contributed to a better adaptation of Litecoin compared to bitcoin and prepared LTC for the introduction of Lightning Network technology, which allows to send coins without paying fees. As Charlie Lee later said, his project actually helped bitcoin test SegWit.