What is Litecoin? How does it work?


Charlie Lee, a computer scientist, created Litecoin in October 2011. He wanted to build something more scalable and speedier than Bitcoin. Litecoin is called “the silver to Bitcoin’s gold, a cryptocurrency alternative to Bitcoin.” It is the 14th biggest cryptocurrency in the world by market capitalization. The employment of different cryptographic methods is the most significant distinction between Litecoin and bitcoin. Lee liquidated all of his Litecoin shares in 2017, claiming a potential conflict of interest. This happened at the same time as Bitcoin, and several other currencies reached their all-time highs.

Litecoin and Security

Even though both Bitcoin and Litecoin use PoW consensus techniques, miners receive 12.5 bitcoins or Litecoins for every block they confirm. To become a validator, you must first deposit at least 32 ETH, which is a significant sum for the typical individual. After then, the payment is half according to a predefined formula.

Due to the expensive GPU power required to take over the network, Litecoin, Etherum, and Bitcoin are among the three cryptocurrencies most vulnerable to 51 percent attacks or double-spending. Due to its reliance on miners, Bitcoin is typically immune to this sort of assault, but Litecoin and Etherum must be vulnerable.

The DAO, a platform-based program, was hacked in 2016 by organizations that discovered and exploited a flaw in the DAO’s design. As a result, the community decided to fork the blockchain to exclude the hackers’ transactions, making their ownership less meaningful. The opponents of the change called themselves “Ethereum Classic,” whereas supporters called themselves “Ethereum.”