Litecoin Explained: What It Is and How It Works
The birth of Bitcoin (BTC) in 2009 didn’t just provide the market with convenience and solutions. Instead, it was a strong indication of what the future of the global economy would be. At the outset, it was deemed as a fad by different industries due to fallacies and licensing issues. Only that, the crypto market proved them wrong with the subsequent rise of altcoins.
Altcoins is short for ‘alternative cryptocurrencies’, referring to the digital currencies apart from Bitcoin. While most claim themselves as better replacements, there is one that complements Bitcoin’s main service as a store of value: Litecoin (LTC). Even better, it is the digital silver to Bitcoin as digital gold.
Created in 2011 by computer scientist Charlie Lee, Litecoin is a global peer-to-peer (P2P) digital currency and open-source software project that permits instant, near-zero cost payments for everyone. Like its concurrent digital assets, it is fully decentralised without needing any third parties or central authorities.
Given its well-established mathematics — created from Bitcoin’s source code copy (project fork) — it empowers people to be their bank and control their own financial transactions. It is openly distributed, technically secured, impressively fast and efficient. Now, the use of Litecoin almost covers the gamut of the world’s different industries. Among the many that tapped to utilise its potential is crypto-based casinos, with the most notable one being Luckyslots.
The rise of Litecoin
Charlie Lee, a former Google employee and now the managing director of the Litecoin Foundation, released Litecoin through an open-source client on GitHub. In an effort to improve Bitcoin’s high fees and slower rate transactions, its network finally went live on October 13, 2011.
With these benefits, the term ‘Litecoin’ came into the picture. According to Lee, the term was derived from Bitcoin except it was made to be lighter. True enough, its new blocks on the network are produced every 2.5 minutes. This innovation makes it four times faster than Bitcoin’s mining of blocks at about ten minutes.
The lowered production of blocks alone is one of the major reasons why Litecoin complement’s Bitcoin’s main services. The former is a faster solution and preferred medium of exchange for sending crypto to and from. In turn, it allows users to focus more on Bitcoin’s more natural use as a store of value.
Is it a good investment?
Any day is a great time to use Litecoin, even if the mere purpose is to play at leading crypto-based sites like Luckyslots. On that note, this leads us to digital asset’s other potential services.
Since Lee mainly created Litecoin as a faster and better method of transaction for everyone in the world, could that mean it is not a good choice of investment? Well, like the other leading digital assets today, there are pros and cons when investing in Litecoin.
Litecoin continuously performs at a good rate every year. Since 2011, one of its remarkable years is 2019. Its supply came with a resounding increase of 500%. While it still follows after Bitcoin and Ethereum (ETH), that doesn’t instantly mean that it’s a bad idea to consider investing in Litecoin.