Litecoin vs. Bitcoin
Litecoin (LTC) and Bitcoin (BTC), two of the more popular cryptocurrencies in terms of value and influence, are often compared to one another.
In fact, Litecoin has been referred to as “silver to Bitcoin’s gold”, a tagline that often entices potential buyers. On the surface, the two cryptocurrencies offer similar value as alternatives to traditional money.
Litecoin copied and modified Bitcoin’s code with the aim to finalize transactions faster and to pioneer new features before they go live on Bitcoin.
Bitcoin was created as a response to government monetary manipulation, and it seeks to serve as an alternative to traditional government currencies.
While this may be an oversimplification of how these two complex networks work, the goal of this article is to give you a side-by-side comparison of Litecoin vs Bitcoin so you can start to better understand and appreciate the differences yourself.
The difference between Litecoin and Bitcoin
Litecoin was created with the intention to attract merchants who were looking for a quicker way to process transactions.
To achieve this, Litecoin copied the Bitcoin code and modified it by reducing the amount of time it took for new blocks of transactions to be added to the blockchain.
As interest from merchants in cryptocurrency faded, however, Litecoin would adopt a more aggressive approach to development, pioneering new features like the Lightning Network and Segregated Witness, cutting-edge technologies now live on Bitcoin.
As such, the project differs from many other cryptocurrencies in that it has always been positioned as a complement to Bitcoin by serving as a sort of a testnet for new Bitcoin features.
Bitcoin is an open-source software that allows its global user base to manage a digital money supply outside the control of any government or central bank.
It was created in response to the 2008 global economic crisis as a means to combat inflation. In fact, the first mined block contained the message: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks,” a message many believe signifies the project’s revolutionary intent.
The Bitcoin software enables the computers running it to manage a ledger (the blockchain) that accounts for all transactions made using its currency (BTC) by enforcing a variety of rules.
The Bitcoin blockchain is a full record of the network’s transaction history validated by nodes, or individuals running its software. This ensures that each BTC cannot be copied or modified, and that bitcoins cannot be created or used in a way that is against its rules.
Bitcoins are scarce, divisible and transferable, making them a valuable alternative money.