Strongest Cryptocurrencies and Litecoin
Many of the articles written in this new saga were written around Bitcoin, but we have also mentioned on several occasions the existence of other cryptocurrencies and it is likely that you have heard them at some point.
These are cryptocurrencies such as DarkCoin, FEDERCoin, Opalcoin, DigitalCoin, Next Coin, World Coin, among others. But the truth is that one of the strongest cryptocurrencies after Bitcoin is Litecoin alongside Ethereum. These coins came about for different reasons, but to better understand this phenomenon, it is best to analyze it in depth. It was, in fact, the year 2011 and then software engineer Charlie Lee was working for Google. When she knows all about Bitcoin and was totally fascinated. But of course, being software developers, they decided to join the project which, as we mentioned, is open source. He downloaded everything and started analyzing how it was programmed. That is, he analyzed the code that makes Bitcoin work. Undoubtedly, he was most impressed by the robustness of the project and convinced of the potential of cryptocurrencies. And his interest was so much that he decided to get more involved and at the same time he identified some aspects with which he did not agree. The way Bitcoin was created and how it works. That’s why he made the decision to write his own code based, of course, on the original. In fact, around the year 2013, he resigned from the excellent position that Google had to dedicate himself full time to the administration and promotion of its use. In this way, what many call Bitcoin’s little brother has begun to take shape, although this appellation is really more because it came about in a second instance, rather than because this cryptocurrency is less robust or less useful.
In fact, many users are preferring Litecoin over Bitcoin and the reason will become clearer to us. When we discuss other topics, the characteristics of both in the following slides. In the first instance, and as we mentioned, the limit of Bitcoin units that will enter into circulation and that will be created in total is 21 million. And while this is a desirable feature, as we saw in the first few sessions of the course, it is a necessary feature to be able to use something as a viable means of payment. Charlie determined that the amount was still too limited for the huge number of transactions that will potentially be carried out with these cryptocurrencies. After discovering that they reach their full potential. For the same reason, Charlie decided that for the cryptocurrencies he was creating, the unit limit would be much higher, leaving the number at an impressive 84 million units, with greater possibilities, as well as motivating Bitcoin users to also use Litecoin or even for people who have never used cryptocurrencies, opt for Litecoin. at first, of course, we will talk more about this in the following points in favor of Litecoin. As we mentioned, Charlie also dedicated himself to rewriting parts of the code that he didn’t agree with or that in his opinion could be improved. Therefore, it was identified that for Bitcoin it takes an average time of 10 minutes for a block of transactions to be confirmed and incorporated into the blockchain. This, of course, is something Charlie has identified as an area of opportunity and which coincides with many companies saying the time should be shorter, so Litecoin’s creator managed to reduce the verification time from 10 minutes to around two and a half minutes. average. Which, again, is an attraction for many actors looking to use cryptocurrencies. And by actors we mean both companies that want to allow their customers to pay with cryptocurrencies and therefore have more business, online and/or in their physical stores. But also by actors. We refer to people who do not have access to traditional financial services and who have seen all the advantages of using cryptocurrencies instead of traditional currencies. This is also very convenient for businesses, as when a customer makes a payment transaction, confirmation is achieved in much less time and therefore there is certainty that the payment has been made and recorded in the Bitcoin and Litecoin, respectively. Something that happened with Bitcoin and that we looked at very broadly when talking about it in the mining chapter is that it has now become very difficult for normal people to mine due to the complexity of the proof-of-work algorithm used by Bitcoin. The algorithm used is very robust and in fact the logic of this algorithm is identified with the code SHA-256. But precisely what is owed is that large groups or even companies that were created specifically to mine Bitcoin. They invested large sums of money in traditional computers or even chips specially designed and assembled to carry out the mining and, thus, be the first to confirm the blocks and have all the monetary units generated with the process. These groups have been so successful that it simply becomes impossible for other people to mine coins because we will never be able to invest thousands of dollars to acquire this advanced computer equipment. As we know this for a fact, which leads all of us who do not have access to this kind of monetary resources to buy cryptocurrencies from these large organizations. And of course, they sell them at a certain premium to recoup their investment. Charlie identified this weakness and even so many mention the injustice that has been happening with Bitcoin, so he decided to generate a different algorithm that should be used as proof of work and thus be able to mine liquidity. It is something that is not known as a scripting algorithm and it allows to level the playing field so that it is easier for anyone to mine liquid units and therefore more users are interested in getting cryptocurrencies and obviously using them. Which ultimately also causes its value to increase.
Charlie’s challenge gained even more strength when Warren Togami joined. And is that Warren is one of the founders of the Fedora project, in charge of developing the Linux-based operating system that bears that name and whose importance is enormous all over the world, so once again one of the reasons why people are increasingly featuring more Litecoin, and this cryptocurrency is backed by prominent members of today’s most respected organizations. And finally, as another point that may not seem as relevant as the previous one, but which is definitely worth emphasizing, as for some people it is a factor when making the decision to start using cryptocurrencies, is the fact that the Bitcoin creator has decided to remain anonymous and this raises suspicion in these people or even some authorities. And well, if you have the belief or these people believe that some scandal, for example, the news about the person or group of people who created Bitcoin can cause a decrease in the value of the cryptocurrency. In fact, the opposite situation can occur and when it is actually revealed who the creator or creators of cryptocurrencies are, their value increases.
But back to the main subject, we have that, as we have commented repeatedly, the creator of Litecoin clearly identified himself as Charlie. And is that he himself recognized it and in fact is proud of it. Of course, he grants interviews and spreads his knowledge so that anyone interested can use Litecoin or even participate in his project. And, of course, there are many people who feel more comfortable knowing this fact and therefore trust and use Litecoin instead of Bitcoin. Charlie is a visionary and we want to close this session with a phrase that he himself mentioned repeatedly and that shows the reach that cryptocurrencies will have in the world. And in general, in economics, he actually comments that he firmly believes that in the same way that the Internet revolutionized information, the power of cryptocurrencies will revolutionize the economy and traditional currencies.
Originally published at https://www.reddit.com.