Bitcoin vs. Litecoin
Bitcoin (BTC) is the first cryptocurrency ever to be issued, also representing the point zero of the cryptocurrency market and the first digital asset based on blockchain, which is why it is no wonder that all cryptocurrencies that came after Bitcoin are compared to the first and top crypto. Litecoin is especially compared to Bitcoin, given the fact that LTC represents the first cryptocurrency which followed the creation and release of Bitcoin to the public, forming an entire subcategory of digital assets dubbed altcoins. Otherwise known as “Bitcoin’s little brother” as well as “silver to Bitcoin’s gold”, Litecoin stands as the first fork generated from Bitcoin Core code. What are the main and defining differences between Bitcoin and Litecoin, and in which way is Litecoin different from the top crypto, BTC?
Bitcoin vs Litecoin: LTC vs BTC Mining and Protocols
Bitcoin is running on Proof of Work protocol, relying on the process of mining in order to enable transaction validation as well as facilitate generation of new blocks. It takes around 10 minutes for Bitcoin network to create a new block, during which around 7 transactions are completed and verified, thanks to the miners that represent the spinning wheel of the system. Proof of Work is also a protocol of choice for Litecoin as well. However, block generation for LTC takes up to 2.5 minutes, which makes Litecoin a faster option for making transactions as well, especially microtransactions made on the chain. Litecoin and Bitcoin are basically based on the same protocol, while the difference in the mining process is emphasized through the hashing algorithm.
While Bitcoin uses SHA-256 hashing algorithm, Litecoin creators brought a change in the original core code they used for creating LTC and integrated Scrypt hashing algorithm instead. Released in 2011, Litecoin used Scrypt instead of SHA-256, disabling highly competitive mining rigs known as ASICs to gain access to the network and participate in the process of mining. That way, Litecoin creators and developers made sure to reduce the level of competitiveness on the network and among miners, allowing GPU and CPU miners to compete under equality in solving complex mathematical equations in order to validate transactions and enable the generation of new blocks. Bitcoin uses SHA-256, which is why ASICs are holding hegemony over Bitcoin mining as ASIC rigs would always beat CPU and GPU miners.
Bitcoin and Litecoin Transaction Time and Block Generation
Bitcoin takes 10 minutes to generate a new block and during that time miners are able to complete around 7 transactions and provide validation for these transactions, at the same time protecting the network and making sure that there are no cases of double spending on the network. At the same time, Litecoin creators wanted to develop an alternative to Bitcoin in terms of providing a faster solution for transactions on the chain, which is how Litecoin takes 2.5 minutes to generate a new block, becoming four times faster than Bitcoin.
During 2 years after Bitcoin was initially issues and before Litecoin code was released to the public, Litecoin developers on the head with Charlie Lee, figured that Bitcoin lacks scalability, which means that the network does not have the ability to scale in consequently with the growing number of active network users. Litecoin solved a part of that problem by offering a solution for faster transacting and enabling microtransactions.
Bitcoin vs Litecoin Total Supply and Market Price
When it comes to the market value in the live-trading ecosystem of digital assets and cryptocurrencies, Bitcoin is managing to keep the rank of the first and top trading cryptocurrency. The total market capitalization of Bitcoin alone stands at over 60% of the total market cap of over 2,000 different digital assets, while the trend continues even a decade later since Bitcoin was first released to the public and presented as a peer-to-peer digital currency with decentralized authority based on blockchain technology. Litecoin has a significantly lower market capitalization, as well as substantially lower price per unit when compared to Bitcoin, so despite the fact that LTC transactions are faster than transacting via BTC network, Litecoin is circling between 5th and 6th spot on the list of top trading cryptocurrencies in the market. Total supply of the two cryptos is also different. Bitcoin has 21 million units in total supply, while Litecoin has 84 million LTC available in total supply.
Litecoin vs Bitcoin Creators and Dev Team
The original release of Bitcoin in 2009 was somewhat veiled in mystery despite the availability of Bitcoin’s official whitepaper as creators, or a single creator of Bitcoin, published the code under now well-known alias “Satoshi Nakamoto”. Although there are many people and crypto enthusiasts claiming that they are THE Satoshi Nakamoto, the original creator of Bitcoin, none of these claims were yet confirmed. One of the most controversial claims came from Craig Wright, who earned a not-as-flattering nickname “Faketoshi” as Wright never succeeded in proving that he is the person behind the alias Satoshi Nakamoto.
On the other hand, Litecoin has a rather transparent dev team on the head with Charlie Lee, a former Google employee, and CEO and creator of Litecoin. The fact that Bitcoin doesn’t have an official dev team is not enough to stop the general development of the network as Bitcoin network is created as an open-source decentralized system where there is no room for middlemen. Litecoin is likewise decentralized and has an open-source network, which means that contributions to the network can be suggested and pitched by practically anyone who knows how to work with blockchain-based ecosystems used for operating with digital assets.
Is Litecoin Better Than Bitcoin?
Litecoin was created with a goal of improving a certain number of shortcomings that LTC dev team was able to note in the original code of Bitcoin. One of those shortcomings was the inability of Bitcoin to scale with the growing number of network participants, traffic jams and slow transaction times during busy times, and finally high competitiveness among miners due to ASICs. Litecoin solved all of these shortcomings by releasing Litecoin code, still based on the original Bitcoin code. Regardless of improvements facilitated in Bitcoin’s first fork ever to be created, Bitcoin is still the top trading cryptocurrency in the market, as well as most commonly adopted means of payment in the sector of digital assets.
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