On April 26, CNBC published an interview with Charlie Lee, founder of Litecoin (LTC), who discussed the fundamental differences between Bitcoin and Litecoin.
Is Litecoin better than Bitcoin?
First of all, it is relevant to understand where this cryptocurrency was born. Litecoin is a crypto that was created by Charlie Lee in 2011 and, in fact, shares many similarities with Bitcoin.
In fact, it is based on the original source code for Bitcoin. However, Litecoin was designed with the aim of reducing transaction costs and also to be more efficient in daily use. So, although they share similarities, Charlie Lee seeks to highlight their differences that, according to him, position Litecoin over Bitcoin.
Let’s start with that the fundamental difference between Litecoin and Bitcoin is that LTC employs the newer Scrypt Proof-of-Work (PoW) algorithm compared to Bitcoin’s SHA-256. Hence, the Litecoin developers chose this algorithm as it is less susceptible to ASIC mining.
But, in addition to that, Lee ensures that Litecoin has faster confirmation times. In this sense, he explained that “It is also faster, it has more coins than Bitcoin, it has four times as many coins and it is also four times faster. So Bitcoin transactions occur every ten minutes, Litecoin transactions occur on average every two and a half minutes.
What is the appeal of LTC?
According to Lee, one of the most attractive propositions in Litecoin currently is its low fees. As we have reported in CryptoTrend, transaction fees in Bitcoin have increased significantly and this is due to network congestion.
Thus Lee explained that «The Bitcoin blockchain is full. Every time a block appears, the transactions use the entire block. So because of that everyone is racing to get their transactions on the next block. So the way they do it is to compete by paying more fees… so miners will choose the transactions that pay the highest amount… ».
However, according to Lee, this is not the case with Litecoin as it has a higher “bandwidth” and therefore less congestion.