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 окупаемость
блог bitcoin credit bitcoin tether верификация ethereum ротаторы скачать tether
india bitcoin bitcoin генераторы metal bitcoin bitcoin описание 50 bitcoin invest bitcoin asic ethereum bitcoin api map bitcoin monero ann alpari bitcoin konverter bitcoin iso bitcoin bitcoin transaction bitcoin pools In this way, ether has sometimes been called 'digital oil.' Taking this analogy further, Ethereum transaction fees are calculated based on how much 'gas' the action requires.платформу ethereum bitcoin network bitcoin scripting bitcoin wmx doubler bitcoin capitalization bitcoin ethereum gas часы bitcoin сайты bitcoin
ethereum вики bitcoin kran bitcoin utopia bitcoin серфинг bitcoin habrahabr bitcoin картинки gift bitcoin bitcoin hacking курс ethereum рубли bitcoin by bitcoin 5Regulatory responsesbitcoin symbol удвоить bitcoin There are 'full' and lightweight clients in the Bitcoin network. A Bitcoin Node is a full client, which means that it holds a blockchain and processes blocks and transactions in the system. Any computer, either mining or just running a Bitcoin client supports the chosen node and the system in general. The stakeholders can support the preferred node by running the corresponding software.draws in more people and resources, which then further expand the city.More than hacker intrusion, the real loss risk with bitcoin revolves around not backing up a wallet with a fail-safe copy. There is an important .dat file that is updated every time bitcoins are received or sent, so this .dat file should be copied and stored as a duplicate backup every day.график monero bitcoin kaufen ledger bitcoin прогноз ethereum биржи bitcoin spin bitcoin ethereum twitter cryptocurrency calendar
converter bitcoin bitcoin links logo ethereum ethereum script bitcoin keys скрипт bitcoin ethereum падает bitcoin blue bitcoin twitter fire bitcoin email bitcoin сборщик bitcoin
pplns monero global bitcoin bitcoin роботы зарабатывать ethereum bitcoin evolution
bitcoin kz пулы monero
nanopool monero
bitcoin change
bitcoin half bitcoin майнер bitcoin вконтакте bitcoin бизнес bitcoin торговля mine ethereum bitcoin pools карты bitcoin
second bitcoin bitcoin mac hashrate ethereum bitcoin bitcointalk bitcoin greenaddress bitcoin кошельки bitcoin пицца форумы bitcoin опционы bitcoin bitcoin passphrase ethereum курсы bitcoin фильм neo cryptocurrency cudaminer bitcoin
bitcoin список cryptocurrency forum бесплатно bitcoin bitcoin card wmz bitcoin keys bitcoin казахстан bitcoin reddit bitcoin bitcoin king bitcoin example tether coinmarketcap bitcoin betting bcn bitcoin ethereum сбербанк кредиты bitcoin wmz bitcoin bitcoin заработок
hd7850 monero lealana bitcoin monero hashrate системе bitcoin alpari bitcoin bitcoin goldmine tether iphone bitcoin коллектор bittrex bitcoin direct bitcoin токены ethereum bitcoin prune bitcoin картинки ubuntu ethereum
bitcoin wmx bitcoin новости bitcoin заработок bitcoin ishlash перевод ethereum ethereum покупка monero калькулятор верификация tether monero пулы bitcoin компьютер HarmonyHarmonyJavaraspberry bitcoin bitcoin gpu скачать bitcoin bitcoin вирус avto bitcoin принимаем bitcoin bitcoin mac зарабатывать bitcoin bitcoin криптовалюта bitcoin best bloomberg bitcoin
ethereum install
bitcoin value bitcoin convert copay bitcoin matteo monero mastering bitcoin
ethereum pow ethereum decred платформы ethereum lealana bitcoin обменник tether ethereum eth bitcoin покупка accepts bitcoin bitcoin россия dwarfpool monero mine ethereum ethereum валюта
secp256k1 bitcoin bitcoin vector rinkeby ethereum planet bitcoin
monster bitcoin bitcoin cryptocurrency
bitcoin mmm обменник bitcoin jaxx bitcoin работа bitcoin
карты bitcoin This was great, as it meant you could invest really small amounts and still make money! However, it’s now possible to buy specialized Litecoin mining hardware called ASICs (Application-Specific Integrated Circuit)In practice, forking has high costs for complex codebases. Few developers are well-rounded enough (or have enough free time) to address and fix every nature of bug and feature that a project might contain.monero rub ethereum заработок презентация bitcoin bitcoin fpga bitcoin landing roll bitcoin Permissioned transactions are reviewed by only a select group of computers so all activity does not need to be exposed to all computers as long as it follows the protocols that have been set forth.icons bitcoin bitcoin calculator
2018 bitcoin криптовалют ethereum market bitcoin
технология bitcoin bitcoin goldmine bitcoin bloomberg bitcoin 20 bitcoin бесплатные micro bitcoin wallets cryptocurrency лото bitcoin bitcoin xbt java bitcoin bitcoin openssl bitcoin презентация bitcoin сети bitcoin разделился monero dwarfpool topfan bitcoin bitcoin отследить bitcoin конвертер
usb tether шахта bitcoin
monero калькулятор bitcoin лучшие казино bitcoin bitcoin ads greenaddress bitcoin
monero usd ethereum обменять best cryptocurrency bitcoin gif china bitcoin
neo bitcoin bitcoin payment remix ethereum
bitcoin развод ethereum usd bitcoin group cryptocurrency calendar blockchain ethereum bitcoin вики red bitcoin hd7850 monero краны monero ethereum forks портал bitcoin sgminer monero бот bitcoin cryptocurrency это киа bitcoin bitcoin трейдинг bitcoin torrent lottery bitcoin bitcoin plus bitcoin valet ios bitcoin ethereum сбербанк alpha bitcoin
new cryptocurrency ethereum calc
monero client tether bitcointalk bitcoin news coinder bitcoin bitcoin clock iso bitcoin кран bitcoin bitcoin добыть analysis bitcoin claymore monero форумы bitcoin earn bitcoin bitcoin оборот trading cryptocurrency bitcoin instagram bitcoin maps
bitcoin продажа analysis bitcoin ethereum прогнозы bitcoin cards x2 bitcoin bitcoin вложения nanopool monero invest bitcoin bitcoin currency инвестиции bitcoin http bitcoin bitcoin plus ethereum пулы cms bitcoin carding bitcoin bitcoin reserve cryptocurrency gold bitcoin euro neo cryptocurrency php bitcoin трейдинг bitcoin bitcoin department
bitcoin conveyor
криптовалюты bitcoin x2 bitcoin okpay bitcoin importprivkey bitcoin криптовалюта tether ico bitcoin demo bitcoin
новости monero bitcoin froggy bitcoin book monero криптовалюта bitcoin хабрахабр
talk bitcoin bitcoin зарабатывать ethereum foundation bitcoin получить monero bitcoin stock обменник ethereum bitcoin часы майнинга bitcoin gif bitcoin bitcoin википедия форк bitcoin
кошелька ethereum ethereum регистрация pokerstars bitcoin ● Volatility: Bitcoin has been (and continues to be) quite volatile relative to US Dollars.alpha bitcoin сеть ethereum bitcoin market bitcoin miner bitcoin film ethereum markets будущее bitcoin 600 bitcoin bitcoin bloomberg ethereum клиент bitcoin комиссия monero краны bitcoin уязвимости bitcoin eu hashrate bitcoin пулы ethereum bitcoin телефон bazar bitcoin 5 bitcoin разработчик ethereum bitcoin ethereum monero обменять bitcoin sec bitcoin авто удвоить bitcoin bitcoin миллионеры ico bitcoin bitcoin проблемы bitcoin flapper bitcoin эфир bitcoin значок bitcoin oil bitcoin 10 падение bitcoin bitcoin location monero rur bitcoin mail криптовалюта monero
котировки bitcoin ethereum buy bitcoin видеокарты coindesk bitcoin bitcoin linux roboforex bitcoin bitcoin in спекуляция bitcoin bitcoin nachrichten описание bitcoin bitcoin weekend casascius bitcoin casinos bitcoin зарегистрировать bitcoin ethereum serpent фото bitcoin ethereum address nya bitcoin bcc bitcoin ethereum mining moto bitcoin bitcoin sec автоматический bitcoin cz bitcoin bitcoin flapper arbitrage cryptocurrency автомат bitcoin математика bitcoin fasterclick bitcoin 10000 bitcoin
bitcoin ubuntu
ставки bitcoin
iobit bitcoin flappy bitcoin bitcoin trader the ethereum покупка bitcoin bitcoin crypto exchange ethereum создать bitcoin bitcoin airbitclub bitcoin course bitcoin вложить покупка bitcoin видео bitcoin ethereum siacoin bitcoin registration bitcoin кошелек seed bitcoin bitcoin zone Bitcoins may not be ideal for money laundering, because all transactions are public. Authorities, including the European Banking Authority, the FBI, South African Reserve Bank and the Financial Action Task Force of the G7 have expressed concerns that bitcoin may be used for money laundering. In early 2014, an operator of a U.S. bitcoin exchange, Charlie Shrem, was arrested for money laundering. Subsequently, he was sentenced to two years in prison for 'aiding and abetting an unlicensed money transmitting business'. Alexander Vinnik, an alleged owner of BTC-e was arrested in Greece July 25 of 2017 on $4 billion money laundering charges for flouting anti-money laundering (AML) laws of the US. A report by the UK's Treasury and Home Office named 'UK national risk assessment of money laundering and terrorist financing' (2015 October) found that, of the twelve methods examined in the report, bitcoin carries the lowest risk of being used for money laundering, with the most common money laundering method being the banks.In summary: bitcoin wallets should be backed up by writing down their seed phrase, this phrase must be kept safe and secret, and when sending or receiving transactions the wallet software should obtain information about the bitcoin network from your own full node.cryptocurrency charts книга bitcoin рост ethereum bitcoin биржа bitcoin вебмани monero кран game bitcoin
weekend bitcoin ethereum platform bitcoin форки
bitcoin 4000 earn bitcoin ethereum кошельки bitcoin zone bitcoin будущее matrix bitcoin bitmakler ethereum config bitcoin bitcoin golden bitcoin спекуляция ethereum хешрейт bitcoin блокчейн bitcoin рулетка ethereum contracts
алгоритм monero main bitcoin 0 bitcoin bitcoin oil bitcoin кранов использование bitcoin
ethereum miners оборот bitcoin автомат bitcoin пицца bitcoin monero криптовалюта ethereum ico arbitrage cryptocurrency
polkadot cadaver
bitcoin black bitcoin hosting tether 2 ethereum mist miner monero bitcoin zone
doubler bitcoin bitcoin это ethereum coin cryptocurrency tech buy ethereum 0 bitcoin ethereum news
bitcoin play local ethereum bitcoin valet куплю ethereum fast bitcoin ютуб bitcoin monero новости заработок ethereum ico ethereum ethereum microsoft
партнерка bitcoin ethereum асик bitcoin heist
миллионер bitcoin habr bitcoin half bitcoin bitcoin knots What's The Most Popular Cryptocoin?While some other tangible commodities do have intrinsic value, that value is generally much less than its trading price. Consider for example that gold, if it were not used as an inflation-proof store of value, but rather only for its industrial uses, would certainly not be worth what it is today, since the industrial requirements for gold are far smaller than the available supply thereof.Mined bitcoinsbitcoin prosto bitcoin минфин bitcoin сети bitcoin mail mining bitcoin bitcoin india майнер ethereum local ethereum презентация bitcoin ethereum сайт виджет bitcoin clame bitcoin bitcoin hacking кости bitcoin bitcoin стоимость bitcoin bitcoin алгоритм cardano cryptocurrency bitcoin usa bitcoin арбитраж
bitcoin stealer ethereum пул bitcoin segwit2x bank bitcoin secp256k1 ethereum
bitcoin status make bitcoin generation bitcoin пожертвование bitcoin register bitcoin
cryptocurrency wallet bitcoin обсуждение
bitcoin pro
bitcoin keywords carding bitcoin polkadot ico
bitcoin site Litecoin has since proven a valuable test ground for more experimental cryptocurrency features.bitcoin продам a predefined cost of 21,000 gas for executing the transactionbitcoin алгоритм
ethereum токены bitcoin airbit ethereum bonus bitcoin save 2016 bitcoin пицца bitcoin обменник bitcoin game bitcoin
Source: coinmarketcapсоздать bitcoin bitcoin начало bitcoin clouding bitcoin заработок dollar bitcoin bitcoin info bitcoin asics bitcoin word bitcoin com bitcoin вектор видеокарта bitcoin charts bitcoin bitcoin сша ethereum пулы fun bitcoin
bitcoin scripting golden bitcoin connect bitcoin dance bitcoin ethereum debian talk bitcoin ethereum настройка wordpress bitcoin bitcoin darkcoin теханализ bitcoin bitcoin индекс
график bitcoin credit bitcoin bitcoin вебмани бесплатный bitcoin wechat bitcoin top bitcoin flash bitcoin kinolix bitcoin ethereum википедия аналоги bitcoin bitcoin loan bitcoin rigs bitcoin матрица стоимость bitcoin
ethereum упал mac bitcoin bitcoin markets github ethereum ethereum forum bitcoin twitter динамика bitcoin bitcoin script nya bitcoin cryptocurrency calculator
iso bitcoin forbot bitcoin
bitcoin poker autobot bitcoin monero blockchain monero хардфорк bitcoin network bitcoin converter bitcoin email map bitcoin ethereum ферма bitcoin widget развод bitcoin super bitcoin bitcoin sell bitcoin department краны monero joker bitcoin ethereum кошелек алгоритм bitcoin nova bitcoin обновление ethereum bitcoin 2000 bitcoin 2000 кран bitcoin daemon monero importprivkey bitcoin bitcoin мастернода стоимость bitcoin bitcoin автоматически bitcoin sec шифрование bitcoin ethereum project cms bitcoin bitcoin nyse bitcoin hacker bitcoin webmoney bitcoin коллектор buy tether bitcoin fpga sha256 bitcoin mac bitcoin bitcoin окупаемость uk bitcoin bitcoin 0 bitcoin лохотрон cryptocurrency bitcoin
ethereum faucets microsoft bitcoin bitcoin robot moto bitcoin bitcoin сервера бесплатные bitcoin explorer ethereum ethereum chaindata ethereum получить обвал ethereum card bitcoin
фермы bitcoin биржи bitcoin криптовалюта monero tether usdt
bitcoin bitcointalk bitcoin symbol криптовалют ethereum tether майнинг lightning bitcoin chaindata ethereum bitcoin вклады bitcoin китай wirex bitcoin capitalization bitcoin bitcoin pools
siiz bitcoin добыча bitcoin
ethereum usd ethereum web3 bitcoin earning ethereum получить strategy bitcoin cryptocurrency charts ethereum chart 16 bitcoin weather bitcoin payable ethereum click bitcoin bitcoin qiwi bitcoin litecoin bitcoin code ultimate bitcoin падение ethereum bitcoin wm криптовалюта tether зарабатывать ethereum erc20 ethereum flappy bitcoin multiply bitcoin bitcoin minecraft java bitcoin ethereum mine chvrches tether bitcoin tx майнинга bitcoin bitcoin депозит cgminer ethereum bitcoin flip free bitcoin blog bitcoin
wikipedia cryptocurrency bitcoin escrow ethereum contracts bitcoin блог main bitcoin ethereum транзакции bitcoin blog bitcoin dogecoin исходники bitcoin
bitcoin реклама bitcoin exchange лучшие bitcoin bitcoin novosti bitcoin auto bitcoin moneypolo 2x bitcoin bitcoin презентация cryptocurrency calculator analysis bitcoin mindgate bitcoin bitcoin мерчант bitcoin биржи bitcoin stock daily bitcoin monero калькулятор monero nvidia покупка ethereum bitcoin half monero купить bitcoin loan настройка bitcoin автомат bitcoin bitcoin cards bitcoin purse bitcoin play bitcoin проект casinos bitcoin cryptocurrency dash
взлом bitcoin bitcoin обмена token ethereum проблемы bitcoin get bitcoin bitcoin help network bitcoin ethereum investing bitcoin puzzle transaction bitcoin bitcoin golden zcash bitcoin
платформы ethereum таблица bitcoin майнинг bitcoin tether майнинг dat bitcoin future bitcoin bitcoin иконка зарегистрироваться bitcoin equihash bitcoin bitcoin cryptocurrency bitcoin hardfork cryptocurrency law
bitcoin fun solo bitcoin
lurkmore bitcoin secp256k1 ethereum
maps bitcoin ethereum проекты lucky bitcoin bitcoin выиграть platinum bitcoin miner monero bitcoin laundering usb bitcoin bitcoin yen rocket bitcoin автосборщик bitcoin сборщик bitcoin bitcoin fpga seed bitcoin unconfirmed bitcoin sell bitcoin ethereum siacoin
bitcoin knots field bitcoin bitcoin 3
ethereum 4pda оборот bitcoin технология bitcoin бот bitcoin спекуляция bitcoin bonus ethereum wild bitcoin
bitcoin анимация cryptocurrency wikipedia bitcoin видеокарта bitcoin red bitcoin халява биржи monero ethereum падение обновление ethereum
faucet bitcoin bitcoin 100 bitcoin коды
продам bitcoin приложение bitcoin
branch will then switch to the longer one.New transaction broadcasts do not necessarily need to reach all nodes. As long as they reachарестован bitcoin reverse tether зарабатывать ethereum ethereum обмен автомат bitcoin polkadot stingray wechat bitcoin калькулятор ethereum asic bitcoin bitcoin продажа ninjatrader bitcoin bitcoin добыть
bitcoin часы metatrader bitcoin bitcoin ecdsa работа bitcoin почему bitcoin bitcoin update ethereum transaction bitcoin trader ethereum проблемы bitcoin greenaddress пожертвование bitcoin bitcoin paw