Cryptocurrency derivatives trading is a new trading area that many daytime traders are interested in. Several people hold some experience and knowledge of what is Litecoin and what is the Difference between Bitcoin and Litecoin. We will present you with a brief introduction of these.
What is Litecoin?
The same as Bitcoin, Litecoin (LTC) is a kind of open-source decentralized P2P cryptocurrency. Litecoin was published in October 2011, it runs on what is known as the cryptocurrency PoW algorithm, which also utilizes Bitcoin’s fundamental SHA-256 PoW algorithm. Litecoin is characterized as the ‘silver’ to Bitcoin’s gold. Apart from the fact that Litecoin utilizes a different algorithm, the difference from Bitcoin in the following ways.
What’s the Difference Between Bitcoin and Litecoin
The Difference Between Bitcoin and Litecoin can be defined as follow. Firstly, from the usage of the cryptocurrency PoW algorithm. Litecoin submits a much faster action speed than Bitcoin does. The time required to generate a block on the Bitcoin BC is around 10 minutes, however, the common block work time for the Litecoin blockchain is about 2.5 minutes, which is much faster than that of Bitcoin.
The second difference is that the complete supply border of Litecoin is about 84 million coins, this is much higher than the 21 million supply limit of Bitcoin.
More about Litecoin
What you may need to know more about Litecoin, including this.
Firstly, Litecoin is a medium of exchange and also required as a method of payment by a slowly increasing quantity of online traders.
Secondly, Litecoin is a pseudo-anonymous coin. The same as Bitcoin, Litecoin is also a pseudo-anonymous coin. Everyone can verify the chain of LTC trade on the basis of the public ledger because the chain can recognize the money sender and/or recipient.
Thirdly, Litecoin is a case of “Atomic Swaps”, let’s look at an example of this: if somebody has one Bitcoin and wants Litecoins instantly, normally the person needs to go to a platform to exchange it and pay fees to get this trade done. Assume that B holds Litecoins and he wants a Bitcoin instant, then with an atomic swap, these two people can directly trade their coins with each other. This is very convenient.
Since this kind of program is still in its primitive development cycle, the implementation of the atomic swap technology needs a lot of IT-knowledge. For instance, a link is made between two cryptocurrency blockchains, which requires the implementation of an IT-protocol known in the crypto-community as the “Lightning Protocol”.
Thanks for your time, after reading this article, you may have a deeper understanding of what is Litecoin and what is the difference between Bitcoin and Litecoin. It was an honor to share the experience of cryptocurrency derivatives trading with you. For more information, please follow all of our newest articles on Bybit.
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