What's Litecoin? - An Explanation
Litecoin is a cryptocurrency similar to Bitcoin, which has gained popularity in the last year. It is also a subset of the original Litecoin, with the same goal of becoming a free-market alternative to the existing governments backed currencies. This is an open source version of the original Litecoin. The freedom that comes with the use of this cryptocurrency is one of its biggest selling points, but not many people really know what Litecoin is all about.
The first definition of Litecoin is "a peer-to-peer electronic cash system based on a distributed ledger." In essence, the concept of Litecoin is simply like any other electronic cash system. When we say electronic cash system, this means that transactions are recorded on a digital ledger, similar to how an account has a record of all transactions for purchases and sales, minus the involvement of third parties, such as credit card companies.
Litecoin is like any other financial system, except that it was first intended for individuals who didn't have access to a bank or credit card company. As such, it wouldn't be possible for them to use their card to make a purchase with their debit card, so they had to make purchases using their computer, which was connected to the Internet.
Litecoin began to see growth as a consequence of the rise of the Internet, which enabled the entire world to communicate instantly and convert information into currency. The Internet became the backbone of the world, allowing it to connect people worldwide without the need of paper money.
There is a lot of similarity between Litecoin and Bitcoin. Both of them are created on the basis of the concept of free markets, and unlike the governments controlled currencies, they don't require one to use a private banking network, which is quite expensive. The reason why these currencies aren't used is because they don't represent the interests of the people, which is the sole purpose of governments.
Definition of Litecoin As an open source currency is also similar to Bitcoin. These currencies were created from the original currency using an open source base. This is a good thing, because anyone can download the source code and verify it, and decide to build upon the code, thus becoming the creator of a currency of their own.
Definition of Litecoin as a cryptocurrency is also the same as Bitcoin. Cryptocurrencies are the most advanced forms of cryptocurrency, with no centralization of the economy and no individual control over the currency. Each and every transaction within the currency happen on the digital ledger, and so the currency is considered to be decentralized, yet not totally decentralized.
Definition of Litecoin The most important definition of Litecoin is that it is actually the predecessor of Bitcoin. People who are new to the world of cryptocurrencies might not understand exactly what cryptocurrency is, and they might not understand that Litecoin started off as a currency. Understanding the difference between the two is important, and understanding what makes Litecoin different from Bitcoin is equally important.
Created on Jun 02, 2020