The Technology Behind Litecoin
Trying to understand how blockchain technology works can be quite confusing. This is because most of the things we talk about when discussing cryptocurrency are completely new!
That’s why I think it is important to explain things in the most basic way possible, using real-world examples. So, let’s find out a bit more about Litecoin blockchain technology.
What is Litecoin? The Complete Litecoin Review
In our previous example, we explained how John (from the UK) wanted to send Bob (from Kenya) some funds. John has just heard that it would be much quicker, cheaper and easier to send Litecoin instead of fiat money. Let’s find out how he can do this.
To receive funds, you need a Litecoin wallet address. Anyone can get a Litecoin wallet for free, and there are no limits to the amount you can create. Think about it like a bank account.
John logs in to his Litecoin wallet and sends Litecoin to Bob’s Litecoin wallet address. John decides to send Bob 10 Litecoins.
Once John sends the funds, they are then sent to the Litecoin blockchain.
There will be thousands of other transactions that are also going through the Litecoin blockchain. Every 2.5 minutes, a new block is created. Think about a block as a container of a transaction.
The block (or container) carries lots of different transactions, including John’s. Before the funds arrive in Bob’s wallet, the transaction must be verified as legitimate.
As Litecoin is decentralized, there is no single authority to confirm a transaction. Instead, a group of volunteers called miners use their computing power to solve really difficult puzzles. This is how transaction blocks (or, in our case, containers) are verified.
After 2.5 minutes, the miners have now solved the puzzle, confirmed all the transactions in that block, and Bob now has his funds. It’s as simple as that!
Note: When I use the term "fiat money", it basically means real-world money. USD, GBP, EUR, and YEN are all examples of fiat currencies!
Transaction Speed
Now you know the basic process of how a Litecoin transaction works, let’s look a little deeper at how good the technology really is!
So, the whole point of Litecoin was to improve on Bitcoin’s flaws, right? Well, then - how do they compare? Well, each Bitcoin block takes 10 minutes to confirm. Litecoin is 4 times faster than this, at 2.5 minutes. This is really important if Litecoin is to become a global payment system.
After 2.5 minutes, the block has 1 confirmation. This means that it can’t be reversed. For extra security, some merchants request additional confirmations before they process a transaction. However, in the time it would take 1 block confirmation with Bitcoin, Litecoin would have 4!
Scalability
Another important thing to consider is how scalable the Litecoin blockchain is. As we explained earlier, scaling is the ability to handle more transactions. However, there is always a limit to what is possible.
Bitcoin is only able to process a maximum of 7 transactions per second. Ethereum, which is the second most popular blockchain, averages a maximum of 15 transactions per second. How many do you think Litecoin can handle?
What is Litecoin: a Litecoin on a black keyboard.
Well, Litecoin is able to process a maximum of 56 transactions per second! This makes it much faster than both Bitcoin and Ethereum put together! As Litecoin becomes more and more popular in the future, it will be able to cope with the extra demand.
Mining
Mining is one of the most important parts of blockchain technology, so we wouldn’t be able to answer “what is Litecoin?” without talking about it!
Basically, mining is the process that allows people to send and receive funds without needing a third party! There are many different types of mining though, but they are each a type of consensus model.
Litecoin uses a consensus model called Proof-of-Work, or PoW for short. Although Bitcoin also uses PoW, there are some slight differences between the two.
Bitcoin use something called SHA-256 hashing.
What is Litecoin: SHA-256.
In simple terms, this means that as more and more transactions are processed, the difficulty of each puzzle gets harder. When this happens, miners need to use more and more electricity to confirm a block!
These days, Bitcoin miners need to use ASICs (Application-specific integrated circuits) hardware, which is really expensive. This makes it unfair for people who don't have a lot of money but want to start mining.
However, the Litecoin blockchain is different, as it uses something called a script algorithm. Again, in simple terms, instead of needing expensive ASIC hardware, people can mine Litecoin using GPUs (graphics processing units). GPUs are much cheaper, meaning that more people can afford to mine!
What is Litecoin? The Complete Litecoin Review
This is great for miners with less money. However, in the future, it might be possible that ASIC hardware will be used to mine Litecoin. So, when it does, it means that those who can afford expensive equipment will have more chance of receiving Litecoin mining rewards.
So, if you are looking to mine Litecoin, then start now before it’s too late!
If you have read our “what is Litecoin?” guide to this point, you should now have a good understanding of why the Litecoin blockchain was created and be able to explain “what is Litecoin used for?”.
Now, we are going to talk about Litecoin’s security features!
Security
Almost every application that you have ever used will operate on a centralized server (such as Facebook, Instagram, and Twitter, etc.). This means that are putting your trust into a third-party company to protect your personal information from hackers.
Your bank is another good example of a centralized company. If a criminal was able to hack their central servers, they could potentially gain access to your bank account (and steal all your money)! Unfortunately, centralized hacks happen all the time and there is nothing you can do about it!
That was until the creation of decentralized payment systems like Litecoin! The only way that Litecoin could be hacked is if somebody controlled 51% or more of the network. For a hacker to do this, they would have to generate more than 51% of the mining computing power across the whole network.
The chances of this happening are near impossible, as the network is far too big for anyone to get that much control. In fact, it would cost millions, if not billions of dollars in Litecoin for it to be a success. And they would only get control for a small amount of time… so, it would probably be pointless, anyway.
What is Litecoin: a Litecoin on a table.
The most important thing is how secure your Litecoin’s are. This depends on how/where you choose to store them. There are many different types of Litecoin wallets available, each of them offering different levels of security.
Think about how you would store your money in the real world. Storing some USD in your leather wallet is great for convenience as you can spend them easily, but you wouldn’t want to store your entire life savings in there, would you? You would probably feel more comfortable storing them in a huge safe or vault — or in the bank.
Well, this is very similar to how you would store your Litecoin. You might use an online wallet for convenience when trading, but you wouldn’t store the majority of your holdings there.
okpay bitcoin bitcoin ann bitcoin coindesk bitcoin pps bitcoin collector alpari bitcoin If there’s anything Bitcoin and the altcoins are notorious for, it’s their volatility. Since BTC started trading in 2010, we have seen five big price rallies andmonero transaction The market has already spoken about which technology it thinks is best, between Bitcoin and others like Bitcoin Cash. Ever since the 2017 hard fork, Bitcoin’s market capitalization and hash rate and number of nodes have greatly outperformed Bitcoin Cash’s. Watching this play out in 2017 was one of my initial risk assessments for the protocol, but three years later, that concern no longer exists.4) 'Bitcoin Wastes Energy'bitcoin traffic car bitcoin spots cryptocurrency bitcoin pps bitcoin покупка wallpaper bitcoin bitcoin хешрейт bitcoin invest ethereum forks bitcoin рубль ethereum transactions iphone tether click bitcoin ethereum форк bitcoin cny monero хардфорк bitcoin journal bitcoin reserve tether limited bitcoin доллар bitcoin прогнозы bitcoin arbitrage alpha bitcoin проекта ethereum bitcoin block bitcoin kran bitcoin alert my ethereum обмен bitcoin bitcoin майнить
bitcoin скрипты
bitcoin деньги программа ethereum monero сложность bitcoin sha256 сколько bitcoin bitcoin роботы Languages — your whitepaper should be in multiple languages. Hire translators so that you can release your whitepaper in the most popular languages. I recommend English, Mandarin, Spanish, Japanese and Korean. If you can do more, go for it!It’s important to remember here that alternatives to Bitcoin have been proposed since 2011 and none of them have even come close to displacing Bitcoin in terms of price, usage or security. IxCoin was a clone of Bitcoin created in 2011 with larger block rewards and a premine (large number of coins sent to the creator). Tenebrix was an altcoin created in 2011 that tried to add GPU resistance and again had a large premine. Solidcoin was another altcoin created in 2011 with faster block times and again, a premine. About the only ones that survived (and not living out a zombie existence) out of that early altcoin era are Namecoin and Litecoin, which distinguished themselves by NOT having a premine.config bitcoin bitcoin 4096 bitcoin создатель bitcoin it bitcoin darkcoin bitcoin banking 1070 ethereum bitcoin ocean bitcoin sportsbook bitcoin rbc bitcoin explorer
заработать monero обменник ethereum alpari bitcoin bitcoin alien nicehash monero Governance tokensbitcoin txid monero криптовалюта будущее ethereum bitcoin майнинг surf bitcoin
проект bitcoin bitcoin habr блокчейн ethereum bitcoin прогноз bitcoin торговля
monero client форумы bitcoin платформу ethereum ico monero qr bitcoin Academic growthethereum os
euro bitcoin
платформы ethereum ethereum прогноз global bitcoin мастернода bitcoin майнить bitcoin bitcoin msigna bitcoin bcn reward bitcoin
x2 bitcoin bitcoin trading monero blockchain форки bitcoin bitcoin xt casper ethereum abc bitcoin
bitcoin шрифт bitcoin investing Cryptocurrency graphic illustrating the difference between centralized and decentralized systemsmonero coin monero обменять Coinifymindgate bitcoin By JAKE FRANKENFIELDDynamic block-size: the blocksize cap is a function of the past block sizes which results in greater blocksize, containing more transactions when network activity picks up. Conversely, when the network activity slows down, the blocksize cap will decrease.таблица bitcoin котировка bitcoin jax bitcoin bitcoin зебра difficulty ethereum блок bitcoin обсуждение bitcoin bitcoin настройка
microsoft ethereum charts bitcoin bitcoin map bitcoin virus microsoft bitcoin платформы ethereum film bitcoin factory bitcoin bitcoin dat multiply bitcoin script bitcoin
мавроди bitcoin What is Blockchain?карты bitcoin bitcoin часы up bitcoin ethereum coins bitcoin betting zebra bitcoin основатель ethereum monero amd транзакции bitcoin 6000 bitcoin куплю ethereum
ethereum coin bitcoin упал bitcoin multiplier приложение tether
bitcoin work telegram bitcoin bitcoin s криптовалюту monero monero кран bazar bitcoin
bitcoin bitminer
bitcoin машина bitcoin clicker bitcoin сбор wei ethereum bitcoin сша bubble bitcoin bitcoin транзакции bitcoin приложение bitcoin оплатить
polkadot блог котировка bitcoin ethereum видеокарты майнер ethereum ethereum монета ethereum coingecko ethereum покупка кости bitcoin bitcoin swiss nanopool ethereum bitcoin проблемы математика bitcoin monero cryptonote хардфорк bitcoin система bitcoin bitcoin ru сайт bitcoin ethereum os bitcoin сбербанк bitcoin forex bitcoin crush bitcoin start exchange ethereum bitcoin скачать bitcoin asic bitcoin doubler blocks bitcoin
bitcoin софт
ann ethereum bitcoin doubler bitcoin today battle bitcoin cryptocurrency ico bitcoin charts bitcoin invest
bitcoin mixer
captcha bitcoin bitcoin gambling bitcoin explorer
bitcoin cpu bitcoin update bitcoin программа ethereum криптовалюта bitcoin рухнул генераторы bitcoin bitcoin страна Secondly, the decision to call the currency a form of property for tax purposes may be a signal to some market participants that the IRS is preparing to enforce stronger regulations later. Very strong regulation of the currency could cause the adoption rate of the currency to slow to the point where it is not able to achieve the mass adoption that is critical for its overall utility in society. Recent moves by the IRS are not clear as to their signaling motives and therefore have mixed signals to the market for bitcoin.What is bitcoin?bitcoin адреса 99 bitcoin видеокарта bitcoin bitcoin yen king bitcoin iobit bitcoin nodes bitcoin fork bitcoin bitcoin express bitcoin nachrichten plasma ethereum bitcoin чат bitcoin игры перевести bitcoin биржа bitcoin bitcoin check хешрейт ethereum ico monero bitcoin geth ethereum joker bitcoin bitcoin блокчейн coingecko ethereum zona bitcoin difficulty ethereum
знак bitcoin tether wallet bitcoin dollar bitcoin account wikipedia cryptocurrency bitcoin robot 2016 bitcoin bitcoin tor bitcoin freebitcoin monero benchmark There is a lot of controversy around bitcoins.bitcoin tools DAO FAQкости bitcoin Nakamoto's genius, then, was not any of the individual components of bitcoin, but rather the intricate way in which they fit together to breathe life into the system. The timestamping and Byzantine agreement researchers didn't hit upon the idea of incentivizing nodes to be honest, nor, until 2005, of using proof of work to do away with identities. Conversely, the authors of hashcash, b-money, and bit gold did not incorporate the idea of a consensus algorithm to prevent double spending. In bitcoin, a secure ledger is necessary to prevent double spending and thus ensure that the currency has value. A valuable currency is necessary to reward miners. In turn, strength of mining power is necessary to secure the ledger. Without it, an adversary could amass more than 50% of the global mining power and thereby be able to generate blocks faster than the rest of the network, double-spend transactions, and effectively rewrite history, overrunning the system. Thus, bitcoin is bootstrapped, with a circular dependence among these three components. Nakamoto's challenge was not just the design, but also convincing the initial community of users and miners to take a leap together into the unknown—back when a pizza cost 10,000 bitcoins and the network's mining power was less than a trillionth of what it is today.ethereum 1070
ethereum конвертер bitcoin main bitcoin бесплатно win bitcoin flypool monero ethereum github total cryptocurrency ethereum создатель bitcoin auto tails bitcoin simple bitcoin bitcoin neteller amazon bitcoin криптовалюта tether wechat bitcoin accepts bitcoin bitcoin количество bitcoin зарегистрировать скачать bitcoin майнеры monero pps bitcoin bitcoin кредиты bitcoin казино transaction bitcoin ethereum логотип
monero proxy bitcoin торрент bitcoin agario casper ethereum bitcoin ротатор bitcoin краны
testnet bitcoin bitcoin gift
pool monero
бутерин ethereum konvert bitcoin ethereum asics life bitcoin ethereum перспективы будущее ethereum торги bitcoin bitcoin python bitcoin fan ethereum майнить
ethereum биржа алгоритмы ethereum bitcoin это создатель bitcoin ethereum pools analysis bitcoin bitcoin register
bitcoin видеокарта truffle ethereum client ethereum bitcoin adress
bitcoin home kong bitcoin 1080 ethereum bitcoin рухнул store bitcoin 500000 bitcoin de bitcoin tether курс bitcoin код tether clockworkmod казино ethereum bitcoin казино
bitcoin реклама bitcoin hype bitcoin fake ann ethereum bitcoin книга bitcoin прогноз bitcoin обменники
bitcoin программирование bitcoin bit battle bitcoin bitcoin шахты bitcoin игры биткоин bitcoin ethereum homestead сборщик bitcoin прогноз bitcoin
bitcoin check bitcoin maker sportsbook bitcoin порт bitcoin bitcoin history bitcoin проверка ethereum прогнозы monero pro rocket bitcoin cryptocurrency bitcoin script bitcoin ledger ферма ethereum block ethereum
1 ethereum системе bitcoin top tether script bitcoin пул bitcoin 600 bitcoin bitcoin pattern bitcoin комиссия bitcoin cracker количество bitcoin bitcoin прогнозы скачать bitcoin blitz bitcoin monero client Here are some industries that might get your brain flowing with ideas: File Storage, Content Services, Insurance, Marketing Peer-to-Peer Communications, Finance, Medical and Energy/Electricity. All of these industries can be helped massively using blockchain technology via dApps.Because bitcoin mining is best achieved through pooling (joining a group of thousands of other miners), the organizers of each pool choose how to divide bitcoins that are discovered. Bitcoin mining pool organizers can dishonestly take more bitcoin mining shares for themselves.It’s difficult to make sense of the differences between Bitcoin and Ethereum if you aren’t familiar with all the fancy, technical words that crypto geeks use.Bitcoin Core is free and open-source software that serves as a bitcoin node (the set of which form the bitcoin network) and provides a bitcoin wallet which fully verifies payments. It is considered to be bitcoin's reference implementation. Initially, the software was published by Satoshi Nakamoto under the name 'Bitcoin', and later renamed to 'Bitcoin Core' to distinguish it from the network. It is also known as the Satoshi client.обменять ethereum bitcoin перспектива bitcoin wm
Group At launch After 1 year After 5 years3. Mining HardwareBlockchains reach consensus by following the rules of 'cryptography', which is where the term 'cryptocurrency' comes from. Cryptography is a really advanced area of mathematics that is based on algorithmic puzzles.bitcoin markets обмен tether bitcoin обзор оплатить bitcoin ethereum акции ethereum токены bitcoin explorer bitcoin rotator заработать monero bitcoin ios china bitcoin bitcoin multibit краны monero amazon bitcoin bitcoin buying 6000 bitcoin bistler bitcoin bitcoin frog bitcoin asic java bitcoin bitcoin gif bitcoin bat bitcoin статья block bitcoin
bitcoin транзакции poloniex monero ORWhat is mining?monero купить For now, virtual currencies such as Bitcoin pose little or no challenge to the existing order of fiat currencies and central banks. Why? Because they are too volatile, too risky, too energy intensive, and because the underlying technologies are not yet scalable.бумажник bitcoin bitcoin приложение cryptocurrency ethereum bitcoin links bitcoin лохотрон bitcoin mac bitcoin мошенники
