Litecoin rests at sixth position in the crypto market. Litecoin uses the same technology of blockchain as of Bitcoin. The only difference between both is that the Bitcoin limit is set as 21 million and the Litecoin limit is 84 million coins. By “limit”, we here mean the number of coins that can be mined in the future.
In contrast with Ethereum, Litecoin has limited coins whereas Ether has no limit and Ethereum is far more than just a coin. Ethereum provides a platform for other services like smart contracts.
Litecoin in Nutshell
Bitcoins created by Mr. CharlieLee who is an ex-Google employee. Litecoincame in the circulation from October 2011, released as an open-source on GitHub. Its features are quite similar to Bitcoin because, at the time of creation, an update of Proof-Of-Work (POW) blockchain issued but some miners did not agree on that update, so as a result in the fork. The fork is a situation when miners of Blockchain disagree on an update, hence the blockchain split into two, and that fork became the Litecoin.
The transactions are much cheaper than bitcoin as it uses a script algorithm. It handles tasks serially. It provides fast transaction speed thus, benefiting intraday traders.
Litecoin Atomic swaps
It’s the most thrilling feature of Litecoin. It eliminates the need for the third party in the cross exchanging of coins.
For instance, in absence of Atomic Swaps, if Mr. A had 1 bitcoin and he wanted 100 litecoins in return, he would normally have to go to an exchange and pay certain fees to get it done.
But with Atomic Swaps, suppose Mr. A has 1 BTC and Mr. B has 100 LTC, they could simply swap their coins with each other, without going through an exchange and paying any unnecessary transaction fees.
This features works by using the Hashed Timelock Contracts(HTLCs).
Difference between Bitcoin, Litecoin and Ethereum at a glance
|Basis of Distinction||Bitcoin||Lite coin||Ethereum|
|1. Evolving Year||2009||2011||2015|
|2. Founder||Satoshi Nakamoto is name used for pseudonymous person or persons who developed bitcoin.||Founder of Lite coin is Mr Charlie Lee who is an ex Google employee.||Mr Vitalik Buterin developed Ethereum.|
|3. Purpose||It only serves the purpose of concurrency.||It is an improved version of bitcoin, as it takes lesser time in performing the transactions and is cheap too.||Ethereum is more than a crypto currency, it is a platform for many applications, and one of them is Smart Contracts.
Ether is the native currency that is bought and sold on the exchanges.
|4. Algorithm||By using SHA-256, bitcoin block chain performs tasks in a parallel manner||Crypt allows to perform task in a serial manner.||Ethane algorithm adjusts its difficulty in such a way on average, one block is produced by the network every 12 seconds.|
|5. Transaction Speed||Bitcoin takes 10 minutes in completion of transaction.||Lite coin takes 2.5 minutes for completing a transaction.||Ethereum is fastest among them, it takes only 4-5 seconds in completion of transaction.|
|6. Average Transaction Fee||Depending upon the number of blocks, transaction fee charged by bitcoin range from $0.16 - $0.32.||Lite coin charges $0.05 on an average.||It is fees has increased from $0.11 to $0.39|
|7. Coin Limit||Limit of Bitcoin is set at 21 million Bitcoins||Limit of Lite coin is set at 84 million Lite coins.||Ethereum has no mining limit.|
|8. Mining Time||It takes 10 minutes to create 12.5 new Bitcoins.||The block speed for Lite coin is roughly 2.5 minutes, around 576 blocks generated per day.||It takes 15 seconds to create 3 new Ethers.|
Litecoin is considered a lighter version of Bitcoin. It has better transaction speed than bitcoin but the high speed of transactions sometimes results in an orphaned block that is the major disadvantage of Litecoin. Orphaned blocks occur when two Litecoin miners produce blocks at similar times.
Ethereum is free from this obstacle thus enjoys a high transaction speed of 4-5 seconds.
The coin limit of Litecoin is 84 million Litecoin that is 63 million more than Bitcoin whereas Ethereum has no limit, but having no limit grants the authority to Ethereum labs to release the coins according to their will or market condition, this shifts the control towards centralization.
Litecoin is seen as the alternate of bitcoin, while Ethereum is far different from both of these. Ethereum attracts the attention of developers who see it as a platform for many applications. With all the pros and cons, Bitcoin is still considered as the “Daddy” of the crypto market.