Litecoin is a blockchain and cryptocurrency that is considered to be the first successful alternative cryptocurrency to Bitcoin, ie the first so-called altcoin.
Litecoin was launched in 2011 and was marketed as digital silver, in a market where Bitcoin was widely considered digital gold. Litecoin today among the largest and most well-known cryptocurrencies. You can easily buy and sell litecoin (LTC) at Firi.
Litecoin was created by software developer Charlie Lee in October 2011. While employed by Google, Lee worked in his spare time to create a modified version of Bitcoin's open source code, which would eventually become Litecoin.
Lee confirmed early on that he does not want Litecoin to compete with Bitcoin, but that Litecoin should rather be an alternative to Bitcoin that relieves the Bitcoin network. This has also been evident in the fact that Litecoin has been very early in testing, and implementing, several of the major network upgrades that were developed for Bitcoin, such as Segregated Witness and Lightning Network.
Lee's vision for Litecoin was that it should be a cryptocurrency that was better suited for smaller transactions in everyday use, and he believed that Bitcoin had more utility value for large international transactions.
In what was a controversial decision in December 2017, Charlie Lee announced on the platform Reddit that he had sold and donated almost all of his Litecoin holdings. Lee believed that his large holding of Litecoin created a conflict of interest, and that his posts on social media could affect Litecoin's course. Lee has since 2017 had a role in the Litecoin Foundation, and focused on further adoption of Litecoin's technology.
An easy and cheap way to buy and store litecoin is through a crypto exchange such as Firi. Firi makes it easy to buy, sell and store your litecoins and other cryptocurrencies.
Cryptocurrency can be bought 24/7, and Firi makes it easy to switch between litecoin and NOK. In less than one business day, you can also sell your litecoin and several other cryptocurrencies for NOK and transfer to your bank account if you wish.
Because Litecoin is a decentralized network, it is possible to create a separate, private Litecoin wallet where you can store your litecoins.
When you create a digital wallet directly on the Litecoin network, you receive what is called a public key (public key) and a private key (private key) that is associated with your wallet. Because Litecoin is a decentralized network, it is possible to create a own, private Litecoin wallet where you can store your litecoins.
When you create a digital wallet directly on the Litecoin network, you receive what is called a public key (public key) and a private key (private key) that is associated with your wallet.
A public key can be compared to an account number for your digital wallet. For example, if someone is going to send you litecoin, they need access to your public key associated with your Litecoin wallet. You can safely send others your public key. A public key is a combination of letters and numbers that are unique to your digital wallet.
A private key can be compared to the password of your digital wallet. A private key is a combination of letters and numbers that are unique to your digital wallet.
A private key can also be generated in the form of a seed phrase, which in practice is 12 words that acts as a backup of your private key. If someone has access to your private key or your seed phrase, they will also have access to their cryptocurrency belonging to their wallet. It is therefore important not to share your private key with anyone.
It is important to note that a digital Litcoin wallet only supports Litecoin. For example, if you send bitcoins from a Bitcoin wallet to a Litecoin wallet, the bitcoins that are sent will be gone forever. Therefore, you need to be very aware of which public key you send and receive cryptocurrency on.
Litecoin is a solution based on blockchain technology. Satoshi Nakamoto launched Bitcoin in 2009 as the world's first cryptocurrency, and Charlie Lee created Litecoin based on Bitcoin's open source code.
Like, for example, Bitcoin's blockchain where you can send and receive bitcoins, Litecoin's blockchain is used to send and receive litecoin globally, without a third party being able to see or enter unexpectedly.
A blockchain is simply explained as a database that contains data, and which is secured through a distributed network of participants. A database is a collection of information. This data is stored in blocks, and each block of data is linked together and forms a chain - that is, a block chain.
The most common data in a blockchain is transactions. Instead of a key player being responsible for storing the data, the majority of blockchains are secured through the use of cryptography and through a decentralized network of people around the world.
An important factor that distinguishes blockchains from ordinary databases is that the information in a blockchain cannot be manipulated by individual parties and cannot be changed without the consent of the majority of the network.
The choice of Litecoin's algorithm means that transactions in Litecoin's blockchain are approved much faster than Bitcoin, and that it handles a much higher volume of transactions. At the same time, the change in the algorithm has an impact on the security and decentralization of the network.
Some factors that show the advantages and disadvantages of the two protocols:
Litecoin is often seen as digital silver, or as the "little brother" of Bitcoin. Litecoin is also one of the largest and most popular cryptocurrencies and can be easily bought, sold and stored on a crypto exchange such as Firi. You can also create a decentralized wallet on the litecoin network and store your LTC there if you prefer to secure your own cryptocurrency.
The advantage of litecoin is technical upgrades which, among other things, make transactions faster and cheaper on the Litecoin network compared to Bitcoin. There is also a lower entry barrier for those who want to participate in the "mining" of Litecoin compared to Bitcoin. At the same time, many also believe that Bitcoin is an even more decentralized network and more secure against attacks. Litecoin is often earlier in testing technical upgrades that are being considered for Bitcoin. If you want to learn more about Litecoin, you can also visit the public website and read more there: https://litecoin.org/