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.
bitcoin capital alien bitcoin bitcoin check bitcoin security With bitcoin, the goal of the protocol is to eliminate the possibility that the same bitcoin is used in separate transactions at the same time, in such a way that this would be difficult to detect.Identityмайнинга bitcoin bitfenix bitcoin 60 bitcoin iphone tether cryptocurrency gold ethereum прибыльность ethereum прогнозы bitmakler ethereum
проект ethereum
forbes bitcoin bitcoin alien обмен ethereum block bitcoin сколько bitcoin miner bitcoin bitcoin code биржа ethereum ethereum api bitcoin safe monero криптовалюта bitcoin курс hourly bitcoin bitcoin прогноз polkadot блог hashrate ethereum login bitcoin серфинг bitcoin 2x bitcoin accelerator bitcoin script bitcoin new protocols as potential Facebooks.bye bitcoin Like Bitcoin, Litecoin also uses a form of proof-of-work mining to enable anyone who dedicates computing hardware to add new blocks to its blockchain and earn the new Litecoin it creates.bitcoin валюта
free ethereum bitcoin easy captcha bitcoin bitcoin birds эфириум ethereum блоки bitcoin
uk bitcoin ethereum ico развод bitcoin генераторы bitcoin system bitcoin ethereum news bitcoin сети bitcoin group bitcoin node виджет bitcoin технология bitcoin alien bitcoin bitcoin world bitcoin 4096 secp256k1 ethereum bitcoin mail bitcoin блокчейн litecoin bitcoin bitcoin 99 bitcoin reserve bitcoin valet 4pda tether ethereum casper delphi bitcoin bitcoin greenaddress bitcoin получить importprivkey bitcoin ethereum ротаторы цены bitcoin bitcoin png bitcoin миллионеры bitcoin skrill monero продать bitcoin faucet падение ethereum принимаем bitcoin Step 1) Create a free account at a trustworthy exchange like MtGox.com or (mainly for Europeans) BitStamp.net.bitcoin игры bitcoin value bitcoin адреса bitcoin motherboard майнинг bitcoin
ltd bitcoin ico monero bitcoin казино bitcoin club взлом bitcoin bitcoin yandex вики bitcoin golden bitcoin bitcoin обучение bitcoin nodes production cryptocurrency bitcoin analytics bitcoin перевод bitcoin автоматически ethereum покупка difficulty bitcoin tether usb bitcoin fork
bitcoin инструкция pull bitcoin total cryptocurrency boxbit bitcoin ethereum contracts ethereum supernova взлом bitcoin контракты ethereum bitcoin anonymous
bitcoin onecoin opencart bitcoin monero spelunker bitcoin vpn алгоритм monero free bitcoin
bitcoin oil steam bitcoin
bitcoin background
course bitcoin сервисы bitcoin ethereum заработок эмиссия ethereum bitcoin лопнет сервисы bitcoin bitcoin расшифровка bitcoin map bitcoin flapper bitcoin pdf bitcoin мерчант bitcoin changer datadir bitcoin bitcoin работа
спекуляция bitcoin exchange bitcoin фри bitcoin bitcoin rus
alpari bitcoin количество bitcoin monero кран ethereum хешрейт polkadot cadaver moneypolo bitcoin ethereum телеграмм
bitcoin шифрование keys bitcoin bitcoin обменник таблица bitcoin byzantium ethereum gas ethereum bitcoin 1000 datadir bitcoin
ethereum io bitcoin форумы ann ethereum android tether bitcoin государство bitcoin talk
bitcoin лохотрон обвал ethereum
программа tether Profitability Before and After ASICwhat is cryptocurrencybitcoin магазины metatrader bitcoin bitcoin аналоги bitcoin account converter bitcoin bitcoin автокран bitcoin magazin monero proxy http bitcoin live bitcoin bitcoin список ethereum вики bitcoin страна monero настройка geth ethereum up bitcoin bitcoin boom bitcoin landing технология bitcoin bitcoin покупка bitcoin neteller vpn bitcoin шахты bitcoin mindgate bitcoin валюта tether accepts bitcoin bitcoin signals statistics bitcoin bitcoin group analysis bitcoin
buy bitcoin bitcoin facebook microsoft bitcoin After allegedly declaring bitcoin illegal, the Bank of Thailand issued a backtracking statement in 2014, clarifying that it is not legal tender (but not technically illegal), and warning of the risks.monero logo
бесплатно bitcoin market bitcoin kinolix bitcoin tether кошелек ethereum создатель bitcoin antminer bitcoin hd бесплатный bitcoin dance bitcoin ethereum pools ethereum проекты all cryptocurrency хешрейт ethereum bitcoin продам играть bitcoin donate bitcoin bitcoin генераторы games bitcoin trade cryptocurrency bitcoin investing yota tether ethereum studio серфинг bitcoin bitcoin school bitcoin sha256 fast bitcoin рост bitcoin bitcoin linux адрес bitcoin bitcoin japan приват24 bitcoin electrum bitcoin bitcoin wordpress bitcoin проверить bitcoin книга bitcoin сайты mikrotik bitcoin bitcoin сети bitcoin visa bitcoin сделки кран ethereum zona bitcoin bitcoin сколько bitcoin wordpress doubler bitcoin nonce bitcoin bitcoin location 22 bitcoin капитализация ethereum monero minergate daemon bitcoin rise cryptocurrency bitcoin ukraine bitcoin steam bitcoin вконтакте blog bitcoin bitcoin компания bitcoin core Now, all the other nodes on the network verify the transaction information in the new block. They check the whole blockchain to make sure that the new information matches. If it does, then the new block is valid, and the winning miner can add the new block to the blockchain. This is called confirmation.4pda tether
bitcoin dynamics
aliexpress bitcoin tether bootstrap bag bitcoin bitcoin майнинга monero курс bitcoin кошелька claymore monero bitcoin руб ethereum info bitcoin tx bitcoin signals cryptocurrency forum обменник monero bitcoin ukraine сайте bitcoin bitcoin sha256 сервисы bitcoin bitcoin ledger
Its PoW algorithm is Ethash, an algorithm that was initially designed to prevent ASIC mining. Block time has a target of - 15 seconds (with a maximum block size of 1,500,000 gas). Mining rewards are paid at a fixed rate of 2 ETH, which was reduced from 3 ETH after the Constantinople hardfork.ethereum game bitcoin roll bitcoin автосерфинг 4 bitcoin
криптовалюта tether bitcoin упал
invest bitcoin stellar cryptocurrency bitcoin компания bitcoin 4 bitcoin torrent bitcoin flex By NATHAN REIFFRussiacryptocurrency bitcoin get робот bitcoin faucet cryptocurrency bitcoin usd кости bitcoin bitcoin описание Roughly speaking, M1 (which includes M0) is currently worth about 4.9 trillion U.S. dollars, which will serve as our current worldwide value of mediums of exchange.19раздача bitcoin sgminer monero cryptocurrency dash mikrotik bitcoin теханализ bitcoin bitcoin pos bitcoin project bitcoin рбк ethereum dao get bitcoin адрес bitcoin transactions bitcoin bitcoin доходность fake bitcoin monero кошелек bitcoin c payable ethereum
bcn bitcoin monero ann bitcoin хабрахабр blogspot bitcoin bitcoin roll почему bitcoin
bitcoin com bitcoin вконтакте seed bitcoin
bio bitcoin bitcoin ферма linux bitcoin all bitcoin neteller bitcoin сша bitcoin bitcoin проблемы цена ethereum bitcoin armory торги bitcoin frontier ethereum
bitcoin tails trezor ethereum mikrotik bitcoin ethereum токены
wikileaks bitcoin ethereum кран Litecoin Blockchain Explorersакции ethereum ethereum телеграмм bitcoin usd ethereum сложность bitcoin сервера bitcoin indonesia bitcoin clouding mining monero валюта tether bitcoin lurkmore chain bitcoin bitcoin торговля production cryptocurrency bitcoin fun пузырь bitcoin bloomberg bitcoin статистика bitcoin
сайт ethereum ethereum майнеры ecdsa bitcoin bitcoin pdf ethereum описание bitcoin tails ethereum android
bitcoin сокращение cubits bitcoin spots cryptocurrency bitcoin invest
bitcoin api кошельки bitcoin ethereum developer
bitcoin traffic matteo monero
satoshi bitcoin monero калькулятор bitcoin spinner
9000 bitcoin bitcoin 2 reverse tether carding bitcoin microsoft bitcoin new cryptocurrency bitcoin exe polkadot ico stats ethereum
bitcoin scan london bitcoin trader bitcoin bitcoin click
monero криптовалюта шрифт bitcoin серфинг bitcoin blocks bitcoin рулетка bitcoin status bitcoin pool bitcoin bitcoin спекуляция bitcoin скачать bitcoin virus monero пулы курс monero This means that in projects where developer draw is high, diverse contributors improve the underlying system, building and testing client applications on a broad base of hardware and software platforms. This effectively increases hardware draw by expanding the pool of devices compatible with the network. Increased hardware draw expands the number of new software developers who can use the software without buying or modifying equipment. This virtuous cycle begins with developer draw.bitcoin pools курса ethereum кошелек monero
фермы bitcoin bitcoin com трейдинг bitcoin The official Ethereum clients are all open source – that is you can see the code behind them, and tweak them to make your own versions. The most popular clients are:bitcoin mail ubuntu ethereum antminer ethereum auto bitcoin film bitcoin
bitcoin obmen byzantium ethereum monero майнить bitcoin 100 dorks bitcoin forum ethereum tether gps eobot bitcoin
капитализация ethereum bitcoin life bitcoin multisig майнинг ethereum hosting bitcoin
компания bitcoin bitcoin script reddit cryptocurrency 10000 bitcoin bitcoin терминалы логотип ethereum
bitcoin скачать bitcoin 10 bitcoin 50 bitcoin компьютер bitcoin drip
ethereum calc rise cryptocurrency
bitcoin torrent bitcoin форк bitcoin masters bitcoin minecraft ethereum blockchain ethereum история cubits bitcoin bitcoin окупаемость future bitcoin анимация bitcoin ethereum torrent
ethereum torrent king bitcoin платформ ethereum connect bitcoin
short bitcoin bitcoin utopia fpga ethereum
bitcoin play genesis bitcoin bitcoin office bitcoin delphi bitcoin генератор trade cryptocurrency куплю ethereum cryptocurrency market bitcoin protocol tether addon cold bitcoin okpay bitcoin bitcoin plugin bitcoin картинки group bitcoin bitcoin бумажник ico cryptocurrency bitcoin ваучер live bitcoin ethereum explorer статистика ethereum магазин bitcoin bitcoin dollar
boom bitcoin tor bitcoin bitcoin миллионеры monero hardware виталик ethereum monero будущее ethereum россия bitcoin monero xmr bitcoin информация вывод bitcoin micro bitcoin ethereum eth bitcoin ira доходность ethereum bitcoin анимация moto bitcoin bitcoin steam
bitcoin puzzle bitcoin bear polkadot stingray takara bitcoin bitcoin pattern carding bitcoin ферма bitcoin apk tether bitcoin 9000 цена ethereum ethereum twitter bitcoin mail monero amd
bitcoin pools bitcoin take ethereum geth bitcoin cap dat bitcoin mt4 bitcoin bitcoin blog space bitcoin bitcoin pattern bitcoin mmgp ethereum перспективы bitcoin base bitcoin комиссия bitcoin plus проект bitcoin скачать bitcoin акции bitcoin продам bitcoin shot bitcoin обзор bitcoin fire bitcoin bitcoin продам bitcoin вывод bitcoin ann fx bitcoin
bitcoin аккаунт
bitcoin free space bitcoin график ethereum bitcoin dollar bitcoin jp новости bitcoin bitcoin зебра dollar bitcoin bitcoin home bitcoin red bitcoin main 4000 bitcoin bitcoin green ethereum classic monero dwarfpool ethereum microsoft пример bitcoin ethereum contracts цена ethereum системе bitcoin tether tools bitcoin reward криптовалюта tether casino bitcoin
coin bitcoin
новости bitcoin connect bitcoin ethereum pools сатоши bitcoin mindgate bitcoin
bitcoin instagram bitcoin расчет
бесплатный bitcoin bitcoin crash bitcoin обозреватель testnet bitcoin ethereum стоимость bitcoin зарегистрироваться bitcoin keys car bitcoin bitcoin simple bitcoin telegram bitcoin софт bitcoin xl sell ethereum money bitcoin ads bitcoin ethereum эфириум bitcoin trader coinder bitcoin arbitrage bitcoin кошельки bitcoin bitcoin flapper bitcoin get ethereum coins bitcoin global monero hardware apple bitcoin bitcoin бесплатно programming bitcoin ethereum описание multibit bitcoin polkadot блог bitcoin биржа bitcoin euro Holding long term, also known as HODL (Holding On for Dear Life), does not allow you to take advantage of the crypto market’s volatility and make short-term profits.Deterministic walletвзлом bitcoin
etoro bitcoin playstation bitcoin metropolis ethereum tether tools биржа bitcoin spend bitcoin сбербанк ethereum ethereum russia казино ethereum bitcoin видеокарта скрипты bitcoin bitcoin poker bitcoin scrypt bitcoin шифрование bitcoin доходность
lamborghini bitcoin вложения bitcoin bitcoin alliance bitcoin hd ubuntu bitcoin calculator ethereum форк bitcoin ethereum contracts secp256k1 ethereum bitcoin запрет time bitcoin ethereum farm bitcoin roll
bitcoin сатоши bitcoin минфин rate bitcoin
bitcoin exchanges bitcoin film bitcoin wmx bitcoin кредиты safe bitcoin rotator bitcoin
cronox bitcoin While bitcoin transaction confirmations may take many minutes and may be associated with high transaction costs, XRP transactions are confirmed within seconds at very low costs4 5 2 BTC has a total supply of almost 21 million cryptocoins, and XRP has a total of 100 billion pre-mined cryptocoins.13 14fire bitcoin bitcoin сделки bitcoin инвестиции bitcoin разделился настройка ethereum ethereum investing бесплатный bitcoin bitcoin fee gadget bitcoin ethereum стоимость краны monero ethereum swarm bitcoin future unconfirmed monero bitcoin book flappy bitcoin cryptocurrency trading
tether кошелек bitcoin kazanma wallpaper bitcoin bitcoin hardfork dogecoin bitcoin ethereum алгоритм сайты bitcoin index bitcoin monaco cryptocurrency ethereum картинки bitcoin generate фонд ethereum карты bitcoin ethereum хардфорк ethereum 1070 sell ethereum mt5 bitcoin
пополнить bitcoin bitcoin advcash ethereum chaindata ethereum linux
bitcoin ммвб monero hashrate bitcoin location Bitcoin was the first cryptocurrency to use blockchain technology. It was invented by the person, or group of people, that go by the name of Satoshi Nakamoto (strangely enough, nobody knows who Satoshi Nakamoto is).clicker bitcoin bitcoin hd cryptocurrency calendar рост bitcoin ethereum org bitcoin работа currency bitcoin bitcoin сегодня bitcoin advcash x2 bitcoin bitcoin обзор bitcoin 0 bitcoin graph bitcoin хабрахабр
flappy bitcoin bitcoin grant bitcoin капитализация bitcoin рублях
bitcoin обозреватель lavkalavka bitcoin utxo bitcoin bitcoin оборудование bitcoin visa bitcoin ads 1 ethereum sgminer monero заработать monero bitcoin сложность bitcoin visa waves bitcoin курс monero добыча bitcoin blockchain ethereum отзыв bitcoin
linux ethereum kurs bitcoin
bitcoin desk programming bitcoin майнить monero monaco cryptocurrency ethereum blockchain tether перевод bitcoin capitalization geth ethereum
ethereum chart bitcoin s bitcoin reindex bitcoin команды bitcoin fake cubits bitcoin bitcoin millionaire maps bitcoin bitcoin xpub bitcoin usb bitcoin buy партнерка bitcoin multiply bitcoin
bitcoin farm bitcoin genesis проверка bitcoin ethereum usd bitcoin world
ethereum stats This means you’re not only competing with every other solo miner on the planet, but you’re also competing with every pool, too. Even if you have more computing power than every single miner in every pool, do you have more than the entire pool combined? Probably (definitely) not!bitcoin ставки machine bitcoin bitcoin 2018 service bitcoin инвестирование bitcoin
50 bitcoin теханализ bitcoin bitcoin описание фермы bitcoin reddit bitcoin
bitcoin настройка bitcoin services dance bitcoin bitcoin maps bitcoin weekly casinos bitcoin bitcoin cache bitcoin биржа hashrate bitcoin dwarfpool monero
bitcoin server flypool ethereum mac bitcoin
bitcoin half
avto bitcoin preev bitcoin bitcoin скрипт bitcoin nvidia air bitcoin Bitcoin developer Matt Corallo also wrote about the importance of this property:bitcoin курс 6000 bitcoin
The 'Explain It Like I'm Five' Versionсмесители bitcoin hosting bitcoin monero майнить bitcoin poker
рынок bitcoin bitcoin 2x matrix bitcoin uk bitcoin bitcoin парад арбитраж bitcoin agario bitcoin moto bitcoin bitcoin login ethereum прибыльность agario bitcoin bitcoin china bittorrent bitcoin bitcoin conveyor