Digital assets market has grown so much that Bitcoin is far from being the only cryptocurrency working nowadays. Even though it is the first one and supports the whole market by being the reference exchange price, cryptocurrencies have diversified as the open-source has been modified and recreated by other users. Litecoin is one of the results of this system and works as a Bitcoin complement
How does Litecoin work?
Litecoin is a totally anonymous cryptocurrency that works with a P2P system which guarantees the direct transaction between the 2 parties without the need of any other intermediary. In this system, both parties are always unseen and it’s only by the “e-wallet” that the transactions are made. That’s one of the most important features of this system:cryptocurrencies are only yours and no one has control over your data.
The bad news is that if you lose your e-wallet or get hacked, there’s no support, you lose everything. But, to be fair, those cases don’t happen very often and if you make sure to be cautious with your transactions, Litecoin is actually quite safe.
Advantages of Litecoin
Even when Litecoin is a complement of Bitcoin, this cryptocurrency has some advantages that have made it grow in the digital assets marketing to the point that it is one of the most used digital money of the world. Some of the advantages Litecoin represents for users come from the fact that it has “corrected” some of the unconformities that Bitcoin represented for users, in a few words: Litecoin is more modern and friendly since it has the following advances:
- Chainblock: Litecoinchainblock has a quite bigger capacity than Bitcoin’s, being able to generate more frequently it is possible to achieve more transactions in less time without software actualization what becomes more “effective trades”.
- Great mining: as we know, all cryptocurrencies are designed to have a limited production of the currency. Being Bitcoin the first cryptocurrency, the production rate is limited and with Litecoin, miners can get as much as 4 times the production they would be able to accomplish in Bitcoin. This opens many possibilities.
- User Friendly: as said in the first bullet point, Litecoin chainblock is faster than Bitcoin’s and it not only affects the number of transactions but also the time users take to confirm this. It may seem like the same but we’re talking not only about profits but also about comfort. Maybe a person that is entirely dedicated to cryptocurrency trade doesn’t care too much about how much time they spend in front of the pc, but a casual trader might appreciate quite much the difference between the 10 minutes it takes on Bitcoin to implement a transaction and the 2.5 minutes it takes in Litecoin. Draw your conclusions.
In the end, Litecoins is still a complement for Bitcoin and works according to that reference but as unstable as this kind of system is, Litecoin or any other cryptocurrency could be the reference in the future since better projects can still be created out of the original Bitcoin open-source or even taking Litecoin as the source.