Litecoin Vs. Bitcoin: The Key Differences
One of the most popular trends in the market today have a lot to do with cryptocurrency. A lot of people have been enthralled in to investing in this new type of currency, with a unique feature being security through encryption, as well as having a decentralized feature, sparing you time as you don’t have to go to a bank for transactions to take place. There currently are 2 popular cryptocurrencies, namely litecoin and bitcoin. Litecoin to paypal, as well as Bitcoin to Paypal transactions are popular, as a lot of people have already earned money for themselves in the process. If you want to know what the differences are, here are some of these in certain aspects.
In terms of number of coins that can be accommodated, Litecoin is capable of handling more, at 84 million, with the Bitcoin network only accommodating a quarter of that amount. While this may seem like a huge difference, the reality is that a lot of transactions happening in cryptocurrencies could cost less than 1 bitcoin, and hence it can be divided almost infinitesimally. The advantage of Litecoin has to do with a psychological aspect of things, given that some people may want to transact in whole rather than fractional units.
The decentralization and encryption can be achieved through effective algorithms. They both require computing power, and both encryption algorithms need heavy work to maintain. This is where the difference between both currencies lie, as Bitcoin makes use of SHA-256, which is generally more complex than what Litecoin uses, which is the relatively new Scrypt. Litecoin’s concept of mining that is easily accessible is something that can be countered by other hardware that is used by SHA-256, which includes the ASICs, or Application-Specific Integrated Circuits.