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COINPEDIA.BHV: LITECOIN

According to the official website, Litecoin (LTC / USD) is “a peer-to-peer Internet currency that enables instant, near-zero cost payments to anyone in the world. Litecoin is an open source, global payment network that is fully decentralized without any central authorities.”

If you have previously heard about Bitcoin (BTC), then this definition will seem very familiar. The truth is that Litecoin is based on the same open source code as Bitcoin, but it possesses some technological differences. Litecoin was not created in order to replace bitcoin, but to become an additional mean of payment– Litecoin to Bitcoin is similar to what silver is to gold. Our brief will help you understand the difference and easily distinguish between the two crypto-currencies.

The Comparison 

One of the main advantages of projects created on the basis of open source code, such as Bitcoin-networks, is that anyone can use the source code in order to add extra options that they require. The cost of each crypto currency is determined by the community of users of the system, that use this currency by mutual agreement.

Although at the present time, Bitcoin holds the highest market capitalization among all cryptocurrencies, this does not mean that there is no place for other crypto-currencies to sprout and co-exist with Bitcoin or be used for various special purposes of the community.

The developer of the Litecoin network – Charlie Lee – decided to improve the system of bitcoins. His main task was to reduce the time taken to confirm a new transaction, as well as to change the algorithm for bitcoin mining so that all participants in the system could partake in the mining process.