The blockchain technology is one thing that is pushing up the values of virtual currencies. The blockchain is like an infrastructure upon which the virtual coins are built. It is the distributed, decentralized, and digital ledger that keeps the record of all transaction. Every time an exchange happens in the network, it gets logged in a block. Each of the blocks forms a chain known as the blockchain. These records are kept without the need for a third party interference. The use of blockchain leads to security of networks as a result of which the transactions are settled cheap and fast.
The Things To Know About Litecoin
Litecoin was introduced to the world in 2013 by Charles Lee who is a former Google Engineer. He explained it as a kind of silver to the gold of bitcoin. He marketed it as being the currency that will solve the problems associated with bitcoins for so long. Litecoin was made to impart a peer to peer transaction facility. It lets you have transactions or make payments anywhere across the globe at a low fee.
The currency is free flowing on the internet, and there is no centralized authority, headquarters, or buildings for litecoin. The value of litecoin remains with the people as there is no authority to overproduce or regulate the currency. The production of litecoins takes place through mining just as it does in case of all digital currencies. Litecoin stays protected from hyperinflation due to its finite capping and mining process.
The Reasons For Litecoin’s Popularity
Litecoin did not have a fast ascent like the other digital currencies. In fact, it was slow in its growth. But the supporters of digital currencies did not ditch it because of its algorithm. The hardware required for litecoin is more widely available as compared to bitcoin.
Litecoin uses scrypt algorithm against SHA-256 hashing algorithm of bitcoins. The scrypt has a bigger working memory which makes it a viable alternative to the other digital currencies. It also significantly affects the ltc price. Litecoin can even get mined on GPU or the graphics cards. In fact, that is how it got mined at the beginning, and it felt really convenient for the miners. The sophisticated and advanced technologies in mining were a later day phenomenon. Mining of litecoins was still easy when you compare it with other coins.
Volatility is the order of the day when it comes to digital currencies, and that is one thing you will have to keep in mind when you are down to investing. However, the gains are big if you take the right steps which makes the currencies lucrative.