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How Litecoin (LTC) works

5 mins read

Mining is done by PoW

Litecoin mining is done by the same “Proof-of-Work (PoW)” as Bitcoin.

PoW is a mining method that rewards the user who first gets the answer from a computer calculation.

Mining using PoW is said to be difficult because it requires a computer with high capacity and a huge amount of electricity.

On the other hand, since we are conducting mining competitions by competition, there is a low possibility of fraud and there is an advantage that it is highly safe.

In addition, since Litecoin is mined by PoW, Litecoin will also be a “decentralized” virtual currency without an administrator.

However, since the “Litecoin Foundation” represented by the developer Charlie Lee is developing the currency, it may be pointed out that there are actually powerful people, but it is involved in mining. It is treated as if there is no administrator because it has not been done.

 

Compatible with Lightning Network

Litecoin is a virtual currency that can implement the processing system “Lightning Network” using side chains.

Lightning Network is a system that promotes micropayments (small payments) by executing off-chain transactions that are separate from Litecoin’s block chain.

With micropayments, payments can be made in units of 1 yen or less, but the problem with conventional systems is that payment fees are incurred.

That’s where the Lightning Network came to the fore.

Since the Lightning Network uses a “payment channel” that connects two users off-chain, only the final transaction result will be approved by the block chain after summarizing the details in a separate frame.

This reduces transactions and improves the cost and speed issues of micropayments.

This improvement is a feature of Lightning Network and is the reason for its attention.

 

 

History of Litecoin (LTC)

Litecoin was released in April 2013 and has begun to be distributed to the market.

After that, the Cyprus financial crisis in November 2013 stimulated the inflow of funds into virtual currencies, affecting the price of Litecoin.

 

LitePay ends service

Litecoin’s payment app “LitePay” was scheduled to be released in 2018, but the project was canceled due to the lack of transparency of related companies.

LitePay was touted as a system that allows instant conversion to US dollars using a cryptocurrency wallet and a specific debit card, but as a result, the service has ended.

 

Announcement of debit card “Litecoin Block Card”

The Litecoin Foundation has announced the Litecoin Block Card, a physical debit card.

With Block Card, you can pay with virtual currency at stores and online shops that accept credit cards.

Since the opportunities to use Litecoin will increase further, we can expect to improve the usability of virtual currencies.

In addition to Litecoin, Block Card supports 12 types including Bitcoin, Ethereum, Bitcoin Cash, Ripple, etc.

The card is available in the United States, but there is a possibility that it will land with the aim of expanding the service in the future.

 

There are no major problems with the currency itself

Litecoin itself has been operating without any major trouble since its release. It can be said that it is a highly stable currency because it has no experience of implementing hard forks.

A high sense of stability is also an element that can be expected to collaborate with various companies.

In the past, it was used for payments on the major game distribution company Steam, and there is a possibility that we will collaborate with more companies in the future.

 

What is the future of Litecoin (LTC)?

As for the future of Litecoin (LTC), the value of Litecoin (LTC) will increase as more companies adopt Litecoin as a payment method.

If Bitcoin (BTC) is gold, Litecoin (LTC) is often said to be silver.

In fact, Litecoin (LTC) is focusing on its practical application to payment services.

Litecoin (LTC) is a virtual currency created for more daily use, so if virtual currency becomes popular as a payment solution, Litecoin (LTC) will be more popular than Bitcoin (BTC). It may be more pervasive to the general public.

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