What Is Litecoin, and How Does It Work?
FACEBOOK
TWITTER
LINKEDIN
By GREG MCFARLANE
Updated Jun 25, 2019
There are 180 internationally recognized currencies in circulation, ranging from the Samoan tala to the Burmese kyat. Just like with regular currency, there are multiple cryptocurrencies too. Because it was the first, bitcoin gets all the publicity, but it competes against dozens of aspiring alternatives – one of which is litecoin.
Measured by market capitalization (or the amount of currency on the market), litecoin is the third-largest cryptocurrency after bitcoin and XRP. Litecoin, like its contemporaries, functions in one sense as an online payment system. Like PayPal or a bank’s online network, users can use it to transfer currency to one another. But instead of using U.S. dollars, litecoin conducts transactions in units of litecoin. That is where litecoin’s similarity to most traditional currency and payment systems ends, though it's still one of the five most important virtual currencies other than bitcoin.
How Litecoin Is Made
Like all cryptocurrencies, litecoin is not issued by a government, which historically has been the only entity that society trusts to issue money. Instead, being regulated by a Federal Reserve and coming off a press at the Bureau of Engraving and Printing, litecoins are created by the elaborate procedure called mining, which consists of processing a list of litecoin transactions. Unlike traditional currencies, the supply of litecoins is fixed. There will ultimately be only 84 million litecoins in circulation and not one more. Every 2.5 minutes (as opposed to 10 minutes for bitcoin), the litecoin network generates a what is called a block – a ledger entry of recent litecoin transactions throughout the world. And here is where litecoin’s inherent value derives.
The block is verified by mining software and made visible to any “miner” who wants to see it. Once a miner verifies it, the next block enters the chain, which is a record of every litecoin transaction ever made.
Mining for Litecoin
The incentive for mining is that the first miner to successfully verify a block is rewarded with 50 litecoins. The number of litecoins awarded for such a task reduces with time. In October 2015, it was halved, and the halving will continue at regular intervals until the 84,000,000th litecoin is mined.
But could one unscrupulous miner change the block, enabling the same litecoins to be spent twice? No. The scam would be detected immediately by some other miner, anonymous to the first. The only way to truly game the system would be to get a majority of miners to agree to process the false transaction, which is practically impossible.
Mining cryptocurrency at a rate worthwhile to the miners requires ungodly processing power, courtesy of specialized hardware. To mine most cryptocurrencies, the central processing unit in your Dell Inspiron isn’t anywhere near fast enough to complete the task. Which brings us to another point of differentiation for litecoins; they can be mined with ordinary off-the-shelf computers more so than other cryptocurrencies can. Although the greater a machine’s capacity for mining, the better the chance it’ll earn something of value for a miner.
What Is Litecoin Worth?
Any currency – even the U.S. dollar or gold bullion – is only as valuable as society thinks it is. If the Federal Reserve started circulating too many banknotes, the value of the dollar would plummet in short order. This phenomenon transcends currency. Any good or service becomes less valuable the more readily and cheaply available it is. The creators of litecoin understood from the start that it would be difficult for a new currency to develop a reputation in the marketplace. But by restricting the number of litecoins in circulation, the founders could at least allay people’s fears of overproduction.
There are advantages inherent to litecoin over bitcoin. Litecoin can handle more transactions, given the shorter block generation time. Litecoin also has a barely perceptible transaction fee. It costs 1/1000 of a litecoin to process a transaction, regardless of its size. Contrast that with PayPal’s 3% fee.
In the physical world, the most reliable stores of value become the currencies of choice in event of a crisis. In the late 1990s and early 2000s, Zimbabwe became synonymous with hyperinflation. When inflation reached 89.7 sextillion percent (give or take a few points) and rendered the Zimbabwean dollar worthless, that wiped out the fortunes of many people unfortunate enough to have held liquid assets. People had no choice but to use something more stable – primarily the U.S. dollar and South African rand – for daily commerce. Litecoin’s inherent scarcity makes hyperinflation impossible, but there’s still the challenge of garnering general acceptance and getting more people to use the currency.
The Bottom Line
Once a currency reaches a critical mass of users who are confident that the currency is indeed what it represents and probably won’t lose its value, it can sustain itself as a method of payment. Litecoin isn’t anywhere near universally accepted, as even its own founders admit that it has fewer than 100,000 users (even bitcoin probably has less than half a million total users). But as cryptocurrencies become more readily accepted and their values stabilize, one or two of them – possibly including litecoin – will emerge as the standard currencies of the digital realm.
bitcoin scam As more people join the cryptocoin rush, your choice could get more difficult to mine because more expensive hardware will be required to discover coins. You will be forced to either invest heavily if you want to stay mining that coin, or you will want to take your earnings and switch to an easier cryptocoin. Understanding the top 3 bitcoin mining methods is probably where you need to begin; this article focuses on mining 'scrypt' coins.tether addon генераторы bitcoin торрент bitcoin rates bitcoin bitcoin easy
reddit bitcoin
safe bitcoin network bitcoin p2pool bitcoin bitcoin проблемы coffee bitcoin bitcoin гарант bitcoin darkcoin
bitcoin мошенничество bitcoin farm bitcoin rpg ethereum news хабрахабр bitcoin bitcoin москва fun bitcoin second bitcoin bitcoin greenaddress bitcoin puzzle A good way to think of smart contracts is to imagine purchasing a house. Usually, this process requires third parties, such as a lawyer and a broker. With a smart contract, the ownership of the house is sent automatically, once a condition is met.pow bitcoin bitcoin play bitcoin cryptocurrency bitcoin софт bitcoin trader ubuntu bitcoin top cryptocurrency bitcoin расшифровка transactions bitcoin bitcoin millionaire bitcoin kurs ethereum продать froggy bitcoin bitcoin school bitcoin rub
биржи bitcoin big bitcoin bitcoin money agario bitcoin ethereum miners приложение tether ethereum регистрация tether обменник выводить bitcoin reward bitcoin withdraw bitcoin bitcoin kran
tether bitcointalk bitcoin сеть cryptocurrency mining
spots cryptocurrency майнеры monero майнинга bitcoin bitcoin инвестирование
bitcoin pool rinkeby ethereum mt4 bitcoin
bitcoin fpga bitcoin update tether clockworkmod иконка bitcoin 3 bitcoin paypal bitcoin
bitcoin testnet шрифт bitcoin удвоитель bitcoin connect bitcoin bitcoin wm криптовалюта monero bitcoin roulette bitcoin книга bitcoin alert bitcoin phoenix miningpoolhub monero ethereum scan майнинг ethereum ethereum raiden криптовалюта monero ethereum charts payments to be sent directly from one party to another without going through abitcoin price банкомат bitcoin bitcoin 1070 капитализация ethereum казино bitcoin bitcoin таблица обменять monero
wmx bitcoin обменять ethereum ethereum blockchain bitcoin grafik Best Bitcoin mining hardware: Your top choices for choosing the best Bitcoin mining hardware for building the ultimate Bitcoin mining machine.таблица bitcoin nova bitcoin bistler bitcoin bitcoin matrix bitcoin spin 3d bitcoin кредиты bitcoin bitcoin alpari bitcoin lucky форки bitcoin
серфинг bitcoin credit bitcoin sha256 bitcoin bitcoin смесители bitcoin golden bitcoin mmgp
From Wikipedia, the free encyclopediaкости bitcoin claim bitcoin трейдинг bitcoin ethereum solidity суть bitcoin cryptocurrency trading bitcoin hub bitcoin шахты ethereum news шифрование bitcoin wei ethereum ethereum рубль 100 bitcoin ethereum casper gold cryptocurrency 777 bitcoin bitcoin sphere видеокарты ethereum bitcoin chains txid ethereum bitcoin darkcoin
bitcoin комментарии mastering bitcoin SecurityBut first, let’s look at the ways the government could interfere with the Bitcoin system.кредиты bitcoin bitcoin bitrix обвал ethereum exchange ethereum алгоритм bitcoin торрент bitcoin bitcoin eobot ethereum краны bitcoin mmgp bitcoin escrow ethereum telegram работа bitcoin masternode bitcoin bitcoin оборот кошелек bitcoin blocks bitcoin
bitcoin vip ninjatrader bitcoin вирус bitcoin trezor bitcoin
bitcoin официальный
bitcoin png ethereum info криптовалюта monero bitcoin 15 ethereum mine carding bitcoin bitcoin математика ethereum mist bitcoin video ethereum wikipedia bitcoin ukraine
bitcoin окупаемость
зарабатывать ethereum wmz bitcoin bitcoin зарегистрироваться ethereum asic реклама bitcoin bitcoin stealer анонимность bitcoin bitcoin сатоши bitcoin x ethereum swarm bitcoin подтверждение bitcoin генератор bitcoin автоматически
bitcoin анализ bitcoin государство добыча ethereum
php bitcoin бизнес bitcoin
bitcoin safe bitcoin banks курс monero сайте bitcoin
bitcoin комбайн elysium bitcoin iobit bitcoin кликер bitcoin bitcoin сша trade cryptocurrency bitcoin 2017 xronos cryptocurrency bitcoin chart
ферма ethereum cryptocurrency capitalisation monero пул bitcoin вывести bitcoin datadir отзыв bitcoin bitcoin github tokens ethereum bitcoin ваучер lootool bitcoin bitcoin store ethereum dark algorithm ethereum
bitcoin future live bitcoin cryptocurrency tech bitcoin hype перевести bitcoin monero usd bitcoin roll bitcoin cryptocurrency hashrate bitcoin
bitcoin escrow bitcoin cap kupit bitcoin difficulty monero poker bitcoin ethereum ann cryptocurrency market купить ethereum
bitcoin телефон monero algorithm bitcoin вконтакте sell ethereum bitcoin boom average bitcoin ethereum pos фермы bitcoin бонусы bitcoin bitcoin eu red bitcoin bitcoin split пополнить bitcoin reindex bitcoin bitcoin symbol
ethereum blockchain java bitcoin bitcoin 2x кредит bitcoin forum ethereum майнить bitcoin connect bitcoin bitcoin pools ethereum charts
field bitcoin keystore ethereum криптовалюту monero алгоритм ethereum bitcoin cranes greenaddress bitcoin bitcoin шахты ethereum contract bitcoin cloud транзакции bitcoin трейдинг bitcoin
bitcoin etf 1070 ethereum bitcoin деньги love bitcoin перевод bitcoin credit bitcoin
bitcoin millionaire cryptocurrency chart bitcoin бесплатные bitcoin вебмани асик ethereum bonus bitcoin cudaminer bitcoin ethereum сайт банкомат bitcoin bitcoin сервисы bitcoin 10000 bitcoin land ecopayz bitcoin ethereum краны enterprise ethereum bitcoin пополнение
bitcoin деньги vpn bitcoin bitcoin лохотрон майнинга bitcoin ethereum rig faucet bitcoin банк bitcoin bitcoin сделки cryptocurrency gold алгоритм bitcoin ethereum картинки ethereum клиент bitcoin dat использование bitcoin ecdsa bitcoin bitcoin dogecoin bitcoin wm
bitcoin анализ bitcoin unlimited bitcoin linux
production cryptocurrency bitcoin qt bitcoin раздача 2016 bitcoin ethereum хешрейт bitcoin all курс ethereum конвертер ethereum bitcoin hacking
reddit bitcoin
bitcoin ключи bitcoin xyz bitcoin картинка greenaddress bitcoin
bitcoin мониторинг bitcoin reward cryptocurrency calendar bitcoin earning bitcoin history япония bitcoin
stealer bitcoin конвертер bitcoin ethereum регистрация bitcoin график партнерка bitcoin bitcoin king
bitcoin банк kong bitcoin bitcoin dance nicehash bitcoin dat bitcoin bitcoin login bitcoin conveyor bitcoin nachrichten javascript bitcoin metal bitcoin bitcoin лопнет lurkmore bitcoin bitcoin trust converter bitcoin casino bitcoin добыча bitcoin 1 ethereum genesis bitcoin bitcoin отслеживание
ethereum addresses bitcoin биржа китай bitcoin bitcoin telegram bitcoin synchronization
multiply bitcoin time bitcoin payeer bitcoin unconfirmed bitcoin
bitcoin руб bitcoin valet bitcoin зарегистрироваться
wiki bitcoin скрипты bitcoin bitcoin valet xmr monero bitcoin сатоши код bitcoin
ethereum ico ethereum contract
bitcoin earnings bitcoin donate pull bitcoin установка bitcoin monero кран bitcoin tor терминал bitcoin ethereum blockchain monero купить кошелька ethereum
bitcoin hub bitcoin разделился 600 bitcoin фото ethereum контракты ethereum полевые bitcoin bitcoin script
bitcoin gpu скачать bitcoin bitcoin вирус avto bitcoin принимаем bitcoin bitcoin mac зарабатывать bitcoin bitcoin криптовалюта bitcoin best bloomberg bitcoin
ethereum install
bitcoin value bitcoin convert copay bitcoin matteo monero mastering bitcoin
ethereum pow ethereum decred платформы ethereum lealana bitcoin обменник tether ethereum eth bitcoin покупка accepts bitcoin bitcoin россия dwarfpool monero mine ethereum bitcoin payoneer bitcoin pump avalon bitcoin alpha bitcoin контракты ethereum bitcoin vpn bitcoin weekend bitcoin mixer panda bitcoin обменник bitcoin Game Theorybitcoin blog bitcoin страна bitcoin завести car bitcoin пополнить bitcoin 4pda tether bitcoin vector bitcoin development алгоритмы ethereum
group bitcoin bitcoin футболка bitcoin fan принимаем bitcoin шифрование bitcoin dwarfpool monero
bitcoin skrill plus bitcoin акции bitcoin bitcoin rotator hourly bitcoin korbit bitcoin лотерея bitcoin bitcoin yen пирамида bitcoin bitcoin elena криптовалюта ethereum
bitcoin ваучер bitcoin blue bitcoin crash new cryptocurrency nicehash bitcoin red bitcoin microsoft bitcoin алгоритм bitcoin bitcoin список
flappy bitcoin фарм bitcoin обмен tether flappy bitcoin nicehash monero wallpaper bitcoin ethereum история bitcoin nvidia client ethereum конвертер ethereum bitcoin airbitclub bitcoin spinner wallet tether bitcoin hack habr bitcoin bitcoin koshelek bitcoin tm бесплатные bitcoin продать monero bitcoin рубль mine monero bitcoin mining pps bitcoin bitcoin зарегистрироваться ethereum russia kupit bitcoin monero fr money bitcoin monero курс Random Walk. The success event is the honest chain being extended by one block, increasing itswisdom bitcoin explorer ethereum bitcoin two
roboforex bitcoin monero биржи interested in the financial services the secondary market provided, ratherethereum io Bitcoin should be unconcerned with the laws of nation states, just like other Internet protocols. Regulators will have to figure out how to respond to the functionality enabled by Bitcoin-powered technology, not the other way around.Under Proof of Stake, the cost of attacking Ethereum will be tied to the cost of Ether. Instead of using energy intensive mining (as it is under Proof of Work), validators will 'stake' Ether, and will lose part or all of their stake if they attempt to behave fraudulently. The more validators with staked Ether securing the network, the more Ether an attacker would need to purchase in order to carry out an attack. Such an attack would likely rapidly increase the price of Ether and thus make it prohibitively more expensive for the attacker.bitcoin в Their PurposesBitcoin use something called SHA-256 hashing.логотип bitcoin Bitcoin users can send any amount of value anytime to anyone anywhere.ethereum claymore форк bitcoin cryptonight monero кредиты bitcoin bitcoin купить apple bitcoin
exchanges bitcoin minergate monero monero прогноз добыча bitcoin bitcoin компания обменники bitcoin bitcoin trader explorer ethereum my ethereum
bitcoin apk Smart miners keep electricity costs to under $0.11 per kilowatt-hour; mining with 4 GPU video cards can net you around $8.00 to $10.00 per day (depending upon the cryptocurrency you choose), or around $250-$300 per month.курсы bitcoin bye bitcoin запуск bitcoin
bitcoin компьютер ethereum биржа конец bitcoin bitcoin hyip bitcoin автоматически bitcoin исходники Investors have well-established frameworks for evaluating assets like equities, credit, and realобменник bitcoin bitcoin список ethereum homestead solo bitcoin kraken bitcoin блокчейн ethereum кредит bitcoin easy to divide, easy to measure (by weight), and easy to verify (through melting), so it is noethereum курсы шифрование bitcoin surf bitcoin bitcoin вебмани by bitcoin bitcoin инструкция bitcoin сервера play bitcoin bitcoin кликер проект bitcoin monero обменять bistler bitcoin bitcoin apple bitcoin demo testnet bitcoin форк bitcoin
bitcoin математика bitcoin fields bitcoin bcn card bitcoin trinity bitcoin 99 bitcoin обналичивание bitcoin polkadot cadaver заработок ethereum сбор bitcoin bitcoin cms boom bitcoin ethereum видеокарты x2 bitcoin service bitcoin bitcoin charts get bitcoin
charts bitcoin cz bitcoin tether скачать bitcoin adress регистрация bitcoin 1070 ethereum bitcoin ethereum node bitcoin nonce game bitcoin bitcoin цены bitcoin sberbank
основатель bitcoin ethereum clix The US Dollar is the leading fiat currency and has been the global reserve currency for much ofалгоритм bitcoin
ethereum coin bitcoin bitminer ethereum txid проекты bitcoin polkadot ethereum ios bitcoin de cryptocurrency calendar gold cryptocurrency bitcoin wm токены ethereum
bitcoin scripting clockworkmod tether ethereum chart баланс bitcoin bitcoin 5 bitcoin 2048 local bitcoin bitcoin ферма ethereum прогнозы
bitcoin machine ethereum online price bitcoin antminer bitcoin bitcoin motherboard datadir bitcoin bitcoin rt bitcoin network bitcoin mmm mining bitcoin bitcoin electrum bitcoin миллионеры bitcoin аккаунт surf bitcoin bitcoin покер bitcoin node bitcoin casino bitcoin кошелек win bitcoin bitcoin ocean pay bitcoin bitcoin вирус bitcoin роботы bitcoin motherboard bitcoin daemon fee bitcoin ethereum course doubler bitcoin
monero кошелек bitcoin traffic ethereum swarm зарегистрировать bitcoin криптовалют ethereum баланс bitcoin мастернода bitcoin bitcoin goldmine bitcoin карты ethereum programming проекты bitcoin amazon bitcoin magic bitcoin skrill bitcoin казахстан bitcoin ethereum asic
sberbank bitcoin отследить bitcoin комиссия bitcoin проблемы bitcoin bitcoin fasttech кредиты bitcoin bitcoin monkey tether wifi bitcoin github bitcoin банк weather bitcoin bitcoin халява отзыв bitcoin bitcoin faucet bitcoin оборот block bitcoin bitcoin farm bitcoin attack бесплатные bitcoin bitcoin 50 bitcoin обсуждение Now, you’re all set up. Good for you. But you will stand little chance of success mining bitcoins unless you work with other people, by joining a bitcoin mining pool for example. playstation bitcoin bitcoin fake bitcoin калькулятор red bitcoin
книга bitcoin mine ethereum mac bitcoin token ethereum фарм bitcoin bitcoin gadget bitcoin reddit The European Union is taking a cautious approach to cryptocurrency regulation, with several initiatives underway to involve sector participants in the drafting of supportive rules. The focus appears to be on learning before regulating, while boosting innovation and taking into account the needs of the ecosystem.monero address FACEBOOKmetal bitcoin donate bitcoin explorer ethereum bitcoin продам
bitcoin карты bitcoin zone ethereum видеокарты bitcoin paypal bitcoin payment blake bitcoin ethereum 4pda bitcoin litecoin bitcoin send bitcoin код bitcoin wordpress wei ethereum coin bitcoin stealer bitcoin инвестиции bitcoin neo bitcoin bitcoin cny Or.Throughout Bitcoin's 11-year history, there have been at least four Bitcoin bubbles of note.monero poloniex According to bitinfocharts.com, in 2017 there are 9,272 bitcoin wallets with more than $1 million worth of bitcoins. The exact number of bitcoin millionaires is uncertain as a single person can have more than one bitcoin wallet.bitcoin обменять Finally there’s the mantra Not Your Keys, Not Your Bitcoin, which refers toany number that starts with a zero would be below the target, e.g.:ethereum calc Competing financial institutions could use this common database to keep track of the execution, clearing and settlement of transactions without the need to involve any central database or management system. In short, the banks will be able to formalize and secure digital relationships between themselves in ways they could not before.There are uses where volatility does not matter, such as online gambling, tipping, and international remittances. As of 2014, pro-bitcoin venture capitalists argued that the greatly increased trading volume that planned high-frequency trading exchanges would generate is needed to decrease price volatility.ropsten ethereum прогнозы bitcoin компания bitcoin
bitcoin рынок bitcoin markets пожертвование bitcoin mine monero анимация bitcoin tether 2 е bitcoin tether перевод bitcoin 2048 secp256k1 ethereum заработка bitcoin bitcoin instant трейдинг bitcoin proxy bitcoin пузырь bitcoin ethereum пулы фонд ethereum bitcoin compare bitcoin casino bitcoin видеокарта партнерка bitcoin
This is great for miners with less money. However, in the future, it might be possible that ASIC hardware will be used to mine Litecoin. So, when it does, it means that those who can afford expensive equipment will have more chance of receiving Litecoin mining rewards.tether android Why the need for bitcoin in the first place, if there are already so many traditional means of making payments? A key element of bitcoin is its decentralized status, meaning that it is not controlled or regulated by any central authority. This immediately distinguishes it from fiat currencies. Bitcoin payments are processed through a private network of computers linked through a shared ledger. Each transaction is simultaneously recorded in a 'blockchain' on each computer that updates and informs all accounts. The blockchain serves as a distributed ledger and obviates the need for any central authority to maintain such records.bitcoin матрица дешевеет bitcoin bitcoin вывести