What Is Litecoin? Explaining The Halving

Litecoin is one of the first
cryptocurrencies created after Bitcoin And still strives
to be the silver to Bitcoin's gold. Today
we're going to be talking about Litecoin In the up and coming housing
and everything that you need to know. My name is Trevor,
your host here at Coinmarketcap. And let's get started. Litecoin with these symbol LTC,
sometimes described as a Bitcoin Lite, is a digital asset
that is designed to enable The instant peer to peer exchange of value
at affordable rates. Litecoin is one of the most Veteran crypto projects out there
and still has a large active community. So first things first, we need to talk
about the up and coming Litecoin halving And it's possible
impact on the price in 2023. So are you confused why Litecoin
has recently been moving in the markets? Many, Well, it's all due to Litecoin up
and coming Halving event, which is scheduled
to occur in August of 2023. So regarding the events,
possible influence on the assets price, There has been a lot of speculations
in the crypto community Where some are following in
and others are booking profit. But what exactly is going to happen
in this event? Well, the halving will reduce
the mining reward for Litecoin by half From at 12.5 to 6.25 LTC. So this year of 2023, Litecoin
began its price growth on January 16th And it hit its peak on Monday,
July 5th at around $113. The overall market has mixed sentiments. Related to this event were a market
analyst Michaël van de Poppe believes That Litecoin will hit a $200
rekt capital. Another analyst thinks a deep retracement
with a 70% drop will fall As soon as we have a very limited number
of past housing events. In this case of Litecoin,
the sample size is too small To accurately predict
the future price movements of the coin. Therefore,
it's important to maintain caution While approaching these assumptions
let's talk about Litecoin’s History.

Litecoin
first surfaced in October of 2011, Two years after the Bitcoin's
genesis block was mined. Litecoin was first Released on GitHub by its creator,
the well-known computer scientist Charlie Lee, a Google employee and later
director of engineering at Coinbase. Litecoin had the initial Aim of supplementing Bitcoin's economy
rather than competing with it. The crypto community quickly
accepted this narrative, calling Litecoin The silver to Bitcoin's gold,
which made the digital asset One of the highest valued coins
and a top five crypto for a long time. In November 2013,
it witnessed a huge surge That catapulted the asset
into the public limelight. Lee sparked controversy
in mid-December of 2017 When he publicly declared, while Litecoin
was enjoying an all time high That he had sold in donated
all of his Litecoin holdings In order to focus more objectively
on the currency's development Litecoin’s
price subsequently tanked, and many irate Litecoin holders
rather unfairly blamed Lee for this. Instead of taking into account
the end of the 2017 bull run for allegedly Dumping his own currency, Litecoin
is a fork from the Bitcoin core source Code with a few key differences
that distinguish it from Bitcoin. It has a faster block generation
time, two and a half minutes Versus Bitcoin's ten,
a larger total coin supply And the use of the script hash function
as opposed to Bitcoins As a 256 encryption Litecoin
also implemented several upgrades That were initially slated
for deployment on the Bitcoin network, Such as segregated witnesses or SegWit, With the aim of increasing its transaction
throughput. It has also integrated a Layer 2 scaling
solution called the Lightning Network. Next, let's talk about
Litecoin and Mimblewimble. In January of 2021, Litecoin launched its Mimblewimble
upgrade via The minimal symbol extension
block or MWEB. Making Litecoin
MimbleWimble friendly allows the network

To increase the usability of its currency
by adding confidentiality. Features Litecoin took its first steps
towards integrating that MimbleWimble Back in October of 2019 with the Litecoin
MimbleWimble TESTNET Launching in October of 2020. How many Litecoins are there? Well, Litecoin
adheres to a scarce tokenomics Model, permitting
only a limited amount of LTC to be mined. The Cryptocurrency's supply
is capped at 84 million, with around 73 million in circulation,
as of July 2023. Like Bitcoin, Litecoin also undergoes
a block reward, halving Approximately
every 840,000 blocks or four years, Which slows down the pace of new coins
being mined over time. The Litecoin network has undergone two,
halving events so far First in 2015 and then in 2019. BLOCK Rewards began with 50 Litecoin
at launch and currently stand At around 10.5 LTC. The next halving is estimated
to occur in August of 2023 And will reduce the rewards to 6.25 LTC per block, which is similar
to Bitcoin's current mining rewards. The halving mechanism has been engineered
to make it harder to mine LTC As its circulating supply
comes closer to its maximum supply, Which prevents the indefinite inflation
of the coin and rewards those miners Who took part in maintaining the network
in its early days. Now let's talk about Litecoin
versus Bitcoin. Right? Gold versus Silver
Litecoin began as a fork of Bitcoin. It has several differences
to its predecessor. First, it goes beyond the block
limitations of its parent protocol With a block time of two
and a half minutes. Second, Lee has architecture,
the network to function As a lighter and faster version of Bitcoin
as its name suggests. Litecoin also uses a script hash function
instead of Bitcoin's SHA 256 In order to avoid being taken over
by ASIC. Based miners
to allow CPU and GPU miners to thrive. However, as time went on, basic
miners were in fact able to develop script

Based hardware and also to infiltrate
the Litecoin mining economy. Litecoin was designed for speed,
whereas Bitcoin was built For maximum security and immutability
as a lighter version of Bitcoin. It can process transactions
a lot faster and prevent payment delays. Bitcoin payments are processed in around
nine or 10 minutes, Which may be a bit slow
for some situations. Bitcoin does, however, offer Better security as it allows more time
for information to spread throughout A global network of peers or nodes
before transactions are confirmed. Now let's talk about
Litecoin versus Dogecoin. So did you know That the popular meme Crypto Dogecoin
is a fork of the lucky coin blockchain, Which is a fork of coin,
which is itself a fork of bitcoin. It's enough to go mad actually, Litecoin and dogecoin
use the same script based mining system. So they are commonly used in merge mining,
which is a mining pool feature That enables users to mine two different
cryptocurrencies simultaneously. However, the two protocols differ
immensely in their economic models. Dogecoin has an infinite token supply
and does not undergo halving periodically. Dogecoin blocks are generated Every minute, making it
two and a half times faster than Litecoin. Litecoin, however, is a lot scarcer,
which makes it more suitable As an asset to hold long term. Then when it comes to like coin versus
the theorem, There are a few main differences Between the purpose of Litecoin
and Ethereum and how they function. For starters, Litecoin
is meant to be a transactional currency Or store of value similar to Bitcoin. However, Ethereum functions As a decentralized global computer
with smart contracts, functionality And the ability
to run decentralized applications or dapps In terms of tokenomics
lLitecoin has a cap supply of 84 million, While Ethereum does not have
a fixed supply Litecoin’s Enduring success demonstrates
that altcoins can withstand

The test of time, remain relevant
and continue to evolve like coins. The low cost and fast
transaction capacity, As well as its growing community,
have all fueled its adoption As an accepted form of payment
at thousands of merchants worldwide. However, only time will tell
if Litecoin will remain worthy Of its moniker
as the silver to Bitcoin's gold. So let us know your thoughts
about Litecoin in the comments down below. Anyways,
guys, we'll see you in the next one.

Coinbase
OUR TAKE

Coinbase is a popular cryptocurrency exchange. It makes it easy to buy, sell, and exchange cryptocurrencies like Bitcoin. Coinbase also has a brokerage service that makes it easy to buy Bitcoin as easily as buying stocks through an online broker. However, Coinbase can be expensive due to the fees it charges and its poor customer service.

Leave a Comment

    • bitcoinBitcoin (BTC) $ 28,052.00 3.49%
    • ethereumEthereum (ETH) $ 1,689.48 0.87%
    • tetherTether (USDT) $ 1.00 0.03%
    • bnbBNB (BNB) $ 216.41 1.27%
    • xrpXRP (XRP) $ 0.522158 1.11%
    • usd-coinUSDC (USDC) $ 0.999813 0.06%
    • staked-etherLido Staked Ether (STETH) $ 1,687.57 0.72%
    • solanaSolana (SOL) $ 23.87 5.62%
    • cardanoCardano (ADA) $ 0.264436 2.13%
    • dogecoinDogecoin (DOGE) $ 0.062669 1.01%