CREATION AND HISTORY
Litecoin is a peer-to-peer digital token (cryptocurrency) released in 2011. It was released as an open source software under MIT license; it underlines the guidelines of an open source program which gives the user flexibility of use and prohibits centralisation. Litecoin was released three years after the advent of Bitcoin(BTC), it was perceived as a solution to the potent scalability issue that BTC might have faced with increased adoption and it did. It was the first altcoin in the market.
ABOUT THE BLOCKCHAIN and ITS FOUNDERS
The average block-time is 2.5 minutes against BTC’s 10 minutes. Charlie Lee, one of the first developers and advocates of Bitcoin ex-Director of Coinbase, whose Twitter handle is @SatohiLite is the founder and Managing Director of the Litecoin Foundation. Despite his position in the $LTC community he continues to advocate $BTC and believes that both will be adopted eventually. Litecoin with its segregated witness and Lightning Network adoption serves as a beta to the Bitcoin (BTC) network. It provides a better niche for the miners as it is more ASIC resistant than Bitcoin and has a more abundant supply. Moreover, it uses a script algorithm which is ‘memory hard’ over Bitcoin’s ‘processing power’ which is cheaper than memory. Hence, centralised mining hubs are more expensive to set up in comparison to Bitcoin, enhancing decentralisation and providing security to small-scale miners.
Charlie Lee ascertained in his recent tweets that Bitcoin with Lightning Network is the real ‘Satoshi Vision’ of a peer-to-peer network, highlighting the fact that miners are currently the intermediate party between the peers. The lightning network would essentially eliminate the supervision of miners for ‘every single’ transaction taking place on the network. A network of trusted entities would establish a web sort of structure, and the final balances of each channel would be hence recorded on the main-chain. This would essentially develop a new layer of blockchain or side chains working independently between trusted parties instead of waiting to be recorded on the main chain. This will promote almost real-time transaction for zero transaction fees.
MARKET STATISTICS AND FUTURE PROSPECTS
Litecoin’s total supply is 84 million four times that of Bitcoin, and so is the Block speed. Litecoin (LTC) has been in the market of more than 65 months, and its total market cap is 3.5 billion dollars. The supply is also an adequate number greater than Bitcoin’s 21 million, which will make it feasible as a day-to-day medium of exchange. The price of LTC at the time of writing is 49.8 Euros (43.7 Pounds), it is down 83% from the all-time-high (ATH) price it reached during the cryptocurrency bull run in December 2017. Litecoin is currently the seventh largest cryptocurrency on total market capitalisation. Litecoin was the second most popular cryptocurrency and is always inducted in Bitcoin ATMs and is almost acceptable in all Bitcoin-friendly places and organisations. It was envisioned as the Silver to Bitcoin’s Gold and rightly so being used for transactions where one prefers Litecoin over Bitcoin because of reduced transaction time and fees.
The adoption and widespread use of the Lightning Network (LN) in both Bitcoin (BTC) and Litecoin (LTC) will pave the way for these two pioneering cryptocurrencies to be used as an effective global payment system. Furthermore, cold storage of these crypto-currencies on Hardware and Paper wallets being one of the oldest and most trusted cryptocurrencies intrinsically inhibit the properties of gold serving as a commodity for reserve and holding value. It has been used as a medium of global remittance by many renowned organisations and has the potential to help as fiat for economically unstable countries like Zimbabwe and Venezuela.