What does Litecoin do?
Litecoin forked from Bitcoin in 2011. Like Bitcoin, Litecoin was created to offer its users an online payment system as well as a way to store and transfer value. However, Litecoin aims to facilitate a higher volume of digital transactions than Bitcoin is capable of by offering increased processing speed.
Litecoin is open-source and decentralized. Litecoin is similar to Bitcoin in almost all ways, aside from processing time, total coin supply, and consensus mechanism.
What is LTC used for?
LTC, the native token of the Litecoin network, functions primarily as a method of value transfer. Users can pay merchants as well as carry out peer-to-peer transactions using LTC.
In the same way that some people compare Bitcoin to gold, Litecoin can be compared to silver. LTC is used for the same purposes as BTC, but it is faster. In fact, some believe that Litecoin may replace Bitcoin in time. These people buy Litecoin primarily as an investment and may never actually transfer value using LTC.
How can LTC value appreciate?
By being adopted by more and more merchants, Litecoin will benefit from a high trade volume and also from better liquidity. Increased trading and adoption in countries like Japan and China may also help LTC appreciate.
Many view Litecoin as a cheap alternative to Bitcoin. If users abandon Bitcoin because of its high transaction fees and adopt Litecoin instead, LTC’s value may rise significantly.
What is the difference between Litecoin and its competitors?
Like Bitcoin, Litecoin established itself early in the crypto space and benefits from a large user base as a result. Litecoin’s block generation time is shorter than Bitcoin’s, which makes faster transactions possible. While Bitcoin uses SHA256 as its consensus algorithm, Litecoin uses an algorithm called scrypt, which protects against large mining pools taking control of the network.
Since Litecoin’s cap is 84 million coins, it is better tailored for smaller, day-to-day purchases than Bitcoin, which has a cap of 21 million coins. Litecoin benefits from substantial trade volume and liquidity and is one of the few currencies that can be bought with fiat money.
Litecoin was featured as one of the top cryptocurrencies to buy in our article 5 Best Cryptocurrencies to Buy.
