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.

 

Let’s take a deeper dive into the difference between Bitcoin and Litecoin.

litecoin vs bitcoin
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LITECOIN

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 vs litecoin

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

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Litecoin

October 7th, 2011

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Bitcoin

Sách trắng về Bitcoin được xuất bản vào ngày 31 tháng 10 năm 2008 trên danh sách gửi thư mật mã. Phần mềm sau đó đã hoạt động vào ngày 9 tháng 1 năm 2009.

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Litecoin

Charlie Lee

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Bitcoin

Bitcoin was created by a pseudonymous individual or group under the name Satoshi Nakamoto. To this day, Bitcoin’s creator remains unknown.

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Litecoin

LTC

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Bitcoin

BTC (Note: You may see BTC appear as XBT on other platforms)

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Litecoin

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.

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Bitcoin

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.

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Litecoin

Litecoin được ra mắt và tạo ra vào năm 2011 và kể từ đó đã được liên kết chặt chẽ với người sáng lập của nó, Charlie Lee, một nhà khoa học máy tính trước đây đã làm việc cho Google.

 

Trong nỗ lực giúp mọi người “sở hữu bitcoin và giữ bitcoin”, Lee đã gạt việc phát triển Litecoin sang một bên và tham gia một sàn giao dịch tiền điện tử với tư cách là Giám đốc kỹ thuật từ năm 2013-2017.

 

Vào cuối năm 2017, Lee đã rời sàn giao dịch tiền điện tử để theo đuổi việc phát triển Litecoin toàn thời gian. Lee hiện là giám đốc điều hành của Litecoin Foundation, một tổ chức phi lợi nhuận dành riêng cho dự án.

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Bitcoin

Bitcoin’s white paper, titled “Bitcoin: A Peer-to-Peer Electronic Cash System” , was released by Satoshi Nakamoto in 2008.

 

The first 50 bitcoins were mined upon the release of the software, enabling a decentralized network of computers to run a digital economy that is still thriving today.

 

Satoshi famously left the project in 2011 and hasn’t been heard of since, though you can find out more about his (or her) attitudes toward the technology in various emails and forum posts.

 

Since then, hundreds of developers have contributed to improving Bitcoin’s code, whether it is routine bug fixes or great, efficiency driven, improvements.

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Litecoin

Vì muốn tạo ra một giải pháp thay thế cho các hệ thống thanh toán như Visa và PayPal, Litecoin đã ưu tiên các lựa chọn thiết kế nhằm làm cho các giao dịch của mình rẻ hơn và nhanh hơn.

 

Litecoin giữ cho mạng của mình an toàn và phi tập trung, đồng thời điều tiết nguồn cung tiền mới được phát hành vào nền kinh tế của nó bằng cách sử dụng Khai thác Bằng chứng công việc (PoW) nơi các thợ đào chạy đua để hoàn thành các câu đố mật mã để đề xuất các khối tạo nên chuỗi khối Litecoin.

 

Litecoin khác với bitcoin ở chỗ các khối được thêm vào chuỗi khối của nó khoảng 2,5 phút một lần (trái ngược với 10 phút trên Bitcoin).

 

Hơn nữa, phần mềm khai thác cần thiết có thể được sử dụng với phần cứng cấp máy tính. Ngày nay, người ta vẫn có thể khai thác LTC bằng thiết bị của những người có sở thích, mặc dù thị trường của nó bị thống trị bởi những người khai thác quy mô lớn.

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Bitcoin

Central to Bitcoin’s design is the ability for two users to send each other BTC from anywhere around the world, without the need for an intermediary.

 

In order to keep its network secure and decentralized, while regulating the supply of new money that gets released into its economy, Bitcoin uses a process called “mining”.

 

In this system, called Proof of Work (PoW), miners race to complete cryptographic puzzles to propose blocks that make up the Bitcoin blockchain.

 

When a block is discovered by a miner, it is announced to the network, and, when it’s verified by every node, the miner gets compensated in newly minted BTC. 

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Litecoin

Litecoin’s cryptocurrency, LTC, has a limited maximum supply, meaning that according to the software’s rules there will only ever be 84 million LTC.

 

Similar to Bitcoin, 50 LTC were released when the first block was mined in 2011 and the block reward gets halved roughly every four years.

 

Through this process, more than 66 million LTC have been made available as of 2020. The last LTC is projected to be mined in 2142.

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Bitcoin

One of the biggest value propositions of Bitcoin is its monetary policy – only 21 million BTC will ever be introduced into the network’s economy.

 

When the first block was mined in 2009, 50 BTC were released, a block reward that is cut in half roughly every four years. This event is known as the halving, or halvening.

 

Through this process, more than 18 million BTC have been made available as of 2020. The last bitcoin is projected to be mined in 2140.

Useful resources

If you are interested in learning more about Bitcoin and Litecoin, please visit Kraken’s What is Bitcoin? and What is Litecoin? pages.

 

Want more in depth information on specific cryptocurrencies and blockchain projects? If so, visit our Learn Center to further your education on this ever-growing space.