Want to learn everything about Litecoin in simple words?
Here's a big fundamental research about $LTC :
Plan for today:
Main idea
Team
Was there any funding and ICO?
Figures and tokenomics
How does Litecoin work?
The difference between Scrypt and SHA-256 hash function
TA
Let's dive in:
~ Main idea ~
Litecoin was created to speed up transactions compared to Bitcoin.
Essentially, it has the same working principle but differs in transaction costs and network processing speeds.
In other words, it's like the L2 solution for Bitcoin but not really.
~ Team ~
Charlie Lee - Founder
Alan Austin - Managing Director
Xinxi Wang - Director
And other board and marketing members.
~ Was there any funding and ICO? ~
Charles Lee, the creator of Litecoin, launched it as open source without an ICO or fundraising.
He was focusing on creating a functional cryptocurrency with improved technical features.
This allowed Litecoin to develop based on voluntary contributions from the community and was the reason why traditional funding was not necessary.
Pure enthusiasm.
In addition, in 2011, cryptocurrencies did not hold ICOs in the way we see now.
~ Figures and tokenomics ~
Top-19 rank on CoinMarketCap
The price on 01/02/2024 is $66,5
Circulating supply: 74,155,594 $LTC
Total supply: 84,000,000 $LTC
Market cap: $4,92b
Judging by the infographics, you can immediately notice the declining transaction fees.
You will pay a mere penny for the transfer online, and your fee will be almost insignificant.
Regarding tokenomics, it can be highlighted a similar principle to Bitcoin:
Halving the mining reward every 4 years
The last LTC will be mined around the year 2140
There are 4 times more Litecoin tokens than the number of $BTC in total
Just a similar model.
The top 100 addresses own 37% of the total amount of tokens at the moment.
But it's not that bad, the top 1 address owns about 3% of all coins.
In general, the network is decentralized and kept by the community since it's open-source code.
In simple words, LTC is used to:
Fast and cheap transactions
Payment for goods and services
Reward for mining
Overall some advantages over the Bitcoin network.
~ How does Litecoin work ~
You could call Litecoin a lightweight version of Bitcoin but it uses the Scrypt algo.
Blocks on the Litecoin network are generated approximately every 2.5 minutes vs 10 minutes in Bitcoin.
It allows faster transaction processing and payment confirmation.
~ The difference between Scrypt and SHA-256 hash function ~
The hash function is used to generate unique hashes for blocks of data, providing security and integrity of information.
Bitcoin uses SHA-256 (Secure Hash Algorithm 256-bit) hashing algorithm.
SHA-256 is a pretty standard cryptographic method, highly secure, and is used to secure blocks on the Bitcoin network.
Scrypt is less prone to mining using specialized ASIC (Application-Specific Integrated Circuit) devices compared to SHA-256.
In simple words, it makes Litecoin mining available for regular computers with graphics processing units (GPUs) and central processing units (CPUs).
This was done to increase the decentralization of mining and make it more accessible to a wider audience.
~ TA ~
I have been analyzing LTC globally recently and my outlook remains the same:
In both scenarios, I expect the price upside to the resistance lines.
Risk/profit is 1:4 or 1:7 depending on the strategy.
Anyway, this is just my opinion and long-term vision on this chart.
That was my seventh episode.
It's my mission to provide specific info on Web3 projects to expand this space.
I'm doing it because, at the beginning of my journey, I would have been happy to find all the info in one place.
In this work, I tried to close the maximum questions that may have arisen when getting acquainted with Litecoin.
