Following the path of bitcoin in its early days, Litecoin was the first crypto to tweak its predecessor’s formula. The central idea behind the launch of Litecoin was to incorporate miner-friendly crypto.
Developed in 2011 by Charlie Lee, a former Google employee, Litecoin generates new blocks in only 2.5 minutes, which is 4x faster than bitcoin.
There are various reasons why this cryptocurrency may dominate the market. Find them below.
5 Features of Litecoin
Litecoin uses the Scrypt algorithm. This is a memory-intensive algorithm made to caution ASICs and GPUs. The primary goal behind the adoption of this algorithm was to make this crypto network easily accessible. Since individuals are the most significant advocate of Litecoin, it is crucial that they initially mine this coin with their CPUs. This also prevents big miners from swapping their profits.
As of now, Litecoin features in the list of top 25 cryptocurrencies with regard to market cap. At the time of writing, Litecoin has a market cap around $7-8 billion.
Despite almost halving in May 2021, these tokens still represent a capacity to double-up for investors that are seeking coins showing stability. As of September 2021, around 3,070 merchants accept Litecoin for payments. That is a substantial figure. In fact, this growing adoption of Litecoin among merchants makes it a favourable option for investors looking to invest in cryptos featuring real-world use cases.
Litecoin’s widely accepted adoptions are a positive sign for many investors across the world. A continuation of this trend will boost its market capitalisation in the coming times.
Various investors, whether newbies or experienced, are going after volatile cryptos lately. Just like all cryptos, this one also has a high risk reward ratio.
The race to upgradation in cryptocurrencies is interesting. Developers in various networks are constantly finding ways to increase their network’s value. The key things developers are going after are lowering costs, boosting transaction speed, and increasing sustainability.
Litecoin is making head starts on these fronts. For example, the foundation recently reported the rollout of ‘OmniLite’, which is a decentralised platform for token creation. It is a layered protocol over Litecoin’s blockchain. This benefits from the coin’s low fees and commendable security.
Through this innovation, individuals will be able to mint stable coins depending on its blockchain. Accordingly, developers anticipate even lower fees and faster processing speed with the launch of this system.
The key developer in the case of Litecoin is the former Google and Coinbase engineer, Charlie Lee. He has assembled a team of developers who constantly work on improving Litecoin’s performance and network.
With certain developments, Litecoin now allows Atomic Swamps. This is the exchange of one crypto with other across blockchains. It also has Lightning Network, which is basically a 2nd layer technology channel that enables efficient and faster transactions.
Litecoin was the first crypto to add a Segregated Witness Upgrade, manifesting its desire to focus more on the future.