What is mining litecoins

By | 01.01.2018
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Litecoin (LTC or ł) is a peer-to-peer cryptocurrency and open source software project released under the MIT/X11 license. Creation and transfer of coins is based on an open source cryptographic protocol and is not managed by any central authority. Litecoin mining is much, much different than it used to be. At the time of writing, Litecoin is about $32. In its early days, Litecoin was very easy to mine because. How to mine for Litecoin. The main incentive is that the miner that verifies the first block will be rewarded with 50 Litecoins and will be reduced with time and will.
Learn how to mine litecoin with this beginners guide, including how to use minerd and cgminer with your CPU and GPU. Mining differences. Just like bitcoin, litecoin is a crytocurrency that is generated by mining. Litecoin was created in October 2011 by former Google engineer Charles. Litecoin (LTC or ł) is a peer-to-peer cryptocurrency and open source software project released under the MIT/X11 license. Creation and transfer of coins is based on an open source cryptographic protocol and is not managed by any central authority. Litecoin mining is much, much different than it used to be. At the time of writing, Litecoin is about $32. In its early days, Litecoin was very easy to mine because. How to mine for Litecoin. The main incentive is that the miner that verifies the first block will be rewarded with 50 Litecoins and will be reduced with time and will.


Litecoin (LTC or Ł[1]) is a peer-to-peercryptocurrency and open source software project released under the MIT/X11 license.[2] Creation and transfer of coins is based on an open sourcecryptographic protocol and is not managed by any central authority.[2][3] The coin was inspired by, and in technical details is nearly identical to, Bitcoin (BTC).

History[edit]

Litecoin was released via an open-sourceclient on GitHub on October 7, 2011 by Charlie Lee, a former Google employee.[4] The Litecoin network went live on October 13, 2011.[5] It was what is mining litecoins fork of the Bitcoin Core client, differing primarily by having a decreased block generation time (2.5 minutes), increased maximum number of coins, what is mining litecoins hashing algorithm (scrypt, instead of SHA-256), and a slightly modified GUI.[6]

During the month of November 2013, the aggregate value of Litecoin experienced massive growth which included a 100% leap within 24 hours.[7]

Litecoin reached a $1 billion market capitalization in November 2013.[8] By late November 2017, its market capitalization was US$4,600,081,733 ($85.18 per coin).[9][10] By mid-December 2017, the coin's marketcap had reached US$20,000,000,000 and each litecoin was valued at approximately US$371.00.

In May 2017, Litecoin became the first of the top 5 (by market cap) cryptocurrencies to adopt Segregated Witness.[11] Later in May of the same year, the first Lightning Network transaction was completed through Litecoin, transferring 0.00000001 LTC from Zürich to San Francisco in under one second.[12]

Differences from Bitcoin[edit]

Litecoin is different in some ways from Bitcoin.

  • The Litecoin Network aims to process a block every 2.5 minutes, rather than Bitcoin's 10 minutes. The developers claim that this allows Litecoin to have faster transaction confirmation.[2][13]
  • Litecoin uses scrypt in its proof-of-work algorithm, a sequential memory-hard function requiring asymptotically more memory than an algorithm which is not memory-hard.[14]

Due to Litecoin's use of the scrypt algorithm, FPGA and ASIC devices made for mining Litecoin are more complicated to create and more expensive to produce than they are for Bitcoin, which uses SHA-256.[15]

See also[edit]

References[edit]

  1. ^"Litecoin charts". ltc-charts.com. Archived from the original on 2014-01-18. Retrieved 2014-01-19. 
  2. ^ abc"Litecoin.org". litecoin.org. Retrieved 2014-01-19. 
  3. ^Satoshi, Nakamoto. "Bitcoin: A Peer-to-Peer Electronic Cash System"(PDF). Bitcoin.org. Retrieved 24 April 2013. 
  4. ^"Ex-Googler Gives the World a Better Bitcoin". WIRED. Retrieved 2017-10-25. 
  5. ^"When should Litecoin be launched?". bitcointalk.org. 
  6. ^"Block hashing algorithm". 
  7. ^Charlton, Alistair (2013-11-28). "Litecoin value leaps 100% in a day as market cap passes $1bn". International Business Times, UK Edition. Retrieved 2013-12-16. 
  8. ^Cohen, Reuven (2013-11-28). "Crypto-currency bubble continues: Litecoin surpasses billion dollar market capitalization". Forbes. Retrieved 2014-01-19. 
  9. ^"Litecoin (LTC) price, charts, market cap, and other metrics - CoinMarketCap", what is mining litecoins. coinmarketcap.com. 
  10. ^"Litecoin Charts - Litecoin Cryptocurrency Underground mining training Explorer", what is mining litecoins. Retrieved 2017-11-26. 
  11. ^Blockstream [@Blockstream] (10 May 2017). "Blockstream's Christian Decker @Snyke completes first Lightning network payment on Litecoin. See. Blog post soon!" (Tweet) – via Twitter. 
  12. ^Russell, Rusty. "Lightning on Litecoin", what is mining litecoins. Blockstream. Retrieved 12 May 2017. 
  13. ^Steadman, Ian (2013-05-11). "Wary of Bitcoin? A guide to some other cryptocurrencies". Ars Technica. Retrieved 2014-01-19. 
  14. ^Percival, Colin. "Stronger key derivation via sequential memory-hard functions"(PDF). Self-published. Retrieved 2013-04-24. 
  15. ^Coventry, Alex (2012-04-25). "Nooshare: A decentralized ledger of shared computational resources"(PDF). Self-published. Retrieved 2012-09-21.  

External links[edit]

Wikimedia Commons has media related to Litecoin.
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What is Litecoin? Litecoin vs Bitcoin, Which Wins?

How to mine for Litecoin. The main incentive is that the miner that verifies the first block will be rewarded with 50 Litecoins and will be reduced with time and will. The litecoin mining algorithm is also said to be simpler than that of bitcoin, and as a result, litecoin can be mined on computers with less power — and uses less overall energy. Since there is a shortage of graphic cards and the need for these cards is increasing, this is an advantage to those who are considering mining. Litecoin is a peer-to-peer Internet currency that enables instant, near-zero cost payments to anyone in the world. Litecoin is an open source, global payment network that is fully decentralized without any central authorities. Mathematics secures the network and empowers individuals to control their own finances.

Learn how to mine litecoin with this beginners guide, including how to use minerd and cgminer with your CPU and GPU. Litecoin is a peer-to-peer Internet currency that enables instant, near-zero cost payments to anyone in the world. Litecoin is an open source, global payment network that is fully decentralized without any central authorities. Mathematics secures the network and empowers individuals to control their own finances. The Litecoin mining industry is less developed than Bitcoin’s. ASICs—powerful computers designed to solve Bitcoin’s proof of work function—are available for litecoin but difficult to purchase. Because Litecoin uses a different proof .


What Is Litecoin?

Litecoin is capturing the attention of cryptocurrency enthusiasts, with the price of an LTC surging to $64 in August 2017 as the crypto market topped out at $175 billion. This resurgence of the digital currency came at a time when its community moved to activate Segregated Witness — also known as SegWit — which is a scaling solution that opens up new features including smart contracts which will make the litecoin blockchain more dynamic. Before we get in to the technical aspects of one of the most popular cryptocurrencies, let’s discuss what litecoin is and how does it differ from other popular cryptocurrencies such as bitcoin?

Litecoin is a peer-to-peer cryptocurrency that creates and transfers coins based on an open-source cryptographic protocol. The currency is inspired by the popular cryptocurrency bitcoin, but litecoin was created to make improvements on that currency such as improving the time it takes to verify a transaction on the blockchain.

This altcoin isn’t new (its launch dates back to 2011), but it’s quickly capturing interest, overtaking the No. 4 cryptocurrency spot only a few months ago. Here is a quick guide to better understanding litecoin and what its future holds.

History of Litecoin: A Quick Primer

Litecoin is often compared to bitcoin, which was launched by Satoshi Nakamoto in 2009. Nakamoto is rumored to be a group of people rather than a single person, first publishing a research paper called “Bitcoin: A Peer-to-Peer Electronic Cash System” and launching bitcoin shortly after its publication. At this point, many people were taking notice of the cryptocurrency, which used a peer-to-peer network to prevent double-spending, and would be completely decentralized — with no server or central authority. One such person taking notice was Charlie Lee, a graduate of MIT and former employee of Microsoft and Google.

Lee not only followed bitcoin, but used the cryptocurrency and learned more about the ideas behind the technology. He started to see new ways in which this currency could be improved, which inspired him to create his own cryptocurrency, one that would allow him to improve these fundamental areas.

With the launch of litecoin in 2011, people found that one key area was much different from bitcoins: the speed. Mining Litecoin and Litecoin transactions occur at a much quicker rate than that at Bitcoin, which is seen as an advantage. Many of the fundamentals were similar to those of bitcoin, but Lee took a different approach with the “proof of work” algorithm. He used Scrypt rather than the widely used SHA-256 — a choice that would serve as the linchpin for many important differences.

This is a quick history of litecoin, but let’s talk more about how litecoins work and why people favor them over other cryptocurrencies. The price of Litecoin is lower than that of bitcoins when compared in USD, but there are still key differences that make this currency an attractive option for those interested in mining.

Key takeaway. Litecoin is similar to bitcoin and was inspired by the currency; however, there are key differences between litecoin and bitcoin that make litecoin worth investigating for those interested in cryptocurrencies and mining.

What Are Litecoins?

The operation of litecoin is similar to that of other cryptocurrencies in a few key areas. Litecoins are not issued by the government and are not regulated by the Federal Reserve. There is a maximum number of litecoins available, and once those flow into the system via mining, there will never be another new LTC generated.

This is very different from fiat currencies, for which it’s possible to print additional currency, creating widespread potential impacts and affecting the value of money that is currently in circulation.

Litecoins are released during the mining process, at which time transactions are verified and added to a public ledger. This public ledger is known as a “block chain.” When this task is complete, the miner (or mining group, if a group of individuals work together) is awarded 25 litecoins. Litecoin’s block mining reward halves every 840,000 blocks, so the next time it halves, recipients will receive 12.5 coins per block. As a result, as time goes on, it gets more difficult to receive coins.

Unlike with fiat currencies, the security of litecoins is robust and it’s virtually impossible to mine the same coin twice. For example, let’s say that somebody tries to mine the same coin twice. The activity would be detected immediately by another miner, and it would be impossible for the fraudulent action to take place.

As a result, cryptocurrencies such as litecoin make it nearly impossible to “game the system” or create counterfeit currency. This security element is attractive to those interested in litecoin, because they feel that the value of their currency is safe from this type of threat.

Key takeaway. Litecoin is not radically different from other types of cryptocurrencies. The conversion of litecoins to fiat currencies does result in a lower value than bitcoins, but since you can generate blocks faster and it’s easier to get started, it’s worth a look, especially for those new to the mining of cryptocurrencies.

Where Can I Find Litecoins?

If you haven’t used cryptocurrencies in the past, you may wonder how to acquire this type of coin. Is there a place where you can exchange your local currency for LTC? One method for acquiring LTC is to earn them through mining (more on this in a minute). Alternatively, you can purchase coins through an exchange.

The challenge with litecoins, however, is that very few exchanges will sell litecoins directly, so you need to implement a workaround. The easiest method is to exchange your local currency for bitcoins. At this point, it’s easy to exchange the bitcoins for litecoins — and then add them to your digital wallet. The process should be fast, taking only minutes. But let’s say that you don’t want to purchase litecoins, but instead you want to earn them through mining. Where should you start?

Key takeaway. There are two major ways to acquire litecoins. The first is to purchase them, and the second is to mine them. If you’re up for Litecoin mining, this can offer valuable payoffs, but if you’re just wanting to get some experience with cryptocurrency or diversify your current holdings, opt for purchase.

Mining: A Quick Guide

When litecoin first started, miners earned 50 coins when they verified a block. Since this number halves every 840,000 blocks, that reward today is 25, but the reward is still worthwhile. In fact, the halving of litecoin occurs less frequently than the halving of bitcoins, which occurs every 210,000 blocks. Because of many of the improvements that Lee made, mining for litecoin is also said to be easier than mining for other cryptocurrencies.

Litecoin and bitcoin use a “proof of work” concept. This is basically an algorithm that verifies work. However, when Lee invented litecoin, he decided to use a totally different algorithm. Bitcoin uses an SHA-256 hashing algorithm, which favors systems that have the largest processing power during mining.

Litecoin is designed using the Scrypt algorithm, which takes a different approach and favors systems with the largest amount of random access memory for mining. Requiring large amounts of memory is said to make it costly to perform large-scale customer hardware attacks, making this type of attack less likely.

The litecoin mining algorithm is also said to be simpler than that of bitcoin, and as a result, litecoin can be mined on computers with less power — and uses less overall energy. Since there is a shortage of graphic cards and the need for these cards is increasing, this is an advantage to those who are considering mining.

It also is much faster to verify a block with litecoin than with bitcoin. In fact, the amount of time it takes is reduced to only 2.5 minutes, compared with 10 minutes required for bitcoins. As a result, transactions for litecoins are said to be four times faster than transactions for bitcoins.

Key takeaway. The reward is still great for those interested in mining litecoin. There are still many blocks yet to be discovered, and halving occurs less frequently than with bitcoin. The proof of work algorithm is also different, and is designed in such a way that it’s possible to use a personal computer and join a mining pool to get started quickly with this cryptocurrency.

Advantages of Litecoin Over Bitcoin

Those interested in cryptocurrency may want to better understand the advantages that litecoin offers over bitcoin so they can determine whether this cryptocurrency is right for their situation. Litecoin presents a viable alternative to bitcoin for a few major reasons. Here are a few important points to consider when making the decision.

The benefit of speed. As mentioned previously, litecoin produces blocks for its block chain at a rate that is faster than that of bitcoin. Litecoin takes only 2.5 minutes to complete a block, and bitcoin takes 10 minutes. Speed provides an advantage when miners are evaluating utility and the number of blocks created within a certain time frame.

A simpler algorithm. A simpler algorithm means that litecoin cuts back on the frustration and learning curve when miners are starting out mining. There is still a learning curve, but it’s a shorter one.

A stable, cohesive community. The litecoin community is said to be cohesive, whereas widespread disagreement is reported in some other cryptocurrency communities, which makes it difficult to find common ground.

Minimal transaction fees. The transaction fee when using litecoin is smaller than that of other cryptocurrencies, including bitcoin, which means that the cost of using LTC is greatly reduced.

Better features. One notable benefit of litecoin is that it has more features than its bitcoin rival, and includes four times the transaction capability as bitcoin.

Room for growth. The value of litecoin has experienced some impressive spikes; for example, during August 2017 the cryptocurrency reached $64, which was a 36 percent increase during a single week. In fact, litecoin’s value increased whereas bitcoin remained static over time.

Key takeaway. There are clear advantages of mining litecoin, and one of them is that litecoin is easier to get set up and running. The value of bitcoin may be much higher than the value of litecoin, but litecoin is positioned well for future growth, and it’s hypothetically possible to use a personal computer, join a group, and get set up in just an afternoon.

A Few Last Words

Litecoin is not a brand-new cryptocurrency. In fact, it was created only a couple years after bitcoin. Lower transaction fees, faster transaction times, and an escalating value make an interesting case for a litecoin investment as people learn more about this widely talked about — but surprisingly established —cryptocurrency.

The recent growth of litecoin’s value is inspiring many to take another look at the cryptocurrency market and ask, “Bitcoin may be No. 1, but what other opportunities exist?”

Over the past decade, many new cryptocurrencies have come to market, and not all of them have survived. Litecoin is an interesting option because not only is it growing, but it also has established and proven its relevance by sticking around while others have died out.

As with any new investment, the best approach is always to take it slow and to act carefully and deliberately. Test the cryptocurrency — through either purchase via exchange or mining — and measure your results. And through this testing, you’ll better understand the benefits and whether litecoin provides worthwhile and long-term payoffs for you.

What Is Genesis Mining? Genesis Mining offers you a smart and easy way to invest your money. Our solution is suitable for those who are new to the world of cryptocurrencies, as well as for cryptocurrency experts and large-scale investors. Genesis Mining is the world’s first large-scale multi-algorithm cloud-mining service, offering an alternative to those who would like to engage in bitcoin and altcoin mining.

For more information, visit us at www.genesis-mining.com today.

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