Globally, Bitcoin as a cryptocurrency is receiving by far the most attention. But there are other cryptocurrencies that are also quite valuable. One of them is Litecoin. It was developed in 2011 with the main goal of launching a cryptocurrency that allows faster transactions than with Bitcoin. This mainly concerns the transfer of digital value between individuals, without the intervention of a large organization such as a bank.
The operation of Litecoin in a few words
Litecoin is a digital currency that can change hands in the blink of an eye. As with Bitcoin, all transactions are recorded in a log file. This is called blockchain. The special thing about this log file is that it logs in a decentralized way. That is, thousands of computers around the world have a copy of this log.
This is a guarantee that you can not just make changes to the log. Transactions are not stored individually, but are grouped and processed in blocks. A new block is then added to an existing block set. Hence the name blockchain.
The above payment network is maintained by the so-called nodes and miners. These are roles that you can also find on the Bitcoin network. Nodes are intersections in the network, where a complete current copy of the payment network is stored.
So there are a large number of complete copies of the payment network. Mines are special computers on which all kinds of calculations are made. The purpose of this is to be the first to discover the next block so you can add it to the blockchain. If they succeed, they will be rewarded.
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The usefulness of Litecoin
Like Bitcoin, Litecoin has been developed as a digital payment method, with which payment can be made directly to another person without the intervention of one or the other organization. This significantly reduces the cost of a transaction.
Each transaction with a Litecoin costs about 20 cents. It does not matter where in the world the receiver is located. Another feature of Litecoin is that the transactions are lightning fast. It takes a few minutes to complete a transaction. This is much faster than a Bitcoin transaction.
Especially compared to the traditional way of transferring money, so through bank intervention, the differences are big. First, the cost of a bank transfer to another part of the world is manifold.
You just pay between 20 and 30 percent commission. Another disadvantage of the traditional mode of transport is that often the recipient has to wait a long time for his money. It may take a few days to a week for him to be able to dispose of the money.
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