Buy Litecoin

Litecoin is a cryptocurrency that was launched in 2011 as one of the first altcoins. This cryptocurrency, which was conceived as a “silver” counterpart to Bitcoin’s “gold”, uses blockchain technology for decentralized transaction processing and storage. Like Bitcoin, Litecoin’s network uses a Proof-of-Work (PoW) consensus mechanism where miners verify and record transactions. Each miner maintains a copy of the blockchain to ensure the consistency of transaction data and the security of the network.

The basis of the Litecoin blockchain is a copy of Bitcoin's blockchain. This is possible because the blockchain is an open-source technology. Litecoin's blockchain did undergo several adjustments, which means that both blockchains differ from each other both technically and fundamentally.

Because a Litecoin block is mined in 2.5 minutes, users can transact faster than on Bitcoin, which takes 10 minutes. Additionally, Litecoin has a larger coin supply with a maximum of 84 million coins compared to Bitcoin’s 21 million coins.

Who is the inventor of Litecoin?

Charlie Lee, a graduate of the Massachusetts Institute of Technology and former Google engineer, invented Litecoin. Inspired by Bitcoin, Lee created Litecoin as an alternative to Bitcoin. His goal was to create a cryptocurrency and blockchain with faster transactions and fairer mining. Lee did this by combining the best features of Bitcoin and other existing cryptocurrencies.

Litecoin started out as a side project for Lee, but it quickly grew into a major player in the crypto space. Lee is currently the director of the Litecoin Foundation and continues to work hard to develop and support Litecoin.

Litecoin is often used to pay for goods and services thanks to its reliability and security. Most cryptocurrency payment processors support Litecoin. Due to its low transaction fees, Litecoin can also be used to transfer funds between different exchanges or wallets.

The limited supply and price volatility allows for speculation on price movements, making Litecoin an attractive option for investors and traders.

The Litecoin blockchain consists of a network of miners who each have a copy of the blockchain to ensure the consistency of the transaction history. This also ensures the security of Litecoin. The blockchain uses a Proof-of-Work consensus mechanism, where miners use computing power to add new blocks to the blockchain. In return for this contribution, miners receive new Litecoin as a reward. This mechanism secures the network and ensures that all transactions are correct and immutable.

The hashing algorithm and hashrate

Litecoin uses the Scrypt hashing algorithm, which is less complex than most other hashing algorithms. This algorithm converts data into unique, compact code for security and verification. It is designed to prevent major attacks on the miners, making mining much more enjoyable and accessible.

The hashing algorithm and also the hashrate both play an important role in the security of the Litecoin blockchain. The hashrate indicates the total computing power of the network and is never the same. A higher hashrate means better security, because it becomes more difficult for an attacker to gain control over the network.

SegWit and Lightning Network

Litecoin was one of the first cryptocurrencies to implement Segregated Witness (SegWit) technology. SegWit helps scale the blockchain by separating the digital signature of transactions, resulting in a more efficient use of space on the blockchain.

SegWit has also paved the way for the implementation of the Lightning Network on Litecoin. The Lightning Network is a layer 2 payment protocol that runs on the Litecoin blockchain. It allows users to transact faster with minimal fees outside of the main blockchain, which greatly improves the scalability of Litecoin.

Litecoin halving

The Litecoin halving is an important process that occurs approximately every four years. During this event, the reward for mining a new block is halved. This reduction in Litecoin's mining rewards helps to limit Litecoin's inflation by slowing down the rate at which new coins are created.

The first Litecoin halving took place in 2015 when the reward was reduced from 50 to 25 LTC. In 2019, the reward dropped to 12.5 LTC, while in 2023 the reward was reduced to 6.25 LTC.

Mimblewimble protocol

The Mimblewimble protocol is a modified version of the Proof-of-Work mechanism that significantly improves privacy. It is an extension that makes the content of a transaction untraceable, making it difficult to trace and ensuring user privacy. The Mimblewimble Extension Blocks (MWEB) upgrade was implemented on May 19, 2022. Users can choose whether to use the Mimblewimble protocol for each transaction.

Anyone can mine Litecoin by setting up a node within the Litecoin network. For this you need a computer with a powerful CPU or GPU, or a specific ASIC mining machine. The latter is a computer with special hardware designed for crypto mining.

Litecoin's Scrypt hashing algorithm makes mining more accessible to individual users than Bitcoin's SHA-256 algorithm. This allows miners to use less powerful hardware, often making the cost of entry lower.

How much money someone can make from Litecoin mining depends on the computing power of the hardware. Miners can pool their computing power with others by working in a mining pool, which is often more effective than mining individually.

Litecoin is unique because it differs from other blockchains in the following features:

• The first Altcoin: As one of the first alternative cryptocurrencies, Litecoin played an important role in the development of the crypto sector.
• Faster block times: With block times of just 2.5 minutes, compared to Bitcoin's 10 minutes, Litecoin adds blocks to the blockchain faster.
• Larger maximum supply: Litecoin has a max supply of 84 million, while Bitcoin has a supply of 21 million coins.
• Different hashing algorithm: The Litecoin blockchain uses Scrypt as its hashing algorithm, which is a less complex algorithm than Bitcoin's SHA-256 algorithm.
• SegWit and Lightning Network: Litecoin was one of the first blockchains to integrate SegWit and Lightning Network.
• Strong security: Thanks to the proven speed of the blockchain, Litecoin is seen as a reliable and secure cryptocurrency.

What is the difference between Litecoin and Bitcoin?

Although Litecoin and Bitcoin are often compared to each other, they differ in several ways. Litecoin offers faster transaction times with blocks mined every 2.5 minutes, as opposed to Bitcoin's 10 minutes. Litecoin also has a larger maximum supply, consisting of 84 million coins, as opposed to Bitcoin's 21 million coins.

Additionally, Litecoin uses a different hashing algorithm. Because users need less powerful hardware to use this hashing algorithm, Litecoin mining is seen as much more accessible and democratic than Bitcoin mining.

You can purchase Litecoin at Bitvavo. Our exchange is suitable for both new and experienced traders to acquire LTC. Here are the steps to buy Litecoin:

1. Log in to your Bitvavo account or register as a new user.
2. Deposit money into your account via "Deposit".
3. Visit the Litecoin purchase page.
4. Enter the desired amount in euros or the amount of LTC you wish to purchase and click "Buy".

After the transaction, your Litecoin coins will be automatically added to your Bitvavo wallet. Selling Litecoin is just as easy and allows you to act quickly based on market changes.

Store Litecoin safely in your Bitvavo account, where we store the majority of customer assets in offline managed cold wallets for maximum security. We also recommend activating two-factor authentication (2FA) as an additional security measure for your account.

It is also possible to store your LTC coins in personal software or hardware wallets that support ERC-20 tokens. Simply add your external wallet address to your Bitvavo account to securely transfer your Litecoin.