By: Ximena Peinado
During the first wave of cryptocurrencies, a man from the Ivory Coast named Charlie Lee created the Litecoin cryptocurrency, which resembles its competition, Bitcoin; however these have different parameters.
Today, Litecoin is worth around 62.5 US dollars (1,350 mexican pesos). Litecoin is a global network that allows instant payments (practically free) and an open source, that is, completely decentralized and without authorities that intervene.
One of its main strengths compared to its well-known competition is that it provides faster transaction confirmation times – without the need for a software modification – and improved storage. Additionally, Litecoin handles the blockchain technology that we have talked about in previous chapters.
Unlike Ripple XRP, this cryptocurrency can be mined, which means that transactions for a currency can be validated and processed. Litecoin miners can mine up to 12.5 coins per block. The number of coins that are generated is cut in half every four years (840,000 blocks). Therefore, the Litecoin network is programmed to produce approximately 4 times more currency units than Bitcoin, or close to 84 million litecoins.
To position itself in the market against its strong competitor, Litecoin has other functions that differentiate it. For example, it has a lock time 4 times faster with intervals of 2.5 minutes instead of 10 minutes; a total supply of units four times greater with 84 million coins instead of 21 million and its difficulty changes every 3.5 days compared to every 2 weeks in Bitcoin.
When Litecoin was launched in 2011, there were already eight other cryptocurrencies that were based on the Bitcoin model. These were Namecoin, Ixcoin, I0coin, Solidcoin V1 & V2, GeistGeld, Tenebrix, and Fairbrix.
Some of them were simple copies of Bitcoin –like Ixcoin with mined coins – others experimented with different lock times and transaction fee structures like Solidcoin, and Namecoin was a bit more evolved and proposed a decentralized domain name service, but suffered from competition with Bitcoin miners.
Tenebrix was the first coin to introduce scrypt proof-of-work, but they previously mined 7.7 million coins, a large chunk of the total supply.
Charlie Lee realized with Ixcoin, GeistGeld and Tenebrix that pre-mined blockchains were less successful as people considered them unfair, leading him to fork Tenebrix and create Fairbrix, a fork of Tenebrix without pre-mine. He didn’t survive long due to various mistakes.
Learning from the experiences of these various currencies and his own, Charlie Lee came up with the current design for Litecoin.
Today the company has its non-profit Litecoin Foundation Ltd. with the aim of using Litecoin for the good of society through the development and promotion of blockchain technologies.
Litecoin has also been involved in the educational field directly, since it has a website where you can find guides and classes that teach the public about its cryptocurrency, blockchain technology and the operations and procedures of the company’s electronic currency.
Keep learning with PR1ME Capital
We already talked about Ether ( Ethereum) that gives us the possibility of leaving instructions on how you want a certain amount to move periodically instantly.
In addition to telling you about the RIPPLE XRP cryptocurrency , known as the bank’s cryptocurrency , which unlike others, is centralized, objectionable and has its own RPCA algorithm (Ripple protocol consensus algorithm).
What will we talk about next week? Don’t miss the next content from PR1ME Capital .