It was one of the first alternative cryptocurrencies to be released after the advent of Bitcoin and cryptocurrencies in general. Since its inception in 2011, it has quickly risen to become one of the top ten most valuable cryptocurrencies on the worldwide market. The cryptocurrency is somewhat comparable to Bitcoin in several respects. On the other hand, it has been altered to compensate for the restrictions imposed by Bitcoin blockchain technology imposed. Tenebrix and Fairbrix were two of the early cryptocurrency initiatives built on the Bitcoin source code, and their developers served as a source of inspiration for the creators of the cryptocurrency. Even though Tenebrix’s mining algorithm was based on the scrypt function.
If you have an interest in cryptocurrencies or are just curious about the benefits and drawbacks of this research, the following article will provide you with information on the benefits and drawbacks of Litecoin in addition to other data.
About the Cryptocurrency
Even though it shares certain similarities with Bitcoin, it is smaller and more efficient. A block is processed on the blockchain platform that Bitcoin uses every 9 minutes. The Litecoin blockchain platform aims to process a block every 2.5 minutes. On some systems, the transaction speed will slow down when there is a high volume of transactions. This cryptocurrency is suitable for use in daily transactions that involve only a small amount of money as well as purchases of a similar size. When a payment is made using this cryptocurrency, the merchant does not have to wait as long for the confirmation as they would with Bitcoin.
Advantages of the Cryptocurrency
Because it does not need the employment of GPUs or processing units that have been specifically designed, the scrypt function enables a bigger number of people to participate in blockchain mining and utilize the network. It is easier to access for those who mine on its blockchain network and for those who utilize it. Moreover, there is no requirement to purchase pricey hardware components. Because it is mostly for cryptocurrencies, it helps to reduce both excessive traffic and bottlenecks. It has a lower transaction fee compared to Bitcoin, Ether, and the cryptocurrencies that use the Ada protocol. Because of its speed, it is less vulnerable to assaults that involve spending twice as much. There will never be more than 84 million Litecoin available in total. It is an excellent tool for protecting oneself against inflation.
Disadvantages of the Cryptocurrency
It can encounter offshoots since the platform is easily accessible through the use of its scrypt function in blockchain mining. Due to the complexity and high cost of the scrypt algorithm, it is difficult and expensive to design and deploy FPGA and ASIC devices for its mining. It is not a very well-known digital money. It is impossible to compare it to larger cryptocurrencies like Bitcoin, the Ether crypto-coin, or the Ada crypto-coin, even though it is one of the top 10 cryptocurrencies. People do not generally accept cryptocurrency as they do the three cryptocurrencies that are now the most valuable. It is not included in the lists of currencies that may be traded on the several platforms that deal in currencies and cryptocurrencies.
