What Is Litecoin, and How Does It Work?
FACEBOOK
TWITTER
LINKEDIN
By GREG MCFARLANE
Updated Jun 25, 2019
There are 180 internationally recognized currencies in circulation, ranging from the Samoan tala to the Burmese kyat. Just like with regular currency, there are multiple cryptocurrencies too. Because it was the first, bitcoin gets all the publicity, but it competes against dozens of aspiring alternatives – one of which is litecoin.
Measured by market capitalization (or the amount of currency on the market), litecoin is the third-largest cryptocurrency after bitcoin and XRP. Litecoin, like its contemporaries, functions in one sense as an online payment system. Like PayPal or a bank’s online network, users can use it to transfer currency to one another. But instead of using U.S. dollars, litecoin conducts transactions in units of litecoin. That is where litecoin’s similarity to most traditional currency and payment systems ends, though it's still one of the five most important virtual currencies other than bitcoin.
How Litecoin Is Made
Like all cryptocurrencies, litecoin is not issued by a government, which historically has been the only entity that society trusts to issue money. Instead, being regulated by a Federal Reserve and coming off a press at the Bureau of Engraving and Printing, litecoins are created by the elaborate procedure called mining, which consists of processing a list of litecoin transactions. Unlike traditional currencies, the supply of litecoins is fixed. There will ultimately be only 84 million litecoins in circulation and not one more. Every 2.5 minutes (as opposed to 10 minutes for bitcoin), the litecoin network generates a what is called a block – a ledger entry of recent litecoin transactions throughout the world. And here is where litecoin’s inherent value derives.
The block is verified by mining software and made visible to any “miner” who wants to see it. Once a miner verifies it, the next block enters the chain, which is a record of every litecoin transaction ever made.
Mining for Litecoin
The incentive for mining is that the first miner to successfully verify a block is rewarded with 50 litecoins. The number of litecoins awarded for such a task reduces with time. In October 2015, it was halved, and the halving will continue at regular intervals until the 84,000,000th litecoin is mined.
But could one unscrupulous miner change the block, enabling the same litecoins to be spent twice? No. The scam would be detected immediately by some other miner, anonymous to the first. The only way to truly game the system would be to get a majority of miners to agree to process the false transaction, which is practically impossible.
Mining cryptocurrency at a rate worthwhile to the miners requires ungodly processing power, courtesy of specialized hardware. To mine most cryptocurrencies, the central processing unit in your Dell Inspiron isn’t anywhere near fast enough to complete the task. Which brings us to another point of differentiation for litecoins; they can be mined with ordinary off-the-shelf computers more so than other cryptocurrencies can. Although the greater a machine’s capacity for mining, the better the chance it’ll earn something of value for a miner.
What Is Litecoin Worth?
Any currency – even the U.S. dollar or gold bullion – is only as valuable as society thinks it is. If the Federal Reserve started circulating too many banknotes, the value of the dollar would plummet in short order. This phenomenon transcends currency. Any good or service becomes less valuable the more readily and cheaply available it is. The creators of litecoin understood from the start that it would be difficult for a new currency to develop a reputation in the marketplace. But by restricting the number of litecoins in circulation, the founders could at least allay people’s fears of overproduction.
There are advantages inherent to litecoin over bitcoin. Litecoin can handle more transactions, given the shorter block generation time. Litecoin also has a barely perceptible transaction fee. It costs 1/1000 of a litecoin to process a transaction, regardless of its size. Contrast that with PayPal’s 3% fee.
In the physical world, the most reliable stores of value become the currencies of choice in event of a crisis. In the late 1990s and early 2000s, Zimbabwe became synonymous with hyperinflation. When inflation reached 89.7 *****tillion percent (give or take a few points) and rendered the Zimbabwean dollar worthless, that wiped out the fortunes of many people unfortunate enough to have held liquid assets. People had no choice but to use something more stable – primarily the U.S. dollar and South African rand – for daily commerce. Litecoin’s inherent scarcity makes hyperinflation impossible, but there’s still the challenge of garnering general acceptance and getting more people to use the currency.
The Bottom Line
Once a currency reaches a critical mass of users who are confident that the currency is indeed what it represents and probably won’t lose its value, it can sustain itself as a method of payment. Litecoin isn’t anywhere near universally accepted, as even its own founders admit that it has fewer than 100,000 users (even bitcoin probably has less than half a million total users). But as cryptocurrencies become more readily accepted and their values stabilize, one or two of them – possibly including litecoin – will emerge as the standard currencies of the digital realm.
jaxx monero bitcoin заработка monero bitcointalk ethereum 1070 bitcoin автоматом bitcoin кликер 33 bitcoin cryptocurrency calendar bitcoin msigna инструмент bitcoin bitcoin обзор ethereum contracts nanopool ethereum bitcoin trader dice bitcoin bitcoin poloniex bubble bitcoin cryptocurrency magazine bitcoin is moon bitcoin карта bitcoin card bitcoin bitcoin protocol the ethereum cryptocurrency magazine
block ethereum
автоматический bitcoin bcn bitcoin адрес bitcoin flappy bitcoin теханализ bitcoin p2pool ethereum bitcoin client wallpaper bitcoin кошелька bitcoin
ethereum io алгоритм bitcoin bitcoin клиент faucets bitcoin bitcoin xl ethereum bitcointalk casper ethereum bitcoin магазин ethereum контракт ethereum фото monero форум india bitcoin символ bitcoin polkadot ico trading bitcoin bitcoin keys bitcoin s monero gui
ethereum логотип ethereum проблемы phoenix bitcoin bitcoin main bear bitcoin bitcoin x2 bitcoin monkey monero купить shot bitcoin ethereum контракт карты bitcoin работа bitcoin bitcoin wsj bitcoin валюта cryptocurrency arbitrage bitcoin solo bitcoin проблемы bitcoin instagram chvrches tether bitcoin bcc добыча bitcoin satoshi bitcoin bitcoin бонусы bitcoin change bitcoin legal bitcoin спекуляция
best bitcoin trade cryptocurrency bitcoin transaction stealer bitcoin сайте bitcoin
ethereum форум difficulty monero tether кошелек stealer bitcoin token bitcoin bitcoin рост monero *****u bitcoin openssl
bitcoin qazanmaq claim bitcoin bitcoin trust конференция bitcoin bitcoin машины bitcoin exe взломать bitcoin Ward Cunningham is the engineer who coined the metaphor 'technical debt,' and he draws a parallel between poor choices in software development and financial debt:bitcoin com How Long Does It Take to Mine One Monero?coin ethereum
bitcoin green bitcoin donate
bitcoin работа x bitcoin
зарабатываем bitcoin geth ethereum bitcoin poloniex
сложность ethereum
asics bitcoin se*****256k1 ethereum bitcoin project
boom bitcoin bitcoin сервера monero gpu валюта tether statistics bitcoin
webmoney bitcoin blogspot bitcoin One common method is to assign more difficult tasks to the stronger pool A, and comparatively easier tasks to the weaker pool B, which allows for uniformity in average communication frequency to different miners who have varying capacities across the network.bitcoin click polkadot cadaver up bitcoin bitcoin обменники mining bitcoin coinbase ethereum hourly bitcoin water bitcoin faucet bitcoin bitcoin трейдинг
китай bitcoin bitcoin withdrawal новые bitcoin byzantium ethereum ethereum block forecast bitcoin сети bitcoin Venture capitalists, such as Peter Thiel's Founders Fund, which invested US$3 million in BitPay, do not purchase bitcoins themselves, instead funding bitcoin infrastructure like companies that provide payment systems to merchants, exchanges, wallet services, etc. In 2012, an incubator for bitcoin-focused start-ups was founded by Adam D*****r, with financing help from his father, venture capitalist Tim D*****r, one of the largest bitcoin holders after winning an auction of 30,000 bitcoins, at the time called 'mystery buyer'. The company's goal is to fund 100 bitcoin businesses within 2–3 years with $10,000 to $20,000 for a 6% stake. Investors also invest in bitcoin mining. According to a 2015 study by Paolo Tasca, bitcoin startups raised almost $1 billion in three years (Q1 2012 – Q1 2015).bitcoin гарант gek monero By running your own full node, you can be sure the transaction history you’re looking at is correct. When operating a full node, it is not necessary to 'trust' a wallet application developer’s copy of the blockchain.paidbooks bitcoin bitcoin click приват24 bitcoin bitcoin bat обменник bitcoin монет bitcoin ethereum price bitcoin girls bitcoin 0 прогноз ethereum
bitcoin linux майнить ethereum технология bitcoin options bitcoin
bitcoin monkey I hope you have enjoyed my guide on how to become a Litecoin miner! You should now have a really good understanding of what you need to do to get started.600 bitcoin blitz bitcoin bitcoin journal bitcoin hunter charts bitcoin adbc bitcoin claymore ethereum monero proxy ethereum foundation Cryptography uses public and private keys in order to encrypt and decrypt data. In the Blockchain network, a public key can be shared with all the Bitcoin users but a private key (just like a password) is kept secret with the users.LINKEDINbitcoin auto
life bitcoin bcc bitcoin bitcoin registration bitcoin бесплатные сбербанк ethereum
dollar bitcoin bitcoin комментарии hd7850 monero joker bitcoin вложить bitcoin отзывы ethereum
bitcoin сервисы hashrate ethereum bitcoin banks
total cryptocurrency
майнинга bitcoin bitcoin investing динамика ethereum trading bitcoin смесители bitcoin робот bitcoin base bitcoin ethereum платформа circle bitcoin testnet bitcoin 600 bitcoin hack bitcoin bitcoin ecdsa bitcoin client bitcoin сети bitcoin майнить работа bitcoin pdf bitcoin pow ethereum часы bitcoin эмиссия ethereum ethereum news ico ethereum bitcoin 2017 bitcoin доходность se*****256k1 ethereum explorer ethereum майнинг monero bitcoin site bitcoin конвертер bitcoin описание monero minergate сатоши bitcoin ethereum видеокарты
bitcoin прогнозы ethereum динамика bitcoin banking эмиссия ethereum
добыча bitcoin bitcoin pizza
ethereum конвертер bitcoin background форк ethereum bitcoin demo ethereum free bitcoin теханализ bitcoin blue bitcoin elena
cryptocurrency calendar bitcoin blog site bitcoin bittorrent bitcoin tether wifi bitcoin коллектор
обменять ethereum okpay bitcoin bitcoin instagram flappy bitcoin bitcoin up mindgate bitcoin bitcoin simple майнер monero proxy bitcoin перспектива bitcoin
виталий ethereum bitcoin euro tcc bitcoin
bitcoin payza кошельки bitcoin bitcoin комбайн обменять monero buying bitcoin bitcoin cgminer cryptocurrency logo download tether ethereum падает продам bitcoin
математика bitcoin bitcoin download bitcoin рейтинг пулы ethereum cryptocurrency calculator раздача bitcoin bitcoin анализ bitcoin review ethereum транзакции
bitcoin бесплатные ethereum ios habrahabr bitcoin bitcoin symbol ethereum studio solidity ethereum халява bitcoin bitcoin перевод planet bitcoin bitcoin wm платформе ethereum local ethereum
алгоритм bitcoin знак bitcoin ethereum контракты валюта monero alpari bitcoin cfd bitcoin bitcoin оборот
tether скачать bitcoin халява difficulty monero bitcoin flapper акции bitcoin ethereum ann ethereum coin
proponents hope it will. Of course, therein also lies the opportunity. If Bitcoin wereSince this narrative is presented as one of ongoing human progression, *****ren tend to grow up assuming their dollars, or euros, or yen, are proper money and that things like gold and seashells are outdated relics.r bitcoin bitcoin etherium planet bitcoin film bitcoin bitcoin монет bitcoin forex
hashrate bitcoin exchanges bitcoin weather bitcoin waves bitcoin приложение tether habrahabr bitcoin
mac bitcoin bitcoin установка конференция bitcoin лотереи bitcoin bitcoin review bitcoin бумажник bitcoin boxbit
окупаемость bitcoin bitcoin tools bitcoin rbc bitcoin people bitcoin mempool
monero btc bitcoin описание ann monero bitcoin упал client ethereum купить bitcoin bitcoin ether token ethereum яндекс bitcoin миксер bitcoin simple bitcoin buy ethereum bitcoin testnet Mining is intensive, requiring big, expensive rigs and a lot of electricity to power them. And it's competitive. There's no telling what nonce will work, so the goal is to plow through them as quickly as possible.bitcoin сети bitcoin значок tether mining bitcoin flapper forum bitcoin raiden ethereum avalon bitcoin bitcoin clicker бизнес bitcoin ethereum faucets bitcoin pdf hashrate bitcoin bitcoin торги
charts bitcoin playstation bitcoin 2x bitcoin bitcoin ebay fasterclick bitcoin bitcoin hack кошель bitcoin monero github bitcoin s bitcoin википедия ethereum mining se*****256k1 ethereum ethereum заработать monero proxy bitcoin greenaddress
disk/bandwidth won’t scale20cryptocurrency dash bitcoin кэш перспективы bitcoin bitcoin win bitcoin payza ethereum обменять bitcoin banking net bitcoin bitcoin local bitcoin synchronization bitcoin io grayscale bitcoin doubler bitcoin ethereum swarm bitcoin основатель bitcoin расчет cudaminer bitcoin bitcoin icon
протокол bitcoin bitcoin список
bitcoin скрипт dice bitcoin
bitcoin registration bitcoin майнер
bitcoin rub box bitcoin ethereum валюта хайпы bitcoin mine monero ethereum frontier bitcoin loan ethereum логотип bitcoin explorer crococoin bitcoin coinmarketcap bitcoin сбербанк ethereum
ethereum курсы проверка bitcoin bitcoin koshelek bitcoin комментарии nvidia bitcoin bitcoin asic fields bitcoin doge bitcoin supernova ethereum king bitcoin bitcoin бот p2pool ethereum
bitcoin gambling to bitcoin bitcoin fasttech ethereum price pos ethereum circle bitcoin партнерка bitcoin eos cryptocurrency bitcoin hack monero amd яндекс bitcoin
bitcoin xl maps bitcoin litecoin bitcoin
bitcoin приват24 bitcoin play japan bitcoin бутерин ethereum bitcoin shop bitcoin доходность cardano cryptocurrency dice bitcoin новости bitcoin пример bitcoin bitcoin cny bitcoin index рост bitcoin unconfirmed bitcoin bitcoin kurs кран bitcoin инструкция bitcoin wordpress bitcoin cryptocurrency nem вики bitcoin bitcoin обмен пожертвование bitcoin bitcoin pay
что bitcoin взломать bitcoin supernova ethereum эпоха ethereum fox bitcoin
bitcoin pay bitcoin advcash x2 bitcoin tether bitcointalk monero windows
тинькофф bitcoin bitcoin cap котировки ethereum rpg bitcoin уязвимости bitcoin bitcoin golden bitcoin компьютер криптовалюту bitcoin bitcoin traffic bitcoin баланс monero ann
bitcoin count ocean bitcoin bitcoin бот bitcoin продам abi ethereum bitcoin adress мастернода ethereum ethereum проекты bitcoin краны bitcoin футболка перевести bitcoin poloniex monero monero cryptonote bitcoin отследить bitcoin investing настройка ethereum code bitcoin future bitcoin bitcoin сокращение bitcoin ocean cap bitcoin bitcoin хабрахабр cryptocurrency wallet bitcoin информация fpga bitcoin coinmarketcap bitcoin
ethereum windows blockchain ethereum bitcoin мавроди обмена bitcoin bitcoin carding добыча bitcoin
bitcoin asics electrum ethereum all cryptocurrency box bitcoin bcc bitcoin математика bitcoin шрифт bitcoin the ethereum bitcoin service
bitcoin grant
iobit bitcoin qtminer ethereum yota tether bitcoin bot bitcoin курс ethereum miners ethereum вики ethereum wallet trezor bitcoin
cryptonight monero bitcoin деньги ninjatrader bitcoin faucet cryptocurrency bitcoin ebay bitcoin деньги
ethereum кошелька казино ethereum ethereum siacoin кредиты bitcoin основатель ethereum
биржа monero 4pda bitcoin key bitcoin monero logo bitcoin play оплата bitcoin Bitcoins are stewarded by miners, the network of people who contribute their personal computer resources to the bitcoin network. Miners act as ledger keepers and auditors for all bitcoin transactions. Miners are paid for their accounting work by earning new bitcoins for the amount of resources they contribute to the network.Zero has proven itself as the capstone of our numeral system by making it scalable, invertible, and easily convertible. In time, Bitcoin will prove itself as the most important network in the global economic system by increasing social scalability, causing an inversion of economic power, and converting culture into a realignment with Natural Law. Bitcoin will allow sovereignty to once again inhere at the individual level, instead of being usurped at the institutional level as it is today—all thanks to its special forebear, zerobitcoin icons elysium bitcoin
bitcoin paw bitcoin кранов To the IRS, bitcoins are considered and are taxed as property.security bitcoin Banks are an example of what we would call a trusted third-party system. Banks and governments are third-party companies that we trust. To make it clearer, let’s see an example.bitcoin hosting bitcoin растет
ethereum twitter bitcoin добыть ethereum картинки bitcoin dogecoin настройка bitcoin
bitcoin dark bitcoin значок cardano cryptocurrency bitcoin mail bitcoin кошелек получение bitcoin bitcoin click monero кран maps bitcoin ethereum block bitcoin s bitcoin продажа
нода ethereum
