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Glossary

History of Litecoin


Litecoin was released via an open-source client on GitHub on October 7, 2011 by Charles Lee, a former Google employee.[5] It was a fork of the Bitcoin-Qt client, differing primarily by having a decreased block generation time, increased maximum number of coins, different hashing algorithm (scrypt, instead of SHA-256[6]), and a slightly modified GUI.


During the month of November 2013, the aggregate value of Litecoin experienced massive growth which included a 100% leap within 24 hours.


Litecoin reached a $1 billion marketcap in November 2013.[8] As of February 2016, its market capitalization is US$136,512,971 with the price at $3 levels.


Differences from bitcoin

Litecoin offers three key differences from Bitcoin.


   The Litecoin Network aims to process a block every 2.5 minutes, rather than Bitcoin's 10 minutes, which its developers claim allows for faster transaction confirmation. A drawback is a higher probability of orphaned blocks. Advantages can include greater resistance to a double spending attack over the same period as bitcoin. However, total work done is a consideration. For example, if the Litecoin Network has comparatively ten times less computing work done per block than the bitcoin network, the bitcoin confirmation is around ten times harder to reverse, even though the Litecoin Network is likely to add confirmation blocks at a rate four times faster.

   Litecoin uses scrypt in its proof-of-work algorithm, a sequential memory-hard function requiring asymptotically more memory than an algorithm which is not memory-hard.

   The Litecoin Network will produce 84 million Litecoins, or four times as many currency units as will be issued by the Bitcoin Network.


The original intended purpose of using Scrypt was to allow miners to mine both Bitcoin and Litecoin at the same time. The choice to use scrypt was also partially to avoid giving advantage to video card (GPU), FPGA and ASIC miners over CPU miners; although Charlie Lee has never publicly agreed with this opinion.


Due to Litecoin's use of the scrypt algorithm, FPGA and ASIC devices made for mining Litecoin are more complicated to create and more expensive to produce than they are for bitcoin, which uses SHA-256. This is widely due to the Scrypt hashing scheme being more memory intensive; increasing memory requirements for ASICs and FPGAs. However, as of December 2015, ASIC miners are widely available and the primary method of mining Litecoin.


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