Launched in 2011, Litecoin is one of theearliest cryptocurrencies around. It was designed to facilitate fast andinexpensive transactions, as well as to address the shortcomings of Bitcoin,which is the first ever and largest cryptocurrency. As a digital coin, Litecoincan be bought, traded, and utilized for transactions or investment purposes.
At Voltcoins, we maintain an optimal andclient-centric exchange system where participants can easily buy Litecoin. Ourtop priority is to maintain the highest security standards in all transactions,ensuring seamless and swift fulfillment.
The roots ofLitecoin – What makes it unique?
Charlie Lee, a former Google engineer,created Litecoin to enhance Bitcoin's functionality in multiple aspects. Heachieved this task by “forking” the Bitcoin protocol, which means developing anew version of the original Bitcoin blockchain.
Lee drafted an innovative algorithm thatenabled faster transaction processing, compared to Bitcoin’s sluggish 5transactions per second and a block time of 10 minutes. Note that Litecoin'stransaction speed is 54 TPS (transactions per second) while new blocks on itsblockchain can be generated every 2.5 minutes, owing to the simpler algorithm.
Additionally, Litecoin transactions areassociated with relatively lower fees. Thanks to its blockchain’s technologicalenhancements, not only can users enjoy a lightning-fast transaction experiencecompared to Bitcoin, but also buy Litecoin at a fraction of the cost. Accordingto Coinmarketcap, the average transaction fee for Litecoin is approximately$0.03 to $0.04, in contrast to Bitcoin's pricier $7.60 per transaction.
How does Litecoinwork?
Utilizing blockchain technology, Litecoinsupports the processing and recording of transactions by continuously addingnew blocks of data to its blockchain.
It relies on a consensus protocol, calledproof-of-work, to maintain the integrity of the network. A consensus protocolis the core mechanism of a blockchain that determines the validity oftransactions, verifying whether a transaction is authentic or not.
In the PoW (Proof of Work) mechanism,individuals called miners utilize high-powered computer resources to deciphercomplex mathematical problems, thereby validating transactions. As a result ofmaintaining the functionality of the blockchain, they receive Litecoin ascompensation.
Besidesmining, Litecoin also involves a process called “halving.” At periodic intervals, the process of halvingtakes effect within the Litecoin network, resulting in a reduction (by half) ofthe reward bestowed upon miners who successfully add new blocks to theblockchain.
This mechanism helps to control theinflation rate of Litecoin and ensures that the total number of Litecoin incirculation will never surpass its maximum supply, 84 million. With eachhalving event, Litecoin becomes scarcer, which pushes up its valuation.
At its inception, Litecoin miners wererewarded with 50 LTC for every new block added to its blockchain. However, astime progressed, this reward underwent halving, ultimately reducing to 12.5 LTCper block.
The fate of Litecoin as a popular cryptotoken rests on a delicate balance of key factors, including how many playersare seeking it out and are interested to buy Litecoin as well as the broadercrypto market sentiment.
For instance, a surge in its popularity,as more and more individuals acquire it for purposes of fund transfer orinvestment, is likely to fuel a rise in its worth. According to certainexperts, spending a modest sum in Litecoin can serve as a valuable entry intothe world of cryptocurrency.
At Voltcoins, we integrate highlyencrypted protocols, an easy onboarding process, and educational material tohelp clients efficiently sell or buy Litecoin. Our objective is to simplify theprocess of buying cryptocurrency and make it more accessible for anyone who isinterested in this domain.