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A Complete Guide to Litecoin (LTC)

In this guide on Litecoin (LTC or Ł), we’ll be discussing everything you need to know about it and what are the shortcomings in Bitcoins that were solved by it?

Facebook claims it will outreach millions of unbanked population of the world and propounded an extensive solution for them.

 That being said, Facebook has recently decided to inaugurate its own cryptocurrency Libra after being motivated by the Chinese government act to publicly endorsed cryptocurrency. Facebook creator Mark Zuckerberg is of the view in order to remain relevant in extremely competitive tech industry, we need to set aside resources and intellectual capital to foray into the cryptocurrency.

 Facebook cryptocurrency Libra will be available for the masses in 2020 and allow its billions of users across the globe to make financial transactions online via Libra.

 This new technology appears to be disruptive for the banking industry and global payment processing services. Despite the hype created by the mainstream regarding the potential implication of Libra and its probable uses, the skepticism amongst the peoples persists that’s why Libra is undergoing continuous scrutiny before its launch.

 Apart from the regulatory questions about Libra, you might be wondering how soon we’ll be able to buy a cup of a coffee with a Libra coin.

How Litecoin Initiates

Litecoin was initially put forth by an ex-Google developer namely Charlie Lee. Like many other blockchain aficionados, Charlie strongly believes the Bitcoin algorithm has some inefficiencies that need to be resolved.

These inadequacies include:

  • Bitcoin’s inability to expeditiously process the transaction
  • It’s mining methodology which is completely infeasible because it gives unfair privilege to an affluent persons.
  • Lack of scalability because the number of transactions it can process is nowhere comparable with the global payment card processing systems like Visa and Master Card as they both can process thousands of transactions per second.

Overview of Litecoin

There are countless similarities between Bitcoin and Litecoin. Due to these similarities, many crypto enthusiasts envisage it as a Silver to Bitcoin’s gold.

It designed to be used as a currency for the global payment system. This means leveraging the potential of it, peoples can send or receive funds conveniently without relying on any third-party intermediary (such as a bank or a central government) to validate the transactions between the sender and a recipient.

To fully grasp what Litecoin is and how it could be advantageous for someone? You first need to realize what real-world problems can be solved through it?

Let’s take an analogy, suppose that John (who lives in the UK) intends to remit funds to his friend bob who lives outsides his country. In this scenario, if the sender uses a bank then the transactions would be:

  1. Too costly because banks deduct too much transaction processing fees
  2. Takes time to reach
  3. Necessitates John to perform too much legal work

Conversely, if John opts Litecoin to remit his funds to his friend he can manage to get rid of all these aforementioned difficulties.

Firstly, the cost of a remittance transfer is comparatively cheaper. Litecoin won’t charge more than few cents to process the transaction

Secondly, John’s friend will receive his money within 2.5 minutes which is quite faster than the bank transaction. If you send money to your friend sitting next to you or living outside your country, the time taken in both cases will be the same.

Thirdly, as the Litecoin is decentralized thereby you have complete supremacy over your Litecoin coins. This means you no longer need to perform any complex legal procedure to send your coins.

These benefits make Litecoin the best alternative to the traditional banking system for sending and receiving funds.

Conclusion

It’s completely impossible to cover the whole Litecoin cryptocurrency in this short article. But I sincerely hope this guide will allow us to grasp the basic idea of Litecoin, why it was proposed? and what are shortcomings of Bitcoin it can solve?

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