Cryptocurrency: A Beginner's Guide To Understanding And Winning With Fintech (Bitcoin, Blockchain, Trading, Investing, Mining, Digital Money, Smart Contracts) by Eliot P. Reznor

Cryptocurrency: A Beginner's Guide To Understanding And Winning With Fintech (Bitcoin, Blockchain, Trading, Investing, Mining, Digital Money, Smart Contracts) by Eliot P. Reznor

Author:Eliot P. Reznor
Language: eng
Format: azw3
Publisher: EPR Publishing
Published: 2017-08-27T07:00:00+00:00


Litecoin (LTC)

Introduced in 2011, Litecoin is another type of cryptocurrency that is also based on the Bitcoin platform. This digital currency is created by Charlie Lee, a former engineer at Google and graduate of MIT.

Lee created this cryptocurrency as an open source payment platform that is also free from any interference or governance of a single authority. However, Litecoin is different from Bitcoin in areas such as using scrypt as a proof of work system and it offers faster block generation.

Litecoin was designed as a lower scale currency of Bitcoin. If Bitcoin is gold, then Litecoin is silver. It was created with the objective to improve the shortcomings of the Bitcoin network, and it has already gained support in various industries. Through the years, this digital currency has achieved liquidity and trade volume.

Litecoin production is faster than Bitcoin, specifically four times faster. In general, Litecoin is now one of the top cryptocurrencies in terms of value, but they are easier to obtain compared to most digital currencies.

Similar to other digital currencies, Litecoin also serves as an online cash system. Similar to a bank’s online network or PayPal, users could use the network to transfer one currency to another. But rather than US dollars, it performs the transactions in Litecoin units. This is where the similarity of Litecoin ends.

Likewise, Litecoin is also not issued by a government. Rather than being governed by a Federal Reserve and being printed by the government, Litecoins are produced through mining as well similar to Bitcoin mining. Litecoin supply is also fixed currently at 84 million. The Litecoin network creates a block every 2.5 minutes, which is faster compared to the 10 minutes for Bitcoin.

The Litecoin block also refers to the ledger record of recent Litecoin transactions. The block is also confirmed using mining software and made accessible to any user who likes to see the block. When the miner confirms the transaction, the next block will be added to the chain.

The first user to confirm the block will receive 50 Litecoins, which is valued around $ 100. The amount of Litecoins awarded for this task decreases over time. This decreasing rate will continue at regular intervals until all miners confirmed all the 84 million Litecoins.

Mining digital currencies at a rate that is profitable for you requires super processing power, which could be done only if you have specialized software and hardware.

To mine digital currencies, the computational power of your desktop PC is not fast enough for currency mining. This brings us to another benefit of mining Litecoin as it can be mined using regular PCs. You can also mine well if your tools are high-grade.

You should take note that any currency, even the strongest ones, is only worthy if the society deems it valuable. If the Federal Reserve begins circulating too many dollars, its value will decrease. Anything that becomes cheaply available becomes less valuable.

The developers of Litecoin are well aware of this from the very start and they understood that it can be difficult for a new digital currency to gain a reputation in the growing marketplace.



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