Bitcoin and Litecoin are cryptocurrencies. These are the cryptocurrencies that are used for exchanging currency. These are used as proof-of-work of the mechanism. It uses the process that uses the computational power of GPUs and CPUs to verify transactions and blocks in the blockchain.
What is Bitcoin?
Bitcoin is the 1st decentralized cryptocurrency. It is a type of asset that uses cryptocurrencies. It is the first cryptocurrency which is introduced in 2009.
It is an investment, exchangeable currency, and controversial commodity. It has vomiting power to maintain the validity and security of a centralized database called a blockchain. It uses the computational power of GPUs and to a lesser extent of CPUs. It uses SHA-256 cryptographic hash function which encrypts the blockchain. It converts input to an output of fixed length to encrypt it.
Advantages
- It has high return potential.
- It has no public tracking and the transaction cannot be tracked back by the user.
- It is more transparent.
- It has more control and independence over its money.
Disadvantages
- It has no government regulations.
- These transactions don’t have legal protection like that of bank transactions.
- It has no guarantee of minimum valuation which affects users with a large number of cryptocurrencies.
- It has a lack of security.
What is Litecoin?
Litecoin is the lite version of Bitcoin. It is created in reaction to Bitcoins’ tendency to gravitate towards centralization. It adopts many of the features of Bitcoin.
It uses Scrypt as its hash function. Scrypt uses SHA-256 but includes a much higher memory of requirements of proof-of-work. It has some underlying blockchain and verification of Bitcoin. Litecoin can produce a greater number of coins than Bitcoin. But Bitcoin is more worthy than Litecoin.
Advantages
- It has cheaper transaction fees.
- It can handle more transactions per second.
- It has a maximum supply of coins.
- It has strong and liquid liquidity.
- It is faster to send coins.
Disadvantages
- It is an alternative to Bitcoin.
- It has been losing market share and has no gains.
- Due to these disadvantages, investors are investing in Ethereum.
- It has a high risk of loss.
- It is irreversible.
Difference between Bitcoin and Litecoin
| S.No |
Bitcoin |
Litecoin |
| 1. | Bitcoin uses SHA-256 encryption algorithms. | Litecoin uses Scrypt. |
| 2. | It produces a lesser number of coins than Litecoin. | It produces more coins than Bitcoin. |
| 3. | It is founded by Satoshi Nakamoto. | It is founded by Charlie Lee. |
| 4. | BTC is the cryptocurrency symbol. | LTC is a cryptocurrency symbol. |
| 5. | Satoshi is the cryptocurrency used. | Litoshi is the cryptocurrency used. |
| 6. | It can supply 21 million total coins. | It can supply 84 million total coins. |
| 7. | It has a transaction speed of 9 to 10 minutes per block. | It has a transaction speed of 2.5 minutes per block |
| 8. | Transaction cost is -1USD | Transaction cost is -0.012USD. |
| 9. | It is more difficult to access. | It is easier to access. |
| 10. | It uses digital money as Gold | It uses digital money as Silver. |
| 11. | It has a blockchain size of 153.89GB. | It has a blockchain size of 8.81GB |
| 12. | 50 coins are the initial block rewards. | 50 coins are the initial blockchain rewards. |
| 13. | 6.25BTC are the current block rewards. | 12.5 coins are the current blockchain rewards. |