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In a complete Litecoin explanation, of course, the past must not be ignored. In addition a few technical basics have to be explained. Litecoin has not only been known since 2017, but since 2011.
The founder of the currency is Charlie Lee. The crypto currency is based on an open source client and the developer has published Litecoin on the web-based online service GitHub for the first time. The digital motto Litecoin is based on the same technology as Bitcoin, because a peer-to-peer network is also used.
Charlie Lee celebrated his first success in 2013, when The Economist publicly wrote about the crypto currency for the first time. Litecoin was already seen as a competitor to the digital currency Bitcoin. After its first public appearance, the currency experienced an enormous growth. Within a single day, Litecoin has made a leap of around 100 percent and has achieved a market capitalization of almost 1 billion US dollars.
Conclusion: Litecoin appeared for the first time in 2011. Basically Litecoin is based on the same technology as Bitcoin. In 2013 Litecoin was named Bitcoin for the first time as an alternative to the crypto currency.
Litecoin functionality - how was the currency developed?
The development of the crypto currency did not stop in 2013. Litecoin is being continuously developed so that the gap to Bitcoin can be closed further. The first new variant was introduced at the end of 2013. It was a new version that did not change any basic Litecoin functions. However, the security of the network was worked on a lot.
Only one month later another Litecoin version came on the market. With this update the transaction costs could be reduced significantly. In addition, performance and security were once again worked on. The next version was released in April 2014. With this update, once again everything revolved around the topic of security.
In the past three years there have been several new versions of the crypto currency. The latest version was released in August this year.
Conclusion: As you can see from the individual updates, the crypto currency has been continuously developed over the last few years. The main focus has been on increasing security and reducing transaction costs.
What are the differences to Bitcoin?
The Litecoin functionality is relatively similar to that of the Bitcoin, but there are some technical differences. In total, there are three differences that stand out. These are briefly explained:
The Litecoin blocks can be solved much faster than the Bitcoin blocks. In total, they are even four times faster, because creating a Bitcoin block takes ten minutes. Accordingly, a Litecoin block can be produced within two and a half minutes.
Since the Litecoin blocks can be produced four times as fast as the Bitcoin blocks, the number of Litecoin blocks converges to 84 billion.
In addition, both crypto currencies use different algorithms. Litecoin uses scrypt, while Bitcoin uses SHA256. Litecoin uses a different algorithm to avoid centralization, as is the case with Bitcoin. If you want to create Litecoin blocks, you need very expensive graphics processors.
Conclusion
Litecoin and Bitcoin are very similar, but there are three big technical differences. Litecoin blocks can be solved much faster and a different algorithm prevents centralization from taking place.