About Litecoin | Litecoin Сlub

About Litecoin


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Litecoin - cryptocurrency is created on the same principles as its prototype, Bitcoin. Like dozens of other more or less known projects built on the same basis, Litecoin fork called Bitcoin. Although technically the essence of this network is fairly simple money from many people she escapes, as is the case with other cryptocurrency.

How it works?

Figuratively Litecoin can be compared with gold, which is passed from hand to hand immediately and publicly:

1. As the total amount of gold, the total number Litecoin limited. Unlike most of the currencies in the financial system to create a new currency becomes more and more difficult.

2. The master of every owner kept only his because cryptocurrency - this is not the piece of paper and coins, is a sequence of bytes on a hard disk.

3. All transactions for the transfer and exchange of cryptocurrency encrypted recorded simultaneously throughout the network. So, we do not need a single guarantor, such as the central bank lLitecoin - guarantors generally the entire network.

As is the case with any other cryptocurrency, forming the basis for the total capital, which generally people have become digital calculation sequences for cryptographic algorithms. In the beginning, immediately after the establishment of Litecoin, these calculations were easy, so that the currency is actively "issued". But by the time as it was a lot and it became recognized as a means of payment, make new calculations become difficult. Ultimately create new Litecoin, like any other cryptocurrency become virtually impossible.

Protection and guarantees

The main distinguishing feature cryptocurrency Litecoin in general and in particular - it does not need guarantees from the particular organization: the state of the bank, a manufacturing company. Operations honest with her as much as honest a huge ad-hoc, that is, any error as any fraud is detected at the first attempt to make a transaction. Verification of the data works just as in the distribution of files in peer networks such as BitTorrent trackers. As is the case with torrents Litecoin anonymous transactions and to identify all the participants can not be the same as the entire Internet is impossible to control entirely - it would require a system superior to his power, and no such system.

The only possible breach in security - the so-called "attack 51%." It is theoretically possible situation in which more than half the members Litecoin will provide false information, which outweigh true for verification. However, in practice this is not possible, because for such a fraud would require a centralized computing power of modern supercomputers superior resources of tens of thousands of times.

Simply put, if someone hacked Litecoin, it would mean that it can also crack and any other financial system in the world. In practice, this is not feasible, so that users may consider its Litecoin cryptocurrency absolutely true. It is protected from depreciation, which is subject to any national currency: the central bank may simply "to reprint" the right amount of money, increasing their volume and reducing cost. With Litecoin is impossible in principle, as well as the political machinations.

The history of institutions and differences from Bitcoin

Charles Lee, the creator of the payment system Litecoin, made it clear that as the basis of the principles used Bitcoin and took this very cryptocurrency global basis. The project started in October 2011, while also using the service to users GitHub distributed client application with open source - the main tool with which users can establish e-mail accounts, send and receive Litecoin. It was later released and many other clients and utilities.

In the first half of 2013 Litecoin already out to the world level and unanimously recognized as the second most popular after cryptocurrency Bitcoin, but at the same time as the primary replacement in the case of Bitcoins depreciation or loss of confidence on the part of users. In the United States in November of the same year it was recorded a sharp jump in the capitalization owners Litecoin cryptocurrency increased capitalization in US dollars doubled in just one day.

By April 2015 the estimated rate Litecoin totaled about 1.4 US dollar, or about 70 rubles, and it is still the second cryptocurrency capitalization in the world, second only to its progenitor - Bitcoin. However, it should be noted that Litecoin originally conceived not as a substitute for Bitcoins, and their evolution and a logical extension, so that the new system has a few differences from the old:

1. Addresses the transaction referred to differently. The Bitcoin network, they consist of a different number of digits from 27 to 34, and start with a one or three. Online Litecoin they have a fixed address length - 33 characters. Start symbol - the letter L.

2. The complexity of the calculations have Litecoin is that one block of data is generated for about two and a half minutes. This is four times faster than that of Bitcoins, which allows you to receive confirmation of the transaction faster.

3. The total completion time transactions is about fifteen minutes, during which time the six blocks are generated.

4. Algorithmic restrictions allow to release the maximum amount of 84 million Litecoin-. This is four times greater than the maximum Bitcoins. Accordingly, the rate of generation of new "kriptomonet" halved every 840 000 units, not every 210 000, as is the case with Bitcoin.

5. Chronologically Litecoin later, but the rate of release and reward by balancing parameters are obtained the same as that of Bitcoin. It is predicted that by 2020 will already be issued ¾ of all Litecoin.

There are no fundamental differences from Bitcoin is not, as well as from dozens of other cryptocurrency. The only difference in the ratio parameters and, eventually, in the value.

Can I get my own?

Since Litecoin - it cryptocurrency, issuers are the users themselves. The unique algorithm is used for finding checksum, which confirms the validity of the transaction. For all service operations and is used for encryption, as is the case with Bitcoin, cryptographic function SHA256, recognized today virtually uncrackable.

Thus, more and more difficult to find new sequences and increase the volume of Litecoin. Using your own computing resources for this purpose is called Mining (from English «mining» - «Production", by analogy with gold). The user is required to use only the power your computer or network, and the rest happens automatically. The calculated data sequences sent to verify the network. The data that is tested, are included in the overall sequence, and the user receives adequate remuneration.

Even without going into the mathematical features of the process, it is not difficult to guess that the more data calculated from the total volume, the more Litecoin already "produced" and, therefore, to engage in mining is becoming increasingly difficult. As is the case with any other cryptocurrency to the time Litecoin was already quite popular and expensive cost, get it yourself has become very difficult, and the ratio of energy consumption to the result for a single user is no longer profitable. Specific figures: from the beginning of a reward for finding the new unit was 50 Litecoin, but when it was "extracted" is one of the maximum volume, the remuneration is less than 0.05 Litecoin. To date, the private mining is still possible, but it is unprofitable.

Members are two ways to increase computing power. Firstly, cooperate themselves and cooperating computing devices. Second, instead of using video processors CPUs. However, if in the case of superiority by twentyfold Bitcoin, when mining Litecoin speed above a tenfold.

Actual methods of preparing Litecoin

Since mining - an option unattractive to most people, there are a few ways to get lLitecoin:

1. Trading on the stock exchanges. Any exchange, recognizing cryptocurrency work with it just like any other financial asset. Customers who engage in trading on such exchanges are usually trace a new trend on the most active, instantly reacting Exchange Commission, at the same time leading the session to another exchange, not so quickly reacting. As a result, you can get an edge length of up to half a minute, and have time to close the deal at a profit. In fact, it is no different from the usual currency speculation, but in most cases, requires the confirmation of personal data.

2. To communicate the identification procedure, many users prefer the exchange of electronic currencies. This is an online service that offers to make a transaction with the transfer Litecoin the specified account and in return receive other e-currency. Of course, it is not free, and the commission per transaction higher than in transactions within the network Litecoin. Services conducting exchange Litecoin, very much, and users themselves choose who to trust and who not.

3. Many people, especially beginners, are sites known as faucets, that is, "cranes". They Litecoin literally given away for free. However, the amount is very small, and it is usually only for a beginner, yet does not know how to use cryptocurrency, learned how to do it. It should be noted that the global benefits of the activities of such sites also have: they are involved in an array of stirring Litecoin not allow hackers who hunt for personal purses, easily keep track of transactions.

4. Finally, no one has repealed the original function Litecoin - pay for various goods and services. Basically such a method is selected, when it is necessary to preserve anonymity and thus ensure best reliability transaction. From the banal human deception, of course, it does not protect, but any user will be able to take advantage of a variety of services, which store blacklists unreliable accounts and on which you can check the ID of the purse.

For many Internet users Litecoin much more attractive than any other e-currencies.

Are there any disadvantages?

Decentralization, anonymity, inability to recall the transaction - all distinctive features Litecoin, giving rise as a major plus cryptocurrency and the main disadvantage:

1. Purse - only an array of data on the hard drive. If it is lost or stolen, the owner permanently lose all means.

2. Anonymity often attracted to the tender and to commit transactions representatives of the criminal world.

3. Course litecoin not regulated by any banks or organizations, so it is much harder to predict.

Thus, investment in Litecoin looks overall very attractive, but the sharp fall of the reset the entire capital without the possibility of his return or compensate for - on this base their criticism of opponents cryptocurrency calling it a virtual pyramid. However, this area of ​​application cryptocurrency not diminished.

Use of virtual wallets for transactions

Created initially for the client application Litecoin not very convenient, so long ago, a host of applications and online services, each of which gives the user more options. Consider how this works can be an example of service coinwallet.co. This is a real virtual wallet, because it has all the features of a real purse:

1. You can create up to 50 addresses (the same that store different cards).

2. Purse storing user contact base.

3. Supports different types cryptocurrency, including Litecoin Bitcoin (because the purse is always possible to store various notes and coins).

4. Transactions can be performed not only on your computer, but also remotely as when using online banking.

Many users make the choice is in favor of such an instrument. This transaction protection remains at the same level, but the risk of losing everything at once greatly reduced. It is expected that the number of cryptocurrency in the near future will only grow, so it is likely the future of the virtual wallets and virtual exchanges.