Britcoin Over the past several years, public interest in cryptocurrencies has increased dramatically. The main focus of this interest has been Bitcoinwhich, following the release of its first public client inhas become the dominant name in cryptocurrency. In recent years, however, many other cryptocurrencies have entered the scene. Among these, one name which has garnered increasing interest is Litecoin.
In this article, we will explore the similarities and differences between these two leading cryptocurrencies. On the surface, Bitcoin and Litecoin share a lot in common. At the most basic level, they are of course both cryptocurrencies.
Whereas state currencies such as the U. Yet Bitcoin and Litecoin also differ in important respects. In what follows, we will address four of their most important differences, progressing from the most straightforward differences to the more complex. Whether this figure strikes you as either high or low will depend largely on your historical perspective. While Bitcoin remains by far the most highly valued player in the cryptocurrency space, others such as Ethereum, Ripple and Litecoin are catching up.
We can now ask the question, what other characteristics set Bitcoin and Litecoin apart? Total Amount of Coins One of the main differences between Bitcoin and Litecoin concerns the total number of coins which each cryptocurrency can produce.
The Bitcoin network can never exceed 21 million coins, whereas Litecoin can accommodate up to 84 million coins. Although in theory this sounds like a significant advantage in favor of Litecoin, its real-world effects may be negligible.
This is due to the fact that both Bitcoin and Litecoin are divisible into nearly infinitesimal amounts. In fact, the minimum quantity of transferable bitcoin is one hundred millionth of a bitcoin 0. Yet even assuming that this is true, this problem may be solved through simple software changes introduced at the level of the digital wallets through which Bitcoin transactions are made.
Transaction Processing Speed Although technically transactions occur instantaneously on both the Bitcoin and Litecoin networks, time is required in order for those transactions to be confirmed by other network participants.
According to data from Blockchain. The equivalent figure for Litecoin is roughly 2. In principle, this difference in confirmation time could make Litecoin more attractive for merchants. For example, a merchant selling a product in exchange for Bitcoin would need to wait nearly four times as long to confirm payment as if that same product were sold in exchange for Litecoin.
On the other hand, merchants can always opt to accept transactions without waiting for any confirmation at all.