What is Litecoin?
Litecoin was born October 6, 2011 by Charlie Lee, a former Google employee. Litecoin is a modified, faster and more economical version of Bitcoin via an open source client on GitHub. It operates on an open source software. Litecoin (LTC) is a peer-to-peer decentralized online currency used for purchase and transactions online. Like many other coins (, Litecoin provides merchants with an easy and quick way to accept payments. All payments made online are recorded by an item called the “blockchain’, this item help receivers to quickly verify payments. In May 2017, Litecoin became the first cryptocurrency in the world to upgrade to segregated Witness (Segwit). Later that year, Lightning network transaction was completed via Litecoin. Litecoin having a decentralized system means that there is no centralized authority, building or headquarters for Litecoin. The currency flows freely on the internet.
Difference between Litecoin and other Cryptocurrencies
There are over 1,300 Cryptocurrencies in existence today, Bitcoin which is a close rival of Litecoin seems to be the most widely recognized of them all. By market capital and value, there are five widely recognized cryptocurrencies which are Bitcoin, Ethereum, Bitcoin cash, Ripple and Litecoin.
Litecoin being the closest rival to Bitcoin, boasts of a limited transaction time, unlike Bitcoin and other cryptocurrencies, transactions in Litecoin takes about two minutes to go through while transactions are done with Bitcoin take over 300 minutes.
What is LitePay?
Litepay is basically an infrastructure payment to allow businesses to accept Litecoin payments. Outside of trading, merchants can deal with litecoin holders and keep their sales in fiat. Basically when a payment from the customer is made to a merchant. or seller, the amount will be directly transferred from the buyer’s wallet to the seller’s account in dollars. The company also offers a debit card that is powered by Visa which enables users to convert Litecoin to dollars and vice versa. In simpler terms, wherever Visa is accepted, litecoin is exchangeable. The debit card would allow withdrawing Litecoins in cash from any random ATM. In addition, Litepay addresses the issue of price volatility with insuring instant transactions.
Litepay is currently the fastest processor that completes crypto to fiat transactions and it doesn’t take ages. It is also the cheapest so far with extremely low fees, thus bringing exceptional utility. This new payment system is viewed by many as the game changer since the payment-focused company is trying to intermingle the crypto world and real world. This will hopefully spark further innovations and competition for implementing more features that will make real world usage of cryptos a reality.
Litecoin Pros and Cons
- Faster transactions, faster payments and an almost zero transaction and payment fee compared to bitcoin.
- Availability of a new scrypt of algorithm facilitates easier and faster mining.
- Litecoin has the flexibility to implement such technologies as segwit and lightning network.
- Atomic swaps with Bitcoin affords merchants the opportunity to convert Litecoin to Bitcoin and Bitcoin to Litecoin directly within the blockchain’, no intermediaries.
- Litecoin is the second biggest coin in terms of world recognition behind Bitcoin.
- Litecoin is gradually becoming one of the technologically advancing currencies in the market. Experts have revealed that this technological advancement makes Litecoin the cryptocurrency that can substitute flat money like the British pounds and the Euros for millions of users in years to come.
- Another technological advancement is “Segwit”. Segregated Witness (Segwit) allows technologies like lightning network (second layer payment protocol), make transactions quickly, cheaper and anonymously.
- Litecoin is fit for small business transactions because of its almost zero transaction fee.
- Unlike other cryptocurrencies, Litecoin uses the new scrypt algorithm which increases a large amount of RAM (Random Access Memory) to mine.
- The security on Litecoin wallet is top-notch. While it gives users normal access it safeguards against malware attack. Users will have to enter their password whenever they want to spend a coin, this feature means that only the user has the right to spend coins.
- Unlike Bitcoin blockchain which generates 1mega byte every 10 minutes, Litecoin generates 1 megabyte every 2.5 minutes. Quicker generations done by Litecoin enables higher volumes of transactions.
- Unlike most cryptocurrencies, Litecoin is easier to use and mine
- Its decentralized system makes it more secure than paper currency.
- Segregated Witness (Segwit) has been introduced by Bitcoin, this announcement will reduce the uniqueness and greater use of this cryptocurrency.
- Litecoin is not the fastest and not the cheapest crypto. One such cryptocurrency, Nano, actually has no fees and is instantaneous.
- Litecoin, like every other altcoin, is simply a modified version of Bitcoin.
- If Bitcoins scaling issues are solved, it could overtake Litecoin as the next cryptocurrency to substitute flat money.
- Litecoin users are fewer, making sales and purchase of coins difficult.
- Litecoin is not perfect for high volume purchase compared to other cryptocurrencies like Bitcoin
- Litecoin blockchain generates a total of 4 megabytes every 10 minutes (1 megabyte every 2.5 minutes). This means that Litecoin’s blockchain will grow faster at that rate resulting in the installment of “fullnode” a rather expensive solution.
- Having a block (megabyte) every 2.5 minutes will likely result in a block (encrypted information) simultaneously being found by different Litecoin miners.