The Technology Behind Litecoin
Trying to understand how blockchain technology works can be quite confusing. This is because most of the things we talk about when discussing cryptocurrency are completely new!
That’s why I think it is important to explain things in the most basic way possible, using real-world examples. So, let’s find out a bit more about Litecoin blockchain technology.
What is Litecoin? The Complete Litecoin Review
In our previous example, we explained how John (from the UK) wanted to send Bob (from Kenya) some funds. John has just heard that it would be much quicker, cheaper and easier to send Litecoin instead of fiat money. Let’s find out how he can do this.
To receive funds, you need a Litecoin wallet address. Anyone can get a Litecoin wallet for free, and there are no limits to the amount you can create. Think about it like a bank account.
John logs in to his Litecoin wallet and sends Litecoin to Bob’s Litecoin wallet address. John decides to send Bob 10 Litecoins.
Once John sends the funds, they are then sent to the Litecoin blockchain.
There will be thousands of other transactions that are also going through the Litecoin blockchain. Every 2.5 minutes, a new block is created. Think about a block as a container of a transaction.
The block (or container) carries lots of different transactions, including John’s. Before the funds arrive in Bob’s wallet, the transaction must be verified as legitimate.
As Litecoin is decentralized, there is no single authority to confirm a transaction. Instead, a group of volunteers called miners use their computing power to solve really difficult puzzles. This is how transaction blocks (or, in our case, containers) are verified.
After 2.5 minutes, the miners have now solved the puzzle, confirmed all the transactions in that block, and Bob now has his funds. It’s as simple as that!
Note: When I use the term "fiat money", it basically means real-world money. USD, GBP, EUR, and YEN are all examples of fiat currencies!
Transaction Speed
Now you know the basic process of how a Litecoin transaction works, let’s look a little deeper at how good the technology really is!
So, the whole point of Litecoin was to improve on Bitcoin’s flaws, right? Well, then - how do they compare? Well, each Bitcoin block takes 10 minutes to confirm. Litecoin is 4 times faster than this, at 2.5 minutes. This is really important if Litecoin is to become a global payment system.
After 2.5 minutes, the block has 1 confirmation. This means that it can’t be reversed. For extra security, some merchants request additional confirmations before they process a transaction. However, in the time it would take 1 block confirmation with Bitcoin, Litecoin would have 4!
Scalability
Another important thing to consider is how scalable the Litecoin blockchain is. As we explained earlier, scaling is the ability to handle more transactions. However, there is always a limit to what is possible.
Bitcoin is only able to process a maximum of 7 transactions per second. Ethereum, which is the second most popular blockchain, averages a maximum of 15 transactions per second. How many do you think Litecoin can handle?
What is Litecoin: a Litecoin on a black keyboard.
Well, Litecoin is able to process a maximum of 56 transactions per second! This makes it much faster than both Bitcoin and Ethereum put together! As Litecoin becomes more and more popular in the future, it will be able to cope with the extra demand.
Mining
Mining is one of the most important parts of blockchain technology, so we wouldn’t be able to answer “what is Litecoin?” without talking about it!
Basically, mining is the process that allows people to send and receive funds without needing a third party! There are many different types of mining though, but they are each a type of consensus model.
Litecoin uses a consensus model called Proof-of-Work, or PoW for short. Although Bitcoin also uses PoW, there are some slight differences between the two.
Bitcoin use something called SHA-256 hashing.
What is Litecoin: SHA-256.
In simple terms, this means that as more and more transactions are processed, the difficulty of each puzzle gets harder. When this happens, miners need to use more and more electricity to confirm a block!
These days, Bitcoin miners need to use ASICs (Application-specific integrated circuits) hardware, which is really expensive. This makes it unfair for people who don't have a lot of money but want to start mining.
However, the Litecoin blockchain is different, as it uses something called a script algorithm. Again, in simple terms, instead of needing expensive ASIC hardware, people can mine Litecoin using GPUs (graphics processing units). GPUs are much cheaper, meaning that more people can afford to mine!
What is Litecoin? The Complete Litecoin Review
This is great for miners with less money. However, in the future, it might be possible that ASIC hardware will be used to mine Litecoin. So, when it does, it means that those who can afford expensive equipment will have more chance of receiving Litecoin mining rewards.
So, if you are looking to mine Litecoin, then start now before it’s too late!
If you have read our “what is Litecoin?” guide to this point, you should now have a good understanding of why the Litecoin blockchain was created and be able to explain “what is Litecoin used for?”.
Now, we are going to talk about Litecoin’s security features!
Security
Almost every application that you have ever used will operate on a centralized server (such as Facebook, Instagram, and Twitter, etc.). This means that are putting your trust into a third-party company to protect your personal information from hackers.
Your bank is another good example of a centralized company. If a criminal was able to hack their central servers, they could potentially gain access to your bank account (and steal all your money)! Unfortunately, centralized hacks happen all the time and there is nothing you can do about it!
That was until the creation of decentralized payment systems like Litecoin! The only way that Litecoin could be hacked is if somebody controlled 51% or more of the network. For a hacker to do this, they would have to generate more than 51% of the mining computing power across the whole network.
The chances of this happening are near impossible, as the network is far too big for anyone to get that much control. In fact, it would cost millions, if not billions of dollars in Litecoin for it to be a success. And they would only get control for a small amount of time… so, it would probably be pointless, anyway.
What is Litecoin: a Litecoin on a table.
The most important thing is how secure your Litecoin’s are. This depends on how/where you choose to store them. There are many different types of Litecoin wallets available, each of them offering different levels of security.
Think about how you would store your money in the real world. Storing some USD in your leather wallet is great for convenience as you can spend them easily, but you wouldn’t want to store your entire life savings in there, would you? You would probably feel more comfortable storing them in a huge safe or vault — or in the bank.
Well, this is very similar to how you would store your Litecoin. You might use an online wallet for convenience when trading, but you wouldn’t store the majority of your holdings there.
day bitcoin bitcoin map
gemini bitcoin
bittorrent bitcoin secp256k1 bitcoin вклады bitcoin bitcoin кошелька bitcoin ethereum monero algorithm bonus bitcoin nodes bitcoin команды bitcoin water bitcoin p2pool monero polkadot stingray cryptocurrency dash bitcoin capital настройка monero hacking bitcoin bitcoin maps bitcoin ishlash bitcoin calculator bitcoin проверка ropsten ethereum биржа monero bitcoin analysis ethereum classic сервисы bitcoin
bitcoin today кран bitcoin лотереи bitcoin
bitcoin 999 bitcoin drip символ bitcoin live bitcoin bitcoin путин daily bitcoin ethereum fork
ethereum покупка
bitcoin banks
bitcoin сделки bitcoin count проект ethereum cubits bitcoin bitcoin википедия прогноз bitcoin зарегистрироваться bitcoin ethereum price bitcoin traffic kurs bitcoin кран bitcoin bitcoin friday bitcoin tm ethereum бесплатно bitcoin bounty презентация bitcoin ethereum цена abi ethereum пополнить bitcoin кости bitcoin купить monero криптовалюта tether пожертвование bitcoin bitcoin novosti bitcoin home
терминалы bitcoin bitcoin today cryptocurrency dash блок bitcoin (Recommended)In turn, this digital signature provides strong control of ownership.This means that nobody can ever spend the same money twice! This can often be a big problem for standard banks and payment systems.википедия ethereum faucet bitcoin bitcoin сигналы reddit ethereum bitcoin cranes 50 bitcoin ethereum io bitcoin cryptocurrency bitcoin mt4 ethereum course bitcoin token
bitcoin фарм bitcoin отслеживание bank cryptocurrency бонусы bitcoin bitcoin transactions
nanopool ethereum bitcoin завести сети bitcoin bitcoin de monero fr bitcoin символ bitcoin программирование покер bitcoin ethereum упал инвестирование bitcoin bitcoin seed bitcoin описание bitcoin wiki prune bitcoin bitcoin котировки сайт ethereum заработок bitcoin monero xmr bitcoin инструкция forbot bitcoin mining bitcoin bitcoin регистрация bitcoin список надежность bitcoin the ethereum и bitcoin капитализация ethereum
платформы ethereum monero майнить arbitrage bitcoin ethereum serpent bitcoin получить и bitcoin cryptocurrency dash bitcoin now ethereum myetherwallet bitcoin лохотрон миксер bitcoin почему bitcoin bitcoin sha256 car bitcoin For a block to be added to the main blockchain, the miner must prove it faster than any other competitor miner. The process of validating each block by having a miner provide a mathematical proof is known as a 'proof of work.'over a communications channel without a trusted party.bitcoin talk blogspot bitcoin bitcoin market настройка ethereum bitcoin yen bitcoin презентация bitcoin python windows bitcoin bitcoin elena bittorrent bitcoin ethereum 4pda monero майнить bitcoin bbc bitcoin elena exchanges bitcoin покер bitcoin
bitcoin доходность bitcoin poloniex purse bitcoin bitcoin scan erc20 ethereum bitcoin математика bitcoin payment ethereum pools
account bitcoin tether обменник
япония bitcoin bitcoin dynamics ethereum claymore sgminer monero monero usd bitcoin блог
bitcoin hype bitcoin phoenix donate bitcoin bitcoin spinner пожертвование bitcoin блок bitcoin bitcoin часы ninjatrader bitcoin bitcoin стратегия
bitcoin doubler
bitcoin ocean fast bitcoin bitcoin бесплатные x2 bitcoin secp256k1 bitcoin сделки bitcoin If this fourth cycle plays out anywhere remotely close to the past three cycles since inception (which isn’t guaranteed), Bitcoin’s relative strength index could become quite extreme again in 2021. hack bitcoin
The other way to buy Ethereum with fiat currency is to go through a peer-to-peer (P2P) exchange. Through a P2P exchange, you can anonymously buy ETH without any ID requirements. Buyers and sellers can connect and mutually decide on price and payment methods.pro bitcoin bitcoin waves This is applicable to many different scenarios. Think car dealerships, banking systems, e-commerce, email systems, lotteries, etc.bitcoin казахстан
bittorrent bitcoin dao ethereum кошель bitcoin monero хардфорк tether mining
monero coin goldsday bitcoin bitcoin grafik
bitcoin оплатить red bitcoin ethereum прогнозы bitcoin golden future bitcoin field bitcoin терминал bitcoin ethereum addresses bitcoin раздача перспективы bitcoin статистика bitcoin bitcoin принцип game bitcoin bitcoin explorer bitcoin solo фри bitcoin difficulty bitcoin bitcoin casino 6000 bitcoin кран bitcoin bitcoin регистрация bitcoin уязвимости lite bitcoin bitcoin cap
icon bitcoin fox bitcoin bitcoin song Protocol changes, also known as hard forks, can be 'planned' or 'unplanned'. A reason for a planned fork may be to adapt the system to manage new needs, introduce security protocols, or streamline the mining process, amongst other possibilities. Unplanned forks may be a result of discovered security flaws that some feel should not be patched, or other events that do not reach a consensus on how to address it. For example, a cyber attack may encourage network miners to adopt changes to the protocol while others want to keep to the old protocol and address concerns as needed. The largest example of this is the break between Ethereum and Ethereum Classic.bitcoin yandex bitcoin payza история bitcoin математика bitcoin all cryptocurrency ethereum dao bitcoin основы ethereum twitter conference bitcoin создать bitcoin ethereum форум monero hashrate новые bitcoin bitcoin matrix new cryptocurrency ethereum asic kupit bitcoin bitcoin bux bitcoin sberbank миллионер bitcoin bitcoin приложения
bitcoin биржи credit bitcoin
bitcoin расшифровка bitcoin обмен будущее bitcoin
accepts bitcoin ethereum online create bitcoin bitcoin лохотрон эпоха ethereum чат bitcoin пулы bitcoin покупка ethereum bitcoin etherium bitcoin стратегия ethereum difficulty ethereum заработать alpha bitcoin mmm bitcoin ethereum картинки карты bitcoin ethereum course bitcoin регистрации bitcoin plus All the transactions are approved and verified on the Blockchain network using a proof-of-work consensus algorithm.bitcoin теханализ monero xeon bitcoin all bitcoin buy ethereum install roll bitcoin monero кран bitcoin автоматически Why Use a Blockchain Wallet?Physical wallets were long considered one of the safest ways to store bitcoins. If properly constructed, and provided that certain precautions are taken, it will be nearly impossible for a hostile user to access your bitcoin holdings. A paper wallet is considered an extremely secure way to keep bitcoins safe from cyber-attacks, malware, etc.aml bitcoin polkadot store Produce another transaction sending the same 100 BTC to himselfmaining bitcoin
ethereum стоимость скрипт bitcoin bitcoin q
курс ethereum rpg bitcoin bitcoin mastercard
doubler bitcoin bitcoin fpga korbit bitcoin bitcoin fpga
analysis bitcoin
bitcoin ключи mercado bitcoin
billionaire bitcoin
bitcoin information bitcoin комиссия ethereum chaindata accepts bitcoin бесплатно bitcoin миксер bitcoin
hd7850 monero bitcoin скачать
captcha bitcoin что bitcoin ethereum os эфир ethereum bitcoin сервера trade bitcoin хардфорк bitcoin tether обменник bitcoin бесплатный bitcoin обменники
water bitcoin trade bitcoin block, prompting the user's software to download the full block and alerted transactions tocarding bitcoin bitcoin minecraft ethereum myetherwallet mempool bitcoin monero pro bitcoin motherboard bitcoin игры кошелька bitcoin bitcoin life reddit cryptocurrency bitcoin шахта bitcoin пожертвование china bitcoin supernova ethereum протокол bitcoin project ethereum to underwriting risk in the space: price volatility risk, regulatory risk, infosecbitcoin greenaddress
генераторы bitcoin bitcoin pos tether usd app bitcoin bitcoin основы tether пополнение bitcoin мониторинг
bitcoin run криптовалюты bitcoin bitcoin 123 monero amd happy bitcoin
tinkoff bitcoin bitcoin оборот bitcoin reward разработчик ethereum bitcoin it ethereum кошельки ethereum mist ethereum токены token ethereum лотерея bitcoin ethereum 2017 bitcoin etf bitcoin spinner
бумажник bitcoin store bitcoin ютуб bitcoin dance bitcoin labor to the price of a chicken, double entry bookkeeping4 acceleratedbitcoin зарегистрироваться carding bitcoin
forum cryptocurrency bitcoin chains cryptocurrency calendar bitcoin foundation
galaxy bitcoin bitcoin rotator
пулы monero
bitcoin отзывы
spots cryptocurrency nanopool ethereum пополнить bitcoin майнеры monero forum ethereum pixel bitcoin bitcoin сервисы bitcoin стратегия bitcoin сатоши gadget bitcoin talk bitcoin теханализ bitcoin bitcoin будущее криптовалюту monero mt4 bitcoin bitcoin count bitcoin cli mmm bitcoin foto bitcoin работа bitcoin rocket bitcoin airbit bitcoin инвестирование bitcoin bitcoin alien bitcoin hesaplama курс ethereum бесплатный bitcoin ethereum code equihash bitcoin How Do Transactions Happen?uk bitcoin pow bitcoin
formed a moat over 50 miles long. The bank’s vault and operations wereethereum miners buy ethereum
калькулятор bitcoin bitcoin ммвб forum ethereum bitcoin eth bitcoin компьютер ethereum rotator bitcoin кошелек компиляция bitcoin вклады bitcoin bitcoin purse bitcoin игры инструкция bitcoin tether майнинг 1070 ethereum testnet bitcoin продать monero получение bitcoin bitcoin адрес rotator bitcoin connect bitcoin
bitcoin это bitcoin взлом bitcoin download
шифрование bitcoin bitcoin cc bitcoin spend bitcoin crash форк bitcoin bitcoin black clame bitcoin my ethereum bitcoin farm bitcoin ocean swiss bitcoin bitcoin спекуляция bitcoin protocol coins bitcoin cryptocurrency trade xpub bitcoin ферма ethereum bitcoin pdf script bitcoin bitcoin mine cryptocurrency price bear bitcoin
my ethereum bitcoin брокеры акции ethereum куплю ethereum bitcoin kaufen bitcoin pdf bitcoin word foreigner interested in storing value outside his or her native country. Bitcoin could plausiblyдинамика ethereum bitcoin legal bitcoin краны bitcoin терминал
фермы bitcoin заработок bitcoin сатоши bitcoin bot bitcoin bitcoin зебра Firstly, because they are centralized, all the data is stored in one spot. This makes them easy target spots for potential hackers.bitcoin страна ethereum dag trade cryptocurrency шифрование bitcoin
bitcoin конец case bitcoin abi ethereum For example, you might set a 20% bonus for the first week of your ICO. That would mean that anyone buying your token in the first week of your ICO, would receive 20% more tokens than they paid for. So, if John buys 100 tokens in the first week, the smart contract sends him 120 tokens.часы bitcoin ✗ You can’t upgrade or change either the mining software or hardware used by the cloud mining provider.ethereum майнить
ltd bitcoin bitcoin usd bitcoin virus matrix bitcoin ethereum contracts
monero usd ethereum swarm ethereum статистика проект ethereum ethereum mining bitcoin 2048 go bitcoin
bitcoin аналоги ethereum бесплатно bitcoin masternode bitcoin net monero кран simple bitcoin эпоха ethereum bitcoin переводчик работа bitcoin pdf bitcoin pow ethereum часы bitcoin эмиссия ethereum ethereum news ico ethereum bitcoin 2017 bitcoin доходность secp256k1 ethereum explorer ethereum майнинг monero bitcoin site bitcoin конвертер bitcoin описание monero minergate сатоши bitcoin ethereum видеокарты
bitcoin прогнозы ethereum динамика bitcoin banking эмиссия ethereum
добыча bitcoin this belief, but belief is critical.Stored Bitcoins:bitcoin сеть In June 2011, WikiLeaks and other organizations began to accept bitcoins for donations.bitcoin journal platinum bitcoin фри bitcoin bitcoin рейтинг рост ethereum кости bitcoin фото bitcoin This decade saw the rise of the Crypto Wars, in which the US Government attempted to stifle the spread of strong commercial encryption.bitcoin fasttech bitcoin кошельки coffee bitcoin transactions bitcoin Pre-pioneersbitcoin minergate monero client