Let’s talk about Litecoin today as it is one of the favorite currency of the investors and for them.
Litecoin whose abbreviation is LTC or Ł is a peer-to-peer cryptocurrency and open source software project released under the X11 license. Creation and transfer of coins are based on an open-source cryptographic decorum which is not managed by any dominant authority. The coin was created by Charles Lee, a former employee at Google in 2011. LTC is inspired by, and in technical details are close matches to Bitcoin.
Litecoin is created to serve two main purposes:
- Securing the network and verifies transactions.
- New Litecoin is paid out as a reward to miners.
Litecoin Mining Hardware
The Litecoin mining industry is less developed than Bitcoin’s so there is a lot of opportunities for investing in such a promising digital asset which would give powerful ROI. ASICs—powerful computers designed to solve Bitcoin’s proof of work function—are available for litecoin but difficult to purchase. Because Litecoin uses a different proof of work function Bitcoin miners cannot mine litecoins.
The best LTC mining hardware available is graphic cards, but they are very less profitable. If you are serious about mining LTC, one option is to simply mine bitcoins with hardware like the Antminer S7 and convert the earned BTC to LTC. You can call Block Labs for complete product understandings.
How Litecoin Mining Works
Like Bitcoin mining, Litecoin also uses proof-of-work.
In order to send LTCs, transactions must be included in a block. LTC miners then verify these transactions through proof-of-work. The miners check incoming transactions against previous transactions on the blockchain. If no double-spends are detected, the miners create a block with new transactions and add it to Litecoin’s existing blockchain.
Each new block is then sent to nodes on the network. The nodes use the miners’ work to continue to verify and transmit transactions across the network.
As mentioned earlier, LTC mining requires vast amounts of time and electricity, which isn’t cheap. The block reward is paid to miners for each block mined, which provides an incentive for miners to contribute their hashing power to the network.
What is the Litecoin Blockchain?
The Litecoin blockchain is again a public ledger of all LTC transactions. Contrasting traditional payment systems like PayPal, LTC is basically distributed and mainly decentralized. Its public blockchain can be independently verified by anybody.
No single recorded transactions can be removed; no counterfeit or fraudulent transactions can be created without the network consensus. Any attempt to change network rules would create a fork in the blockchain.
What is Litecoin Mining Difficulty?
One of the main benefits of cryptocurrencies is that the currency supply can be automated and circulated at designated intervals. This varies from gold, silver and other commodities which frequently see mining businesses mine at faster rates if price upsurges.
The Litecoin mining difficulty is possibly one of Litecoin’s most important features. It is an algorithm that is simplified founded on total network hashing power to safeguard that LTC blocks are produced on an average of every 2.5 minutes.
Cryptocurrencies like LTC are different. No price rise can cause an increase in the rate at which litecoins are mined. A sudden increase in Litecoin’s price would likely cause more miners to point hash power at the network. Unlike gold, however, Litecoin’s difficulty ensures that the new hash power would simply be balanced with a rise in the difficulty of the proof-of-work algorithm. The difficulty is adjusted every 2016 blocks, which is about 3.5 days.
Litecoin Mining Profitability
You can use one of the many LTC mining calculators to determine the potential profitability of hardware. Litecoin mining profitability will depend on the price of litecoin, hash power of your hardware, electricity costs, and hardware efficiency.
Litecoin Block Reward
Originally, 50 LTCs were issued in each new block. Litecoin’s block mining reward halves every 840,000 blocks, the coin reward is 12.5 coins per block now.
Litecoin mining is actually done by specialized hardware which is mainly available at Block Labs at most competitive rates