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Litecoin founder Charlie Lee spoke on CNBC and explained the differences between Litecoin and Bitcoin. He reiterated previous comments that it was cheaper and faster. But, the interesting thing is that CNBC rarely gives much coverage to LTC, however, Lee had the opportunity to promote his project to a general audience.
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Litecoin is one of the few long-standing projects that still stands out today
Charlie Lee launched Litecoin in October 2011 with the intention of it being a “light” version of Bitcoin. As a clone, it shares many similarities, but the fundamental difference comes from Litecoin employing the newer Scrypt Proof-of-Work (PoW) algorithm over Bitcoin’s SHA-256.
Cryptocurrency mining can occur using a CPU, GPU, or ASIC miner. ASIC miners can generate more hashes (attempts) per second to match the target data string and “win” the block. Therefore, ASIC miners have a clear advantage over other means of mining.
Under these circumstances, Bitcoin mining has become an ASIC “arms race” and a game that can only be played by those with the necessary resources.
Litecoin developers choose Scrypt because it is less susceptible to ASIC mining. While Scrypt ASIC miners have been available since then, a significant portion of mining on the network is still done via CPU and GPU, making Litecoin mining a more accessible option for ordinary people.
Expanding on the differences, Lee spoke of Litecoin having faster confirmation times and a larger supply of tokens.
“It is also faster, it has more coins than Bitcoin, it has four times more coins and it is also four times faster. So Bitcoin transactions occur every ten minutes, Litecoin transactions occur on average every two and a half minutes. “
But what makes Litecoin more suitable as a medium of exchange is the low fees it offers. For all these reasons, Litecoin has managed to remain a large-cap company, while projects like Namecoin and Peercoin have faded into obscurity.
Low fees make it an attractive proposition
When asked to explain the congestion in Bitcoin and how that leads to high fees, Lee said that because the network is so busy, miners select the highest paying transactions to write to the next block.
“The Bitcoin blockchain is full. Every time a block appears, the transactions use the entire block. So because of that everyone is racing to get their transactions on the next block. So the way they do it is to compete by paying more fees, so miners will choose the transactions that pay the most fees… “
This is not the case with Litecoin. It has higher “bandwidth” and less congestion, giving it some of the lowest rates in the industry. Data from bitinfocharts.com puts the current average transaction fee at $ 0.046.
CNBC’s willingness to host Lee and allow him the opportunity to explain Litecoin’s value proposition was a major blow to the project.
Source: LTCUSD on TradingView.com
