Homework Task Season 2 week1 for Professor @yohan2on | Altcoins|

Introduction to Litecoin

Litecoin cryptocurrency is another type of virtual coins, an electronic type of peer-to-peer payment system. This is another fork of Bitcoin, compared to othercoins, it has minor differences compared to its predecessors. This coin is used to exchange social services, and to pay for products or services in any trading centers that accept virtual money.
The system was created by the former employees of Google, Charles Lee, in 2011, and already 2 years later it was positioned as an alternative to the affordable Bitcoin. A distinctive feature of the fork is open access to the source code, which makes it possible to change or copy the software to anyone who wants to.
The most initial increase in the Litecoin rate took place in 2013, and the capitalization was about $ 1,000,000,000. 4 years later, it showed a constant increase, starting in March and reaching its peak in December, when the cost of Litecoin became more than $ 350 per coin. After negative news from China about the prohibition of the cryptocurrency exchange in November, there was a slight collapse in prices, and then the price rose again.

source

Virtual coins run on a client program that is open source and has access to the GitHub portal. Another software model is 0.14.2. possesses quality characteristics of reliability. Can be combined with SegWit. For the first time, this virtual coin began to work with this protocol in 2017, which caused the rate to grow by almost 10 times.

Basic Features that makes Litecoin diffrent from where it was forked from (Bitcoin)

1. Addresses. In Litecoin, manipulations are carried out using an address based on an identical principle - using 2 types of keys. The difference is in the number of characters. Thus, for Litecoin, this number reaches 33 and it starts with a "three" or "L" letter. In Bitcoin, this number is in the range of 27-34.

2. The speed of operations. Miners know that it takes about 10 minutes to prepare blocks in Bitcoin. In Litecoin, this characteristic is 4 times less and reaches 2.5 minutes. The manipulation is completed after another 6 blocks have been closed, that is, after 20 minutes. Once SegWit occurs, manipulations can take place very quickly.

3. Atomic manipulations in the network. In the fall of 2017, for the first time, atomic manipulations were carried out among Litecoins and other cryptocurrencies

4. Block preparation in Litecoin is done in the same way as in Bitcoin. Any further detail in the chain has a hash of the existing block. The difference is the hash lookup option. When compared to Litecoins, Scrypt is used.

How Litecoins work

To work with the Litecoin system, an open source code is used. It is licensed - MIT / X11, used officially.

However, what is this license? In fact, it can open free access with extended functionality for all participants in the system. That is, any users can, at their own discretion, modify, create a copy for distribution, and correct the copy of the software.
Almost any cryptocurrency transaction involves a pre-opened Litecoin wallet. This is a special place, which you can call the storage of cryptocurrencies for a while. With the help of it, any guest can always view any current or ongoing transactions, and check the balance of money in the wallet.
But when logging into the wallet, the system requires users to enter a password by all means. This password can be requested when performing various manipulations with coins.

Advantages:

When discussing what kind of Litecoin currency, you need to look at its advantages:

1. The presence of better scalability makes it possible for cryptocurrencies to replace fiat funds that were used to pay for goods.
   The generation of a single block takes place faster - in 2.5 minutes, which can simplify the mining procedure. In addition, the algorithm for extracting virtual currencies is easier, and it does not need a strong investment in the acquisition of equipment.
2. Litecoin can run on any storage in demand today.
3. Less electricity is consumed and mining costs are lower.
4. The Litecoin cryptocurrency is more flexible and easier to change.

Disadvantages:

1. It is necessary to improve the protection system against possible manipulations
2. Not as famous as Bitcoin
3. Subject to surges like other cryptocurrencies.

Conclusion:

Today, the Litecoin cryptocurrency is considered a promising medium for financial exchange on various exchanges, including the binary options market. But for every investor,It is advised to always do further research

Thanks to Prof @yohan2on