What is Litecoin and how does it work?
Litecoin is a peer-to-peer cryptocurrency which is founded under MIT/X11 licences. Coins creation and transfer are based on an open source cryptographic protocol, and what is important, it is not managed by any kind of central authority. Technically, Litecoins is almost identical to Bitcoins, but with even better speed and lower fees. Litecoin has been often compared with Bitcoin, the functionality of which is nearly the same. At the same time, Litecoin costs of transactions are lower than those of Bitcoin. For many digital currency traders, users „transaction costs” play a big role. In BTC, LTC future prognoses “transaction costs” play for good to LTC.
On the one hand, the rise in price of Litecoins and Bitcoins is response to the demand for new, alternative currency, which separates itself from centralized banks & governments. On the other hand, the price is influenced by large traders, investor demand: buying, selling strategies.
Advantages & Benefits
Litecoins can be used anywhere, at any time and by anyone. The Litecoins usage fees are lower than those offered by credit card and bank companies. LTC transfers are fast, cheap and worldwide.
At the moment, there are over 57 million Litecoins. The final amount of Litecoins estimated by Charlie Lee is 84 million of coins. The final number of Litecoins (84 million) was based on the number of 21 million Bitcoins (final limit of BTC) with the aim – to make Litecoin four times faster than Bitcoin. The fixed amount of coins serves as a stability guarantor for the Litecoin value in long term. At the same time, cryptocurrency development and price are strongly connected with government’s actions, rules, regulations.
History & Creator
Litecoin was created in October 2011, by the former employee of Google — Charlie Lee. The aim of creating Litecoin was based on the unsolved Bitcoin issues, like, how to improve transaction speed and, at the same time, how to make lower currency usage fees, as well as how to resolve problems related to Bitcoin mining pools. In the opinion of Charlie Lee LTC was the answer on these questions.