How Litecoin Competes With Other Cryptocurrencies And Future Of The Coin
Since the release of the individual digital cryptocurrency Litecoin on October 7, 2011 by Charlie Lee, the developer has been looking on ways to stand out and compete against the ever so popular, Bitcoin. There are several differences that Litecoin has compared to Bitcoin. The first is that the blocks occur every 2.5 minutes, with the results being impressive by having quicker confirmations. Second difference is that uses the scrypt algorithm for proof of work, meaning that it is never in competition for hashing power with cryptocurrencies utilizing the SHA256 proof of work algorithm. The scrypt algorithm is a memory hardware that makes it harder to create custom chips, reducing susceptibility from force attacks. Lastly, the third major difference is that Litecoin has larger blocks, being able to fit a large number of transactions within each block, thus allowing network fees to remain very low. With these three differences, Litecoin hopes to compete with other digital currencies, such as Bitcoin.
Over the past months, we have seen the ups and downs of Litecoin, the individual currency did at one time achieve a new high, surpassing pass $78, and increasing by 17.28 percent. Also, Litecoin has SegWit Witness on its network, the digital currency has seen a great resurgence. SegWit Witness was activated to Litecoin’s network on early May. Having SegWit Witness, it opens doors to new features such as smart contracts. Let’s explain in detail how SegWit Witness is giving life to Litecoin, and making it a competitor on the digital market.
Like mentioned, with SegWit Witness being on Litecoin’s network, it helps on the feature of smart contracts. Smart contracts allows cryptocurrency users to stipulate if-then conditions regarding how they want to be paid out. Since Litecoin is based on the fork of the Bitcoin code, the digital currency already allows for simple smart contracts like multi-signatures, meaning two parties will need to sign off on the payment. Now with this activation, SegWit Witness is bringing in an whole new and complex scripts. One of the scripts named ‘smart crypt vault,’ combines MAST, acronym meaning Merkelized Abstract Syntax Trees, restricts how coins are spent. MAST is combined with covenants. With both of these combined, it allows Litecoin users to add additional and more complex conditions on payments.
Includes a Lightening Network
Since SegWit Witness implementation, speed is essential. This is why Litecoin now has Lightening Network. Everything needs to be completed rapidly, and people wants transactions to be processed and completed on time, and this is where the Lightening Network comes in.
Investors of Litecoin will also have the availability to send and receive the cryptocurrency efficiently, making this great news for the developers. Litecoin will be using LoafWallet, which is a simple payment verification (SPV) that’s designed for mobile users. Newcomers will be able to purchase small amounts of Litecoin without needing to set up a Coinbase account.
The Future of Litecoin
While Litecoin is not yet like the popular cryptocurrency Bitcoin, there are some positive news for investors. The reason is because Litecoin can easily adapt to the useful features that Bitcoin has. Plus, it is much cheaper, fast, and economically useful, making the future of Litecoin promising for the investors.
Invest in Litecoin
There are many reasons regarding why you should invest in Litecoin. While it is currently facing the same challenges like other currencies, success over the last few months makes Litecoin a standout performer within the cryptocurrency market. Bitcoin investors are moving to Litecoin, creating a rotation of resources on raising the price higher. Plus, you no longer need to buy bitcoin first anymore, and can start with Litecoin. Lastly, looking ahead towards the future, analysts say for 2018, the market price value for Litecoin will range from $300.00 to $400.000, making investing more the reason to do it. While Litecoin is not like Bitcoin, it has potential to be number two, surpassing Ethereum.
Ex-Google engineer, Charlie Lee is the creator of Litecoin and MD of the Litecoin Foundation. Previously Director of Engineering at Coinbase, Lee now focuses full-time on Litecoin. To enhance fungibility and privacy of LTC, integration of MimbleWimble has begun, however Lee has recently announced a crowdfunding launch to fund the development.
Coinbase is a digital currency exchange headquartered in San Francisco, California.