How it works Litecoin? | Litecoin Сlub
 
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How it works Litecoin?

How it works Litecoin?
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The reliability of all the information is confirmed on the network using a cryptographic algorithm - this Litecoin indistinguishable from standard payment systems. However, there is a server that stores a reference to the sample database - instead, the database is distributed as a single file through the P2P-network as a regular torrent. So everyone who enjoys Litecoin, stored at the disk copy of the file. Synchronization is performed when connecting to the network client software and goes online. Until then, until we get confirmation of the timing, the system will not allow the user to make transactions. Well, since there is no centralized repository, no one can hack to steal or distort information.

When one of the participants in the network acquires or spends Litecoin, information about it is added to a common base. It is encrypted so-called public key. This means that the owner of the wallet can confirm their ownership of money - that's what he does when connected to the network, not only manually, using an encryption algorithm. At the same time reverse transcript is impossible: it is impossible according to the information contained in the database, determine who is the owner of the purse. This is based anonymity network.

Quite expectedly two technical inconveniences that arise from the foundations of the system:

1. The more time passes, the greater the size of the file that you want to keep on your drive.

2. If the user loses access to the file or the file is lost with its unique information (the "lost wallet"), then he received Litecoin continue to take into account the system, but to use them, no one could, because, as already mentioned, it is impossible to conduct a reverse decryption.

Theoretical vulnerability Litecoin - the so-called attack is 51%. This means that if someone is able to take over computing power, is more than half of the entire network, it will have the opportunity to confirm the false data, presenting them as true. However, in practice, it is not necessary to be afraid of. Firstly, to take over this capacity is extremely difficult. Secondly, 51% - it is not 100% or even 99%, therefore divergence immediately noticeable and would not be left unattended.




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