n 2011 The lightcoin network became a reality. According to many, this is the first successful "alternative cryptocurrency", and the success of Lightcoin leads to a wave of innovation.
Although Litecoin is not the first cryptocurrency to copy Bitcoin’s code and change its features, it is one of the most significant in history, although there is frequent criticism that the project has no clear purpose.
To meet the criticism, the developers of Litecoin differentiate the technology by reducing the time required to add new blocks of transactions to the blockchain network of Lightcoin. The idea behind this is that this change can be attractive to traders who are sometimes forced to wait 6 confirmations (about an hour) before they can be completely sure that a Bitcoin transaction is irreversible.
Due to the increased interest in cryptocurrency in the mid-2010s, the developers behind LTC took a more aggressive approach to development. The team introduces new features such as Lightning Network and Segregated Witness. Subsequently, the Bitcoin network also introduced these features.
The project differs from many other cryptocurrencies in that it has always been positioned as an adjunct to bitcoin. Initially, marketers portrayed LTC as “silver” and Bitcoin as “gold,” a slogan that continues to attract potential investors to this day.
Who created Lightcoin?
Litecoin is one of the first alternative cryptocurrencies, created in 2011. It was created by a programmer and former Google employee named Charlie Lee – a computer scientist and graduate of the Massachusetts Institute of Technology (MIT).
Lee began his career in technology long before the Litecoin project began and worked for internet giant Google. He later moved to the Coinbase cryptocurrency exchange as director of the engineering department in 2013.
At the end of 2017, Lee left Coinbase to devote himself entirely to the development of Litecoin. Lee is now the executive director of the Lightcoin Foundation, a non-profit organization dedicated to the project.
What makes Lightcoin unique?
The developers have never been afraid to give new ideas a chance or make innovative changes to Lightcoin’s code. Therefore, they first implemented SegWit in 2017, a few months before Bitcoin. That same year, they were the first to test the so-called Lightning network, successfully sending 1 Litoshi (the smallest unit of LTC) from one wallet to another. Litecoin is usually ahead of Bitcoin in terms of technological innovation.
Litecoin’s philosophy has never been quite clear, except for its desire to be an “auxiliary” Bitcoin network. Charlie Lee came up with the idea of creating a “lighter” version of Bitcoin, with a shorter time to confirm transactions and a larger amount of currency in circulation. The developers see the LTC as a means of payment that can be used by anyone.
What distinguishes Litecoin from Bitcoin is that LTC uses much less processing power than the Bitcoin hashing algorithm. Compared to Bitcoin block generation time, the LTC network generates network blocks four times faster – an average of 2.5 minutes, compared to 10 minutes with Bitcoin. The maximum amount of 84 million Lightcoins in circulation is also four times the maximum amount of Bitcoins.