LTC, Litecoin

How is the cryptocurrency Litecoin (LTC)?

One of the more classic altcoin that has showed a remarkable entity within the crypto market and had a remarkable performance since the beginning is Litecoin (LTC), which was created by a former Google employee named Charlie Lee.
Litecoin, LTC

What is Litecoin?

Litecoin (LTC) is a P2P (Peer-to-Peer) cryptocurrency that was created based on the Bitcoin blockchain with the difference of the algorithm used to generate the hashes (the alphanumeric codes to compound each block) and the time to complete the transaction. 

When was this cryptocurrency launched?

LTC was launched through an open source client program run on the GitHub platform in October 2011 and its network was operational five days later to operate globally. The Electrum Litecoin wallet, based on the original Bitcoin, was also launched.

Why was this cryptomoney created?

The intention of this cryptocurrency creators was to design a "Lite" or light version of Bitcoin referencing as silver, if bitcoin is considered as digital gold. It was designed to be an alternative to bitcoin, like many others and hence the name altcoins, but this one has been focused more on lower value transactions so that its value can be also fragmented into 8 decimals as well as bitcoin, which have been named "litetoshis" in honor of Satoshi Nakamoto as well.  

Litecoin and Mining

The Litecoin's new units, like Bitcoin, are generated (mined) based on the consensus "Proof of Work" (PoW) consensus (see mining article). Similarly, every 4 years, after its "halvings" there is a reduction in the mining rewards up to becoming zero when all the coins have been mined being the Total Supply 84 million LTCs (four times the BTC’s Total Supply). At the time of writing this article, there are 65.88 million LTCs in circulation which represents the Circulating supply.  

Litecoin is intensively mined with an algorithm called Scrypt different from the BTC’s one, and its mining is suitable for GPU (Graphics Processing Unit) forming large mining "pools" just like the BTC Core Code.

Litecoin mining

There are now greater incentives in Litecoin's mining than the Bitcoin's one as it distributes 12.5 new LTCs per block as rewards (double than bitcoin’s rewards) after passing through its second halving

Litecoin and Bitcoin: differences

As far as the technical aspects are concerned, there are many similarities, but there are also some differences mainly in the network, which should be pointed out:

  • Its total supply is 4 times higher than the BTC’s one, which is 84 million units. 
  • Each block is processed every 2.5 minutes on average which makes the transactions faster than with BTC, since BTC does it every 10 minutes.
  • Its PoW algorithm uses the Scrypt function which is a sequential hard memory function that does not require sophisticated equipment for its mining. 

Market Performance

Currently this cryptocurrency has a price of 62.87 dollars with a rank 7 in the CoinMarketCap list, so we are before a crypto very consolidated crypto within group of classic altcoins, alongside with Bitcoin Cash, Etherium, Tether and Ripple among others. 

Litecoin graph

Source: CoinMarketCap

Historically, this cryptocurrency became the second largest crypto on the market in April 2013, achieving a price of $3.80 and representing the 3% of the BTC value at the time. 

Following the trail of the Bitcoin, it reached its historical maximum (All time High) on 19th December 2017 with a market price at that time of USD 375.29, as opposed to its historical minimum (All time Low) in January 2015 with a price at that time of USD 1.11.

Its ROI (Return of Investment) which is the total Return Rate is 1,358.94% according to CoinMarketCap data.

Currently it has a market capitalization of more than 4.1 billion dollars and a daily volume of more than half of that figure, as it can be seen in the table above.

Litecoin managed to become the second largest crypto in April 2013 when it could be traded at USD 3.80, but it was in December 2017 that it reached an all-time high value with a price over USD 375

Which Exchanges can we buy and sell this cryptocurrency?

It is listed in most of the exchanges having a great daily volume in exchanges such as Binance, Huobi Global and HBTC. A list of these exchanges can be viewed by clicking on the Market Pairs tab of the CoinMarketCap website. The most common pairs are LTC/USD, LTC/USDT, LTC/BTC and LTC/ETH.  

LTC Ratings in the Market

LTC has a Fundamental Crypto Asset Score (FCAS) of 720 behind Etherium which has the highest score, Zcash and the Ox protocol (ZRX) (See the article on the Ox), this ratio measures factors such as user and developer activity (their community) and market maturity. 

Source: CoinMarketCap and Flipside Crypto

The aspects that score highest are its token economy, its technical equipment and the its ecosystem structure, according to other metrics from SIMETRI and TokenInsight Rating. 

In summary, LTC came to bring innovation to the crypto market respecting BTC by introducing improvements in terms of speed, an improved algorithm, less complex mining process and a real alternative to the BTC even though it may not have been as successful as BTC as it was expected.