Bitcoin’s smaller brother, Litecoin is making big news this week. The alternative cryptocurrency has risen from a mere dollar and some cents to over 7 dollars. Indeed and incredible week for the second biggest crypto. There are many reasons for Litecoin’s big correction, let’s go over a few:
– Less spam tolerant. The great river of spam transactions going on at the Bitcoin network is not economically feasible in Litecoin. For a full explanation please refer to Coblee’s (Litecoin’s founder) post on Reddit.
– The usual block halving means Litecoin is now more scarce than ever.
– Bitcoin’s big block size discussion is still not an issue for Litecoin.
– Some traders are disappointed at Bitcoin’s community for not capitalizing on the Greek debacle.
– Litecoin has been undervalued for many months.
The cryptocurrency world is vast and the story doesn’t end with Bitcoin. Do your research on the mist important/innovative cryptos to stay ahead of the pack.
Litecoin offers three key differences from Bitcoin:
1. The Litecoin network aims to process a block every 2.5 minutes, rather than Bitcoin’s 10 minutes, which its developers claim allows for faster transaction confirmation. A drawback is a higher probability of orphaned blocks.
Advantages can include greater resistance to a double spending attack over the same period as Bitcoin. However, total work done is a consideration. For example, if the Litecoin network has comparatively ten times less computing work done per block than the Bitcoin network the Bitcoin confirmation is around ten times harder to reverse, even though the Litecoin network is likely to add confirmation blocks at a rate four times faster.
3. Litecoin uses scrypt in its proof-of-work algorithm, a sequential memory-hard function requiring asymptotically more memory than an algorithm which is not memory-hard.
4. The Litecoin network will produce 84 million litecoins, or four times as many currency units as will be issued by the Bitcoin network. – From Wikipedia