Litecoin versus Ethereum

If you aim to invest in the stock market it is really important that you diversify your portfolio. If you have decided to invest in crypto currencies you need to have the better knowledge on how to get the best results. What is important to remember is that the crypto currency market is a very volatile one. This is perhaps the main reason why you need to understand the difference between Ethereum and Litecoin.

The biggest difference between Ethereum and Litecoin is that Litecoin was invented as a crypto currency with the intention that the transaction between two parties would be easier and the ambiguities would be removed while enhancing the efficiencies at a lower rate. On the other hand Ethereum is an open ended blockchain platform. It is designed to perform or operator on the basis of numerous systematic algorithms. In terms of history Litecoin was introduced way back in the 2011. On the other hand Ethereum was introduced in 2015 but has grown much faster than Litecoin. In case of Litecoin there is a limit of 84 million tokens. It is actually possible that in a few years there will be no new Litecoin. On the other hand Ethereum have no limits. This makes it possible to mine for a longer period of time. One of the major differences between Litecoin and Ethereum is the transaction fee. The transaction fee for Litecoin is actually lower than Ethereum. Where the Litecoin has 0.0 $4 per transaction rate Ethereum has a transaction rate of 0.85 dollars per transaction. Next is the block time .In this case the block time for Ethereum is much lower than Litecoin. Litecoin have a block time of 2 minutes and 19 seconds whereas for Ethereum it is just 15 seconds. This makes Ethereum much faster than Litecoin.

One of the major difference between Litecoin and Ethereum is that Ethereum is not purely transactional where is Litecoin is strictly a crypto currency. People can use Litecoin to conduct transactions. It can be mined for the sole purpose to serve as a digital currency. Ethereum on the other hand provides a network which is capable of creating smart contracts and funds for new projects. In terms of reward structure Ethereum awards 5 ether for each verified block whereas Litecoin awards 25 coins for every verified block. For mining both the platform uses proof of work algorithm for the mining process. However the algorithm which is actually used is different in nature.

It is not uncommon for people to think that both Litecoin and Ethereum are same or at least similar. However, when you are dealing with crypto currencies you need to do your research properly.  Find out exactly what you are dealing with. Basically if you solely want to make transactions it is better to go for Litecoin which provides low and consistent transaction fees. However if you want the ability to create streamline management functions and contracts, Ethereum is the way to go. If you want to know which is better in terms of investing, it is going to depend on your preferences and needs.

 

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