From 2009 to 2011 has been an amazing journey for the World’s cryptocurrency. Satoshi Nakamoto had launched bitcoin on 3rd January 2009 – with an open source code, free to be modified and used for other projects spawning many other cryptocurrencies. Litecoin was launched on 7th October 2011 created by Charles Lee as silver to bitcoin’s gold
If we are to consider litecoin exchange we must first explore the difference between bitcoin and litecoin on the range of Coin Limit (21 Million and 84 Million respectively), Algorithm (SHA-256 and Scrypt respectively), Mean Block Time (10 minutes to 2.5 minutes respectively), Difficulty retarget (2016 block to both), Block Reward details (Halved every 210,000 blocks to Halved every 840,000 blocks) with an Initial reward (50 BTC and 50 LTC) respectively.
Today the block explorer for bitcoin is blockchain.info and for litecoin is block-explorer.com with Market caps of $10,467,596,650.78 and $540,274,528.26 respectively.
ASIC Mining & litecoin exchange
Both Bitcoin and Litecoin have a different proof of work algorithm. Bitcoin uses the SHA-256 hashing algorithm involving calculations which get accelerated in parallel processing. This makes bitcoin difficult! Now, litecoin was created to uncomplicated things, it was an improvement upon Bitcoin. It uses the scrypt algorithm originally named as s-crypt, pronounced as script incorporating SHA-256 but with serialized calculations. Using high speed RAM over bitcoins’s raw processing power, it is labeled as being a “memory hard problem’. This is one way of establishing the litecoin exchange.
Bitcoin Mining Rig
The second way of doing a litecoin exchange is GPU – Multiple Graphics Cards mining. When writing, the total hashing rate of the bitcoin network is over 20,000 Terra Hashes per second, while litecoin is just 95,642 Mega Hashes per second. The best litecoin mining rigs come in the form of custom PCs fitted with multiple graphics cards (ie: GPUs). These can handle the calculations needed for scrypt and have access to trail blazingly fast memory built into their own circuit boards.
Transaction and the litecoin exchange
- Litecoin can confirm transactions way more faster than bitcoin. This leads to the following implications:
- Litecoin handles a higher volume of transaction due to its quicker block generation
- However this creates more orphaned blocks in the litecoin caused due to significantly larger blockchains.
- The faster block time of litecoin significantly reduces the risk of double spending attacks on the understanding that both networks having the same hashing power.
- A merchant waiting for a minimum of two confirmations on litecoin would not have to wait beyond 5 minutes, whereas they would have to wait 10 minutes for just one confirmation with bitcoin.
So when it comes to litecoin exchange, the above must be kept in mind!