Devoting an article that evokes both the origins and the birth of Litecoin (LTC) is a big challenge! Indeed, the history of this cryptocurrency is so closely related to that of Bitcoin that it is difficult to trace its own history independently.
Litecoin has almost all the characteristics of the Bitcoin protocol. It differs in some particular points that we will address in the section devoted to the characteristics of Litecoin.
As for the origins and birth of cryptocurrency, it is not possible to separate them. So I’ll go quickly on the first part …
Origins of Litecoin
The origins of Litecoin are inseparable from those of Bitcoin . To say more about it would be to repeat to me, on the one hand, in this article and, on the other hand, between this article and the article on Bitcoin.
Birth of Litecoin
More interesting is the birth of the Litecoin protocol. Indeed, it took an event for it to detach from its original protocol .
The litecoin is the first of the altcoins having met a certain success. Altcoins are cryptocurrencies derived from bitcoin. The ether is itself considered an altcoin, although this assertion does not seem to me accurate because of the particularity of the blockchain Ethereum.
It was in October 2011 that the developer Charlie Lee embarked on the creation of a cryptocurrency. Passed by Google, Lee first created Fairbrix which was quickly a failure . Barely 11 days later, Lee had the idea to use the source code of the Bitcoin protocol to clear his failure. He modified the parameters that he considered necessary to create an improved Bitcoin: the Litecoin.
It is therefore not strictly speaking a hard fork (schism) but a cryptocurrency created in parallel, with technical bases identical to those of Bitcoin .
Like almost all major cryptocurrencies, Litecoin itself suffered a schism in 2018 that gave birth to Litecoin Cash (LCC).
You will find the official site of Litecoin by clicking on this link.
Characteristics of Litecoin
For a “crypto-developer”, the Litecoin protocol is of great interest. In fact, to sum it up roughly, it does just about everything better than the Bitcoin protocol . “Smarter, cheaper, faster” is his motto! However, Litecoin remains unknown and discreet. Probably a will of Charlie Lee and his community, which is not vague. This is the strength of Litecoin.
First improvement, while for the Bitcoin, a block is generated every 10 minutes is every 2 minutes 30 for the Litecoin . Transactions are therefore much faster and involve very low transaction costs.
If Litecoin is mined in the same way as Bitcoin and uses the proof-of-work consensus , the pay is more interesting for Litecoin . Miners are also allowed to mine Bitcoin in addition to Litecoin!
Similarly, Charlie Lee also wanted to limit the number of litecoins in circulation. 84 million against 21 million for bitcoins. A nice margin if demand was literally exploding.
Finally, even more interesting, the protocol Litecoin is a little cryptocurrency laboratory . Indeed, it is the first to test the Segregated Witness update (Segwit) and especially Lightning Network . As a reminder, Lightning Network is supposed to change Bitcoin old-fashioned status to that of young dashing sportsman!
For the rest, I do not need to make a drawing: it’s exactly like the Bitcoin protocol!
The Litecoin is a protocol more than interesting, it is a model for the others, wagering to be known and recognized! But maybe crypto-currencies also need their unfortunate lab rat … and it could be Litecoin.
More seriously, Charlie Lee has himself confirmed that his Litecoin was not intended to replace Bitcoin but to coexist with him . He distinguishes the digital gold Bitcoin, made to buy a house or a vehicle, and Litecoin, digital money, useful for shopping in supermarkets.
This point of view is extremely interesting and I totally share it. As Vitalik Buterin also thought very well with Ethereum, each cryptocurrency could serve a specific purpose and not get out of trouble with his neighbor, which some did not seem to understand …