Litecoin is a peer-to-peer cryptocurrency that offers faster and low-cost payments. In 2011, a former Google Engineer, Charlie Lee, created Litecoin from Bitcoin’s open-source code but with several modifications. Litecoin was touted as the “silver to Bitcoin’s gold” because it was developed to improve on the perceived shortcomings of Bitcoin. One of these shortcomings is that Bitcoin was becoming monopolized. This, in addition to the slow processing speed of Bitcoin transactions, led to the creation of Litecoin.
How Litecoin works
Like Bitcoin, Litecoin uses a proof-of-work protocol to secure its network. However, unlike Bitcoin, Litecoin processes transactions with faster speed – at 2.5 minutes, making it four times quicker than Bitcoin.
This increased speed was made possible by the less power-intensive alternative algorithm called Scrypt. Litecoin also activated its Mimblewimble Extension Block in May 2022, allowing users to protect transaction information.
Also Read; Top 5 Altcoins To Check Out In 2024
Guide to Litecoin mining (LTC)
1. Understand what mining is about:
Litecoin mining is done by solving complex mathematical problems that give you the right to record new transactions on the blockchain. Additionally, you have to consider the high electricity that LTC mining involves.
2. Get the appropriate hardware:
Having the correct devices to mine Litecoin is an essential part of the equation. To get the best from mining LTC is to get a dedicated Litecoin mining computer called an application-specific integrated circuit (ASIC). ASICs are designed to handle mining, thereby increasing efficiency.
3. Connect to mining software:
Mining software performs the hashing algorithm and communicates to the blockchain. At this stage, you have to be careful of the kind of mining software you choose because many may contain malware. In addition, you should pick the software best suited to the computer hardware you are using to mine.
4. Set up your wallet:
Next, you will need to set up a wallet to receive the rewards you earn from mining. Setting up a wallet will involve installing one compatible with LTC and inputting the necessary details.
5. Join a mining pool:
This stage is optional, as you can either join a mining pool or operate as a solo miner. If you decide to join a mining pool, as long as you submit a valid PoW, you are rewarded based on the hashing power you contributed.
6. Start mining:
After you have put everything in place, you can finally begin mining.
Looking ahead
Since the inception of Litecoin has remained one of the leading ten cryptocurrencies by market capitalization, according to CoinMarketCap. In addition, LTC is currently trading at $66, compared to its debut price of $4.30. Its growth and high ranking make it worthwhile to know how to mine it as a crypto token. Although it is an altcoin with a smaller market capacity than Bitcoin, it remains one of the most resilient cryptocurrencies.
In conclusion, the maximum number of LTC coins is set at 84 million, and almost 72 million have been mined as at the time of this writing. However, LTC is open to risks and regulatory issues like every crypto token despite its rapid growth and possibilities. Thus, for anyone interested in mining LTC, approach with caution and due diligence.
