Blockchains 101: Litecoin

Introduction

Litecoin (Ticker: LTC) has been developed in 2011 by Charlie Lee, a former Google employee with the intention to create a lighter version of Bitcoin. It is based on the Bitcoin protocol and also validate transactions through the process of mining (PoW).

Litecoin Artwork

Description

Litecoin is an early spinoff (Fork) of Bitcoin, modified and upgraded to include some technical improvements such as a lower blocktime (transaction time) of 2.5 minutes (against 10min for Bitcoin), making it theoretically faster than BTC, a lighter GUI, higher hard cap (x4 total supply) and the scrypt cryptographic function which requires more memory than Bitcoin’s SHA-256.

Privacy:

Litecoin is in the process of integrating Mimblewimble, a privacy-focused protocol aiming to improve blockchain privacy, scalability, and fungibility by combining transactions in a CoinJoin but also by obscuring transactions to any third party monitoring the network.

Mining:

The Proof of Work consensus algorithm of Litecoin is very similar to the one of Bitcoin.

The Litecoin core client (software wallet)

Storage and wallets:

There a plenty of way to store Litecoin. The safest being to store it in a cold wallet (offline wallets such as paper wallet or hardware wallets) or hot wallet (such as mobile or desktop wallets) or by using a custody service that will store it on their own cold wallet/vault (thus limits the benefit of decentralization by involving a third party).

Technical specificities:

  • Type: Native Coin
  • Total Supply: 84,000,000
  • Subunit: 10–9 (Litoshi)
  • Consensus: Proof of Work (PoW)
  • Encryption algorithm: Script
  • Privacy: Pseudonymous (Low)
  • Smart contracts: no
  • Blocktime: 2.5 minutes
  • Coding languages: C++ / Go (Java, Python)
  • Open source: Yes
  • Current version: 0.17.1
  • Previous versions: 0.17.0

Documentation:

TradingBull.io

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