The key difference between litecoin and ethereum
Our website BestRate.org gives you a possibility to directly convert LTC to ETH between your own wallets. In the world of cryptocurrencies, before you select a coin for investment it is recommended to investigate the technology that stands behind this coin. Here is what you should know before you decide to exchange Litecoin to Ethereum or vice versa
Charlie Lee, the creator of Litecoin, aimed to give a possibility of mining cryptocurrency to usual people. Although Litecoin is technically very similar to bitcoin, it uses a different mining algorithm based on the Scrypt technology which makes it possible to mine Litecoin on consumer-grade hardware. Another benefit what Litecoin has in comparison with Bitcoin is the transaction speed as it allows to confirm transactions 4 times faster.
This story is a little bit different with Ethereum. This cryptocurrency was created as an alternative to bitcoin as well and apart from the payment tool it also provides a full platform for creating decentralized apps. Thus, it provides its users with much more features and has more possibilities of growth in the future in case you decide to change LTC to ETH.
What is Litecoin mining algorithm?
Learn more about Litecoin mining algorithm before you decide to exchange ETH to LTC.
Litecoin utilizes the Proof-of-Work mining algorithm named Scrypt witch is different from the one that is used for Bitcoin. Due to its simplicity and speed, this algorithm allows to find new blocks on the consumer-grade machines so you can mine cryptocurrencies without purchasing any specialized equipment. Moreover, this algorithm can work together with Bitcoin on the same machine which gives advantages to Bitcoin miners as well.
What is Ethereum mining algorithm?
Ethereum bases on the proof-of-work algorithm as well, so the mining process is not very much different from the one that is used for Litecoin. However, the difference is that Ethereum cannot be mined on the specialized equipment at all and its production can never become the exclusive right of huge companies.
Vitalik Buterin, the creator of Ethereum, plans to switch the whole system to the Proof-of-Stake algorithm in order to decrease energy consumption, but no specific date has been announced yet.
The circulating supply of Litecoin equals to 62,411,976, while its maximum supply equals to 84,000,000.
For Ethereum, the circulating supply equals to 106,661,640, while its maximum supply equals to emission infinite.
If you want to exchange LTC for ETH, the market capitalization is a very important index that you should pay attention to.
For Litecoin, the current market capitalization equals to $7,364,741,610.00. Ethereum’s capitalization equals to $33,389,792,582.00.
Volume of transactions
During the last 24 hours, Litecoin’s volume of transaction equals to $5,600,152,454.92. For Ethereum, this index equals to $15,828,544,267.63.
Average transaction speed
Ethereum network has a relatively low capacity as it can only process 19 transactions per second. Typically, it takes from 5 to 20 minutes for a transaction to be confirmed on Ethereum network. Also, the confirmation time can be significantly increased if you try to buy LTC with ETH at the same time when some popular Ethereum-based ICO starts it token sale and investors rush to get their stake.
Litecoin has better characteristics. The average confirmation time for Litecoin is around 2.5 minutes.