What’s this weeks COTW? Can you guess based off of the logo?
When Charlie wasn’t at work, he was at home studying blockchain technology and working on his own vision of what a decentralized peer-to-peer payment network would look like using Bitcoin as an inspiration. What came about was Litecoin and it first went live in late 2011.
Today, Litecoin has a circulating supply of around 62.8 million coins with a maximum limit of 84 million coins in existence. You can instantly see the similarities and differences with Bitcoin and Litecoin. Both have hard limits on the amount of coins that can be created, however unlike Bitcoin’s limit of 21 million coins, there will exist nearly four times as many Litecoin.
Litecoin currently has a market capitalization (number of coins in circulation multiplied by price per coin) of $5.6 billion which places it in fourth place by size. This places it behind Bitcoin, Ethereum, and Ripple. Market capitalization is a useful way to measure the size and acceptance of a cryptocurrency relative to others.
Although Bitcoin and Litecoin share many technical similarities, they do have some important differences as well.
Both Bitcoin and Litecoin were created to provide a decentralized peer-to-peer payment system for the world to use. In other words, both were created to eventually become the worlds new secure, anonymous, and digitized currency that can be sent globally with no regards for borders.
However, they do differ in the ways they go about accomplishing their intended mission.
Firstly, Litecoin is known for having lower transaction fees than Bitcoin. According to bitinfocharts.com, the average transaction fee for a Litecoin transaction was only $.05 while for Bitcoin it was $1.13.
Secondly, the average block time for the creation of a Litecoin block is around 2 minutes, as compared to 8 minutes for a bitcoin block creation. This data is also readily available to you on bitinfocharts.com, which you can access here. This means thats transactions are not only cheaper, but also quicker to be processed in theory.
Another way of saying this is that when compared to an average 8 minutes that it takes a bitcoin miner to add a new block of transactions to the chain, it takes around 2 minutes for a litecoin miner to do so on the litecoin blockchain.
Litecoin was created to serve as a peer-to-peer payment system that is decentralized. Litecoin, along with Bitcoin, Ripple, and many more, is currently one of the front runners in blockchain payment technology that could threaten to disrupt our current global monetary system.