Author Topic: Litecoin Intro  (Read 169 times)

Charlili

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Litecoin Intro
« on: February 07, 2018, 03:36:39 am »
Litecoin is an open-source peer-to-peer cryptocurrency based on the model of Bitcoin.  As most of the digital currencies in the crypto space, Litecoin operates in a global, decentralized manner without any central authorities. Litecoin was founded in October 2011 by MIT graduate, former Google engineer and Coinbase employee, Charlie Lee.

While Bitcoin is considered as the digital gold, the cryptocurrency community calls Litecoin as the digital silver.
Litecoin is managed by the Litecoin Foundation with its board of directors including founder Charlie Lee, Xinxi Wang, and Franklyn Richards.  The Litecoin Foundation is a non-profit organization registered in Singapore. The Litecoin Foundation objective is to advance Litecoin for the good of the society by developing and promoting state-of-the-art blockchain technologies.

In technicalities, Litecoin is almost identical with Bitcoin, however, Litecoin differs at some points from the leading cryptocurrency. Firstly, the Litecoin network aims to process a block every 2.5 minutes, which is in contrast with the Bitcoin networks 10 minutes block procession. Litecoin developers claim that the 2.5 minute block procession rate allows a faster transaction confirmation.
Furthermore, instead of using SHA-256, the Litecoin network utilizes Scrypt for its Proof of Work (PoW) algorithm. Scrypt is a memory-hard function that requires asymptotically more memory compared to a non-memory-hard algorithm. Due to Litecoin Scrypt Proof of Work algorithm, industrial mining equipment, such as ASIC or FPGA, are more complex to create along with a more expensive production. ASIC mining devices are said to have a centralizing effect on cryptocurrency networks since these devices are expensive, thus, mostly mining pools and organizations can afford them. As Scrypt complicates the production and the sale of these devices, the Litecoin network can potentially operate in a more decentralized manner.