All about the young currency Litecoin
Since 2011 when it was created, Litecoin has experienced a rapid boom in the cryptocurrency market. The reason is simple. Being in competition with Bitcoin, this type of currency offers support for financial transactions across the world. It has indeed been able to implement several notable optimizations compared to its historical competitor in order to offer cheaper and faster transactions. The following article will tell you all about Litecoin.
What is Litecoin ?
Litecoin is an open source cryptocurrency. This electronic money was created on October 7, 2011 by Charlie Lee. It was conceived as a means of carrying out financial transactions without the need for intermediaries such as banks. Like bitcoin, litecoin is a form of electronic currency in the cryptocurrency market. Using blockchain technology, litecoin can be used to directly transfer funds between multiple individuals or companies. This is to ensure that a public ledger of all transactions is recorded, and it allows the currency to operate within a decentralized payment system and free from government control or censorship.
How to trade Litecoin ?
Litecoin is able to work with the same mining software. The creation of this new digital currency involves the synthesis of units one hundred million times smaller. In other words, Litecoin is divisible up to its 8th decimal place. These mining possibilities are limited to the design of a maximum of 84 million Litecoin tokens, following a geometric series halved every 840,000 blocks (every 4 years). These measures are being taken, among other things, to keep Litecoin inflation under control. Despite this, 4 times more tokens can be issued with Litecoin than with Bitcoin.
The advantages of Litecoin
Very close to Bitcoin, Litecoin shows notable improvements, among which. Among other things, it allows you to :
• Faster transactions
• Very low transaction fees
• Creations of blocks four times more frequent than Bitcoin (we go from 10 minutes to 2.5 minutes)
The disadvantages of Litecoin
Despite these advances, some financial imperfections strongly weaken the value of this cryptocurrency :
• The organization’s business model relies primarily on donations (many of which come from Charlie Lie himself). Other sources of funding (sale of derivatives) do not bring more than $ 10,000 to Litecoin.
• Events like the Litecoin Summit represent a huge economic loss in the order of $ 50,000
• With Litecoin’s annual spend at around $ 100,000, this model seems unstable in the long run, mainly due to the non-profit aspect of the organization.