What is Litecoin (LTC)
Litecoin was one of the first coins to join the sector. As a result, it remains one of the biggest coins in the market capitalization sector. This hugely famous coin can be found on virtually any crypto exchange. It’s also one of the most commonly recognized cryptocurrencies in the world. You may use Litecoin to buy products, utilities, or even participate in other crypto ventures as they arise.
Like other cryptocurrencies, Litecoin uses blockchain technologies to stay decentralized. Decentralized currencies vary in many ways from conventional fiat currencies. In the first case, they are not issued by a single body such as the government. Instead, Litecoins are created using a cryptographic protocol. Officially, Litecoins are authorised under MIT/X11.
How Does Litecoin (LTC) Work
Litecoin acts in a way somewhat close to that of Bitcoin. In reality, this online payment mechanism was directly inspired by Satoshi Nakamoto and the release of the Bitcoin protocol. Many people are shocked to hear that Litecoin was one of the first Bitcoin forks on the market. As such, this blockchain is functionally nearly similar to Bitcoin, although with several major variations.
LTC’s developer, Charlie Lee, launched his Litecoin project by borrowing the Bitcoin core code. He then made a series of significant improvements to the protocol. One of the key upgrades he initiated was the decrease of the block approval period from 10 minutes to 2.5 minutes. As with Bitcoin, these blocks comprise the next batch of transactions pending clearance.
Block Time Decrease
Block time reduction has provided Litecoin more scalability than its predecessors. In fact, LTC is currently 4x faster than Bitcoin in terms of transactions per second (tps). Lee has changed the transaction fee model within the LTC to make it more attractive to the masses. Specifically, the fee structure of Litecoin is 1/50th the size of Bitcoin.
This fee arrangement is one of the core aspects of the network. Surprisingly, it only takes 1/1000 of the LTC to process a transaction. This miniscule fee does not change based on the amount of the purchase. You’re paying the same amount, regardless of the scale. This approach offers a significant upgrade to existing industry leaders. For example, PayPal charges a 3% fee for each purchase within its network.
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