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Litecoin (LTC)

Maxbit Support
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What is Litecoin (LTC)?

Litecoin (LTC).png

  1. Native Blockchain:
    • Litecoin operates on its own native blockchain, which was initially a fork of the Bitcoin blockchain. This means that Litecoin's foundation is based on Bitcoin's code but with modifications.
  2. Consensus Protocol:
    • Litecoin utilizes the Proof-of-Work (PoW) consensus mechanism, much like Bitcoin. However, it differs in its use of the Scrypt hashing algorithm, as opposed to Bitcoin's SHA-256.
  3. Trilemma (Security, Speed, Scalability):
    • Security: As a PoW-based cryptocurrency, Litecoin's security is maintained by miners who commit computational resources.
    • Speed: One of Litecoin's key features is its faster block generation time (approximately 2.5 minutes) compared to Bitcoin's 10 minutes, facilitating quicker transaction confirmations.
    • Scalability: While Litecoin offers faster transactions, scalability challenges exist, similar to other PoW cryptocurrencies. However, solutions like the Lightning Network and Segregated Witness (SegWit) have been proposed and/or adopted to address these issues.
  4. Founder / Date Founded:
    • Litecoin was created by Charlie Lee, a former Google engineer, and was launched on October 13, 2011.
  5. Objective / Use Case:
    • Litecoin was conceived as the "silver to Bitcoin's gold." Its aim was to offer a more lightweight and faster cryptocurrency for daily transactions, with improvements over Bitcoin in terms of speed and cost.
  6. Total supply/ Limit or Unlimited:
    • Litecoin has a maximum supply limit of 84 million coins, which is four times the maximum supply of Bitcoin.
  7. Supply Deflation:
    • Litecoin follows a deflationary model similar to Bitcoin. Mining rewards halve approximately every four years in an event known as the "halving." This ensures that the rate of new LTC entering the market decreases over time until the max supply is reached.

          This summary should grant beginners a foundational grasp of Litecoin and its characteristics. As the cryptocurrency realm is continually evolving, it's always a good idea to keep up with the latest updates and shifts in the industry.

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