Litecoin and Bitcoin share certain similarities. Both projects are open-source, and transactions are recorded in chronological order on a decentralized ledger – Litecoin's blockchain.
Similar to Bitcoin, Litecoin also employs a Proof of Work (PoW) mechanism to achieve consensus and generate new data blocks. The Scrypt algorithm posed challenges in the transaction process. The system then notifies all miners in the network to compete in solving these problems. The miner that successfully solves the problem earns the right to create a new block and receive attractive block rewards.
Anyone with computer hardware can start mining Litecoin thanks to its PoW system. The initial Scrypt algorithm made the use of specialized mining machines like ASICs inefficient. However, due to the failure of this approach, most of the Litecoin mining activities are now carried out by mining farms and cryptocurrency mining pools using hardware with significant technological configurations.
According to Charlie Lee, the original purpose of creating LTC was to develop a form of cryptocurrency for payment activities and as an upgrade to Bitcoin. Litecoin gradually achieved its goals while possessing some notable features, including:
- Fast transaction speed
- High network security
- Smart contracts
In my personal opinion, this is a rather good idea. If the project follows the right strategy, LTC has the potential to break into the top 10 during the upcoming uptrend season. Show Less
