Despite bitcoin’s relative youth at just under 10 years old, its fervent popularity has spawned a cryptocurrency revolution and several competitors. An influx of new money from retail investors and institutional entities means these alternative cryptocurrencies, or “altcoins,” are under new scrutiny as traders look to diversify away from bitcoin. One of the most prominent among them is litecoinin terms of mass appeal, market capitalization, and adoption potential.
The origins of Litecoin
Litecoin was launched in the shadow of bitcoin, but was inspired by ‘real currency’, particularly its decentralized approach to currency. Litecoin founder Charlie Lee is a former Google employee and director of engineering at Coinbase, one of the largest exchanges and the first to list Litecoin alongside bitcoin and Ethereum. Although many see Litecoin as a clone of bitcoin, it has technical differences that separate them in the eyes of many. It is largely these differences that inform Litecoin’s price along with the favorable image it holds with merchants and businesses alike.
Made in the image of bitcoin in its early days, Litecoin was one of the first to take its predecessor’s formula and tweak it. The first change relates to Litecoin block chain, which uses the Scrypt protocol instead of SHA256. While this matters little to merchants, miners using hardware to run the bitcoin network cannot switch to Litecoin. This keeps the larger mining pools away from Litecoin because they cannot easily optimize their profits by switching to another coin, which makes for a more decentralized experience. Litecoin also has larger blocks and more coins in circulation, making it more affordable and faster to transact. Litecoin has naturally enjoyed a growing rate of adoption within cryptocurrency services and also in the retail market which is matched by its distinctive advantages.
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Litecoin gains momentum
Litecoin’s most prominent feature is also the one that gives it the most disruption potential and inspires a lot of trust within the cryptocurrency community. As soon as Segregated Witness was launched as a blockchain upgrade proposal to enable faster off-chain transactions, Litecoin threw its weight behind the proposal and was the first to integrate it. SegWit will allow Litecoin and other adopters to use the Lightning Network, which is nearing completion, allowing participants to trade cryptocurrencies at virtually no cost.
Developers are making rapid progress on the Lightning Network, and it recently passed almost all of the QA tests required to be released to the public. in a recent drillan alpha version was used to buy coffee at Starbucks without commissions: a difficult result to obtain with any other payment solution.
Cryptocurrency enthusiasts with plenty of coins to explore have increasingly singled out Litecoin for its speed. In tests where a user compared the speed of coins being transferred from an exchange to a hardware wallet like Trezor, Litecoin fared better, transferring 23 coins in less than 10 seconds. Companies paying attention to Litecoin’s rapid advances on the payment front are also increasingly adopting it in their own ecosystems.
The ease of transacting with Litecoin makes e-commerce one of the most suitable environments for adoption, and stores like BTCTrip, Bitify, AllThingsLuxury, and Bitcoin.shop (among others) have jumped on board. Even the popular e-commerce retail giant Overstock.com is now accepting Litecoin as a form of payment. People can easily pay for gifts, holidays, home appliances, and even precious metals and gems with their Litecoin. While retail adoption is encouraging, cryptocurrencies, merchants, exchanges, wallets, and other infrastructures are also integrating Litecoin in increasing numbers.
How the participants see it
Ultimately, the success of any cryptocurrency is a function of its applicability and the problems it solves. Although traders may not fully understand the differences between Litecoin and bitcoin DNA, they are moving more and more to Litecoin, regardless. All they see is how prices behave relative to other currencies. Litecoin is just as accessible as bitcoin in this regard because it has been a centerpiece in the market for almost as long, which means that any service that leaves Litecoin out of the equation ultimately limits its own audience and appeal.
In addition to the obvious advantages from a design perspective and commercial appeal, the participants themselves benefit from the ecosystem thanks to the growing adoption in e-commerce. As one of the top cryptocurrencies, Litecoin is quickly becoming a contender for the top three spots, including as a funding tool. Bankexa unique platform designed to validate and tokenize more illiquid assets like real estate and venture capital portfolios, accepts Litecoin alongside bitcoin and Ethereum during its token sale.
Platforms like Bankex almost unanimously accept Litecoin because many customers will exchange their other cryptocurrencies for Litecoin before a transaction. Until the Lightning Network levels the playing field, investors who want to participate in Bankex’s plethora of autonomously evaluated smart assets may prefer to fund the ICO with Litecoin to save on fees.
Although Ethereum still takes the cake in the fundraising sphere due to ERC20, Litecoin will likely make it to one of the top three spots on Bankex’s token sale list due to its ever-increasing appeal and lower transfer costs. affordable. Between the high demand as an asset and as a currency, it behaves like a hybrid with a much greater potential longevity than its older brother.
Litecoin’s drama-free community and even level give it less volatility and a consistent trend, making it ideal for arbitrage, trading, spending, or even fundraising. Savvy cryptocurrency enthusiasts have compared the market capitalization of bitcoin to Litecoin and done the math based on its maximum number of coins and other characteristics and almost unanimously declared that it is undervalued. Still, with the great progress being made on the Lightning Network, Litecoin may one day evolve into the truest form of cryptocurrency yet, leaving the others in the dust.