litecoin

The Basics of Litecoin

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The Basics of Litecoin

Litecoin is a peer to peer cryptocurrency that is open source software that was released under the MIT/X11 license. Litecoin is created and is transferred on an open source, which means that is not managed by any central authority.

There are three key differences between Litecoin and Bitcoin.

The first is that the Litecoin network aims to process a block every 2.5 minutes which beats Bitcoins 10 minutes. This then according to the developers allows for faster transaction confirmation. However, the downside to this is that there is an increased blockchain size and increase in the number of orphaned blocks. The advantages though include a greater resistance to a double spending attack over the same period at Bitcoin, but this will only work if both of the networks have the same hash rate.

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Litecoin in its proof of work algorithm uses a scrypt, which is a sequential memory hard function that requires asymptotically more memory than an algorithm that is not memory hard.

The Litecoin network will also be able to produce 84 million litecoins. This is then four times the currency units that the Bitcoin network will produce.

The transactions on Litecoin are handled by a peer to peer network as well as the balances and issuance through scrypt which is the proof of work scheme. A geometric series is formed through the issuing rate and the rate will then half every 840 000 blocks every four years or so which then reaches the final total of 84 million LTC.

Litecoins are traded as a flat currency as well as for other cryptocurrencies for online exchanges. Credit card reverses are not used by litecoins as the transactions with Litecoins are irreversible.

In the Litecoin network, payments are made to addresses. These are Base 58 encoded hashes of the user’s public keys.

The Litecoin blockchain records the Litecoin transactions. Every 2.5 minutes a new block is added. A transaction is generally counted as complete after every six blocks or 15 minutes.

 

virtual currencies

The Virtual Currencies

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The Virtual Currencies

Bitcoin is a decentralised currency system that is based on a peer to peer network that is mined through the use of computers by cracking difficult math based equations.

The success of Bitcoin has spurred the launch of other virtual currencies. Altcoins is the name given to the collective currencies. Get a Payday Loan and start mining

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These other virtual currencies are easier to mine but have a greater risk in terms of lesser liquidity, acceptance and value retention.

Litecoin

The second largest cryptocurrency is Litecoin and was launched in 2011. Litecoin is based on an open source global payment network which is not controlled by a central authority and uses scrypt for a proof of work. This can be decoded with the help of CPUs of consumer grades.

Litecoin has a faster block generation rate as well as more rewards per block when compared to Bitcoin.

Darkcoin

This is a more secretive version of Bitcoin. Bitcoin are anonymous to an extent as they still keep a record of all transactions carried out in a ledger which can reveal a lot of information.

Darkcoin offers more anonymity as it operates on a decentralised master code network that makes transactions almost untraceable.

Darkcoin launched at the beginning of 2014 and has had an increasing fan following in a short span of time. Darkcoins are mined through the use of CPU or GPU.

Peercoin

Peercoin was launched in 2012 and was the first digital currency to use a combination of proof of stake and proof of work.

The coins are mined through the commonly used proof or work hashing process but as the hashing difficulty increases over time, users are rewarded with coins by the proof of stake algorithm which requires little energy for generating blocks. Over time the network of Pee4rcoin will consume less energy.

As there is no fixed upper limit on the number of coins, Peercoins is an inflationary currency.

Dogecoin

Dogecoin uses scrypt technology as a proof of work scheme. Dogecoin has a block time of 60 seconds and the difficulty retarget time is four hours.

There is no limit to how many Dogecoin can be produced which means the supply of coins will remain uncapped.

Dogecoins deals with larger number of coins that are lesser in value individually which then makes the currency more accessible with a low entry barrier and are good for carrying out smaller transactions.

Primecoin

Primecoin works with a proof of work based on prime numbers which is different from the usual system of hash cash.

Primecoin finds special long chains of prime numbers and offers a greater security and mining ease to the network.

 

Bitcoin

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Bitcoin

Bitcoin is simply a form of digital currency that is created and held online. Bitcoin is not controlled by anyone and are produced by people all around the world using software that is able to solve mathematical problems.

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You are able to use bitcoin to buy things electronically, but bitcoin is decentralized. This means that no single institution controls the bitcoin network, which means that a large bank is unable to control the money.

Bitcoin was created by a software developer called Satoshi Nakamoto. The idea behind the bitcoin currency was to create a currency that was independent of any central authority, could be transferred electronically with low transaction fees.

Bitcoin is created digitally by a community that anyone is able to join. Bitcoins are mined by using computer power in a distributed network. The network is also able to process transactions that are made with the virtual currency.

The rules that make bitcoin work say that only 21 million bitcoins can ever be created by miners. These coins can though be divided into smaller parts. The smallest divisible amount is one hundred millionth of bitcoin and this is named after Satoshi.

Bitcoin is based on math and the software programs that people use to create bitcoins follow a mathematical formula that is freely available. Also the software is an open source so that anyone is able to look at it and ensure that it is working.

Bitcoin Features

There are various features of bitcoin that set it apart from normal currencies.

  1. Decentralized

Bitcoin is not controlled by a central authority; instead each machine that mines bitcoin and processes transactions makes up part of the network and the machines work together. If a part of the network falters, the money still flows.

  1. Easy

Bitcoin is simple to set up. You will need to create a bitcoin address and that’s it. Also there are no fees that need to be paid.

  1. Anonymity

Users are able to hold multiple bitcoin addresses which aren’t linked to names, addresses or personal information. Bitcoin do store details of every transaction that is made in the network and is called a block chain. The block chain is able to tell a lot of information. If you have a publicly used bitcoin address, then anyone is able to see how many bitcoins are stored at the address.

  1. Fees

When it comes to transaction fees, bitcoins are very low.

  1. Quick

Transactions made with bitcoin are super-fast as you are able to send money anywhere and it will arrive in a matter of minutes. Once bitcoins have been sent there is no way you are able to get them back.