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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LITECOIN VS ETHEREUM

Litecoins and Ethereums have given their own contributions to the cryptocurrency world. They have excited the finance world. When it comes to ranking, both of them have always appeared in the top 5 coins. They are extremely popular and have rocked most of the lives. 

ETHEREUM
Ticker: ETH
Current price: $168.60
Hashrate: 149 TH/S

 

HIGHLIGHTS – ETHEREUM
1. In January 2014, Ethereum was announced publically. 

  1. By the time August 2014 arrived, Ethereum hit 18.4 million dollars.
  2. In 2015 May, Ethereum frontier was released.

 

LITECOIN
Ticker: LTC
Current price: $73.87
Hashrate: 311.281 TH/s

HIGHLIGHTS – LITECOIN
1. In October 2011, Litecoin network went live. 

  1. During November 2013, Litecoin hits a $1 billion market. 

 

LITECOIN VS ETNEREUM

 

  • Differences between the projects carried out.

    LITECOIN: The creator of Litecoin is Charlie Lee. He made a statement long ago that if bitcoin is Gold, then Litecoin is silver. While he observed that the bitcoins were slowing down with respect to transactions which took a 10-minute block time, he decided to launch litecoins which were given a block time of 2.5 mins and boosted 56 transactions per second.

    ETHEREUM: The founder of Ethereum, Vitalik Buterin believed that blockchains could be used for more than just making a payment. He leveraged the technology and taught the world that, applications can be created THROUGH blockchains. 

 

 

 

  • Mining differences

    LITECOIN: The mining protocal a litecoin uses is ‘Proof-of-work’ or POW. Miners can use their computational powers to solve the puzzles put forward. The miner who can solve the puzzle gets a block reward. Mining pools are powered by the plants known as ASICs. Each litecoin pool can acquire more mining power by gathering more ASICs.

    ETHEREUM: Ethereum also uses the ‘Proof-of-work’ or POW but recently they have developed a new protocol called as ‘Proof of stake’ or POS. The miners will no longer be known as miners. They will become validators. The validators lock up a choice amount of coins. Then they will validate blocks. If they feel that a certain block can be added to the blockchain, then they can bet on the particular block. If the block is the right one, then they will be rewarded. 

 

 

 

  • Transaction fees

    LITECOIN: The transaction in this system follows the mempool method. The transactions can be picked up by the mine hunters and place it inside the blocks that have earned them the rewards. When the transaction is inside a block, the block is full. Hence, for every block they fill, they will be charged a certain fee.
    Litecoin fee: $0.05 per transaction

    ETHEREUM: The developers of ethereum does not imbibe transaction fee over the miners. The effort that computer or the network has taken and will take to further execute the transaction is known as a Gas Unit. These are recorded in the EVM in a coded form. The average fee paid by miners in a day is up to $0.105.
    The charges are between: $0.05 – $0.1

    Litecoin has a max supply of 84 billion coins. But unlike the Litecoins, Etheruem does not have a cap limit in the markets. It works in a more decentralized manner. Cap supplies do not exist for them which is a plus point for some investors. However, the block reward is low when Ethereum is compared to Litecoins. The total supply of Ethereum will never go out of control. 

 

 

Litecoin has exceeded the hashrate of 350 TH/S while Ethereum has exceeded 150 TH/S.

Litecoin has more than 20,000 transactions every day while ethereum has exceeded 700,000 transactions in a period of 24 hours. 

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