The key difference between Litecoin and Bitcoin
You can exchange litecoin to bitcoin and vice versa on our website, BestRate.org. Before you exchange BTC to LTC, we recommend investigating the key difference between these two currencies and the backstory of each one of them.
Litecoin is a peer-to-peer digital currency, the fork of Bitcoin, that helps to make instant online payments for anyone anywhere. Being technically almost identical to Bitcoin, Litecoin is still different. It uses a scrypt-based mining proof-of-work algorithm that is targeted at regular computers and thus can be mined with consumer-grade hardware. With Litecoin you can make transaction confirmations 4 times faster than with Bitcoin. The Litecoin network total capacity is 84 mln units.
What is Bitcoin mining algorithm?
Bitcoin mining is based on the Proof-of-Work (PoW) algorithm. The network of specialized computers finds the blocks by solving computational problems. These blocks are linked into one chain. For every newly discovered block, miners are rewarded with bitcoins and transaction fees.
The transaction data is written into these blocks. It remains there forever and cannot be altered or reversed. The only way to reverse a transaction is to gain more than 51% of the network hash power into one’s hands. Since the blocks are created on different computers all around the world, the chances for such a situation to happen are very small, which makes bitcoin network really secure.
What is Litecoin mining algorithm?
Litecoin mining is based on the Scrypt mining algorithm which is different from the one used for bitcoin mining. Scrypt is simpler and faster which makes it possible to find the new blocks on the end-user machines and doesn’t require special equipment.
The purpose of Litecoin is to provide a mining algorithm that can be run simultaneously with Bitcoin on the same hardware. As the special ASICs for Bitcoin continue to get more popular, Litecoin fulfills these goals.
In spite of these differences, you can easily convert Litecoin to Bitcoin on any exchange platform. The difference in mining algorithm only affects the transaction speed within the given network.
The circulating supply of Litecoin equals to 60,045,825, while its maximum supply equals to 84,000,000.
For Bitcoin, the circulating supply equals to 17,485,050, while its maximum supply equals to 21,000,000.
If you want to convert BTC to LTC, the market capitalization is a very important index that you should pay attention to.
For Litecoin, the current market capitalization equals to $1,913,177,315.00. Bitcoin’s capitalization equals to $64,100,786,673.00.
Volume of transactions
During the last 24 hours, Litecoin’s volume of transaction equals to $537,225,781.18. For Bitcoin, this index equals to $5,435,401,853.71.
Average transaction speed
Bitcoin has a very small block size and can only process 7 transactions per second. If you specify a very small transaction fee, the money may never reach the recipient. If the network gets overloaded, the transaction fees may be really high. Typically, it takes 5-30 minutes to make a payment with Bitcoin.
Litecoin was designed to improve Bitcoin transaction speed. It allows to process transactions much faster. The average transaction speed on Litecoin equals to 2:30 minutes.