Mining Bitcoin, Trusting Bitcoin


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Unless you leave in the deepest parts of the Kalahari Desert with no access to any form of media or internet, then if you have not heard or stumbled on the word “cryptocurrency“ while reading, you are probably just plainly ignorant sorry.

Cryptocurrency, that word sounds exotic, right? Well, its meaning is even more fascinating than the sound of it. When I first read about it, I had to consult my bud Google. He seems to know all the answers, right?

So I did, but for some reason, I couldn’t seem to wrap my head around everything that was on there, so I kept digging, opened a couple of more pages and watched videos. That is when I started getting it.

Two things stood out about the cryptocurrencies:

One, a cryptocurrency is a purely digital form of an asset using cryptography to enable transactions and confirm asset transfer.

Two, the main cryptocurrency that people are investing in is Bitcoin, but there are others called altcoins like Litecoin which am going to talk about here in depth.

If you still have no idea what am talking about, do not to sweat it because am about to break all these down for you.

Litecoin as Bitcoin’s alternative

First, am going to put out real quick here that Bitcoin is the mother cryptocurrency while Litecoin-often called the “silver” of cryptocurrencies is the complementing assistant.

Litecoin is merely an alternative cryptocurrency based on the same coding as the Bitcoin but with slightly different technology especially when it comes to transaction validation and everybody knows Charlie Lee, this is the chap behind Litecoin. He used to work for Google by the way.

Litecoins enables instant transactions that are faster and ridiculously cheap all across the globe. Just like Bitcoin, Litecoin has eliminated the middleman thanks to the underlying Blockchain technology.


Differences between the Litecoin and Bitcoin

I know you are probably thinking right now that Litecoin is the Bitcoin’s competition. Well, it’s not.

Litecoin is mean to be the true alternative for Bitcoin after many alternatives failed.

To start off the differences, Litecoin is lighter, easier and faster to use than Bitcoin.

In Litecoin’s network, every block is created and “chained” after 2.5 minutes. This means that merchants can receive payments almost instantaneously unlike Bitcoin which takes 10 minutes for very block to be formed.

Both networks use Proof of work protocol but the underlying algorithm is what is different. For my buds that are not technical, you may need to Google this. Litecoin uses an encrypting algorithm called Scrypt while Bitcoin uses SHA-256. Scrypt algorithm is memory intensive but you don’t need specialized computer chips to mine them. On the other hand, SHA-256 is capital intensive—electricity wise and you need specialized chips called Application Specific Integrated Chips if you want to “mine” some Bitcoins.

Bitcoin is cryptocurrency’s gold and that is why the initial capital is high. After all, its Gold.


Litecoin as a Bitcoin’s Experiment

Yes it is trending right now, yes almost every investor is going crazy about it, but you are there thinking, why should I care about some digital silver coins?

Well, the prospects of Litecoin could be extremely convenient and safe for you to transact if the lighting network is implemented. The successfully activated Segwit precedes the lighting network that will make Litecoin fully functional. Bitcoin has this global attention but Litecoin is relatively low key and as such most technical changes set to be implemented on Bitcoin core must first prove to be successful in Litecoin. Segwit was the first change that was done in Litecoin and later tried in Bitcoin. Segwit 2X failed to go through but Litecoin went ahead and rolled out Lightning Network meant to increase speed, reduce transaction cost and make the platform more secure.

You will be able to make payments anywhere in the world using Litecoin while spending low transaction fees.

Among other advantages, the transactions will also be instant and secure. After all, who would not want that?

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