Overview of Litecoin
Litecoin was developed by Charles Lee and launched to address the perceived shortcomings of Bitcoin. It is a peer-to-peer cryptocurrency that enables fast transactions at low rates. Litecoin differs from Bitcoin in its Proof-of-Work consensus and total supply of 84 million. The project aims to boost transaction throughput and prevent LTC from becoming overly rare and costly.
How to Analyze a Crypto Project Properly
To select a preferred project, you need to explore two major metrics: technical analysis and fundamental analysis. Technical analysis predicts future market trends based on patterns in market data. Fundamental analysis examines a project’s financials, real-world utility, user community, and team. This article focuses on the fundamental analysis of the Litecoin project.
Overview of the Litecoin Whitepaper
Litecoin emerged as an open-source client on GitHub in 2011. It confirms blocks of transactions every 2.5 minutes and uses a different hashing algorithm than Bitcoin. Litecoin became the first of the top 5 cryptos by market cap to adopt Segregated Witness. Charlie Lee, an MIT graduate and former Google engineer, created Litecoin and currently serves as the managing director of the Litecoin Foundation.
Litecoin Tokenomics
Litecoin uses the proof-of-work (PoW) distribution method and relies on mining activities to create new coins. It has a circulating supply of 73,293,783 LTC, a maximum supply of 84,000,000 LTC, and a current price of $104.90. Litecoin goes through a halving process every four years, with the next scheduled for August 3, 2023. The halving process affects LTC supply, inflation, and value.
Use Cases and Competitors
Litecoin serves as a medium of exchange and a store of value. It faces competition from other blockchain projects such as Bitcoin, Ethereum, NEO, and Monero. These projects are considered competitors due to their shared proof of work consensus mechanics.
Hot Take
Litecoin, with its focus on fast transactions and low rates, has positioned itself as a viable alternative to Bitcoin. Its adoption of Segregated Witness and upcoming halving process further contribute to its appeal. However, it will face stiff competition from other established blockchain projects in the market. Keep an eye on Litecoin’s developments and overall market activity when considering its potential as an investment.