This article was prepared to show the difference between Ethereum and Litecoin. Lets start with Ethereum.
What is Ethereum?
Ethereum is a public blockchain that allows developers to build decentralized applications (dApps) on it. Like the Bitcoin blockchain, Ethereum has its own coin or currency. This is called Ether (ETH). Many people misuse the term Ethereum to describe both the currency and the network itself.
At the moment, the Ethereum network is protected using the PoW (Proof-of-Work) protocol. It’s just like Bitcoin. PoW requires modern computers to solve complex mathematical problems to validate transactions.
Ethereum can be used like Bitcoin, that is, as a traded currency. It can also be used to pay for items. However, unlike Bitcoin, Ethereum can be used to create specific functionality in dApps. For example, when creating a token on the Ethereum blockchain or using a smart contract, a developer or user must pay a commission in Ethereum (ETH).
Ethereum network capabilities
All applications (for example, Bitcoin) running on decentralized Blockchain technology are completely autonomous and exclude human or organizational intervention. Changes to the Blockchain can only be made with the consent of all network participants. All actions or transactions are final and will not be reversed.
When creating Ethereum, the difficulties encountered by developers when working on a pure blockchain were taken into account. Any centralized systems and applications can be decentralized using Ethereum. The simplest examples are the issuance of loans and borrowings, the voting process, and intermediary services. Once again, no one can make changes to completed actions, not even the creator of the application. This excludes any corruption and fraud.
We will continue with the definition of Litecoin
What is Litecoin?
Litecoin is very different from Ethereum. It has much more in common with Bitcoin than Ethereum.
Litecoin is a true digital currency. Unlike the Ethereum software platform, Litecoin does not have a second tier for application development. Thus, its only purpose is to use it as currency.
Like Bitcoin and Ethereum, Litecoin is a peer-to-peer network and completely open source. This means that anyone can download the code, connect to the network, and mine Litecoin.
History of Litecoin
In October 2011, an unknown blockchain developer Charles Lee set himself the goal of “improving” bitcoin, which already had a large number of negative reviews from users at that time.
Since Bitcoin has suffered from slow processing times and high transaction fees since its inception, Charles Lee decided to fix all of these problems by creating an “alternate version of Bitcoin” called Litecoin.
Immediately after the launch, Litecoin had fairly good security and performance indicators not only of individual nodes, but of the entire system as a whole. This gave the cryptocurrency the second place in the Coinmarketcap ranking.
With this overview, Charles Lee has created a unique peer-to-peer network for transactions of all sizes.
Litecoin and Ethereum: Technology Comparison
Litecoin and Ethereum are very different blockchain projects. As I said before, Litecoin is a payment system that is very similar to Bitcoin, but faster and cheaper.
Meanwhile, Ethereum is a decentralized computer system with its own programming language. This allows developers to build decentralized applications using smart contracts.
What to use for payments?
Since the block generation time is much shorter, it seems that Ethereum is making transactions faster than Litecoin. However, this is not always the case. Since Ethereum is a much more complex system with many more transactions per second, the network can be filled more easily.
Since the Litecoin blockchain only stores payment data, users are less likely to experience delays in making transactions. However, it will be slower than Ethereum if no blockchain is heavily used that day.
However, it makes sense to use Litecoin for payments, as Ethereum is being used to develop potentially world-changing applications. Thus, giving developers the opportunity to experiment on the web is a good idea.
Now you have some understanding regarding difference between Litecoin and Ethereum and what each of the projects is.
So what do you think is the future of Litecoin and Ethereum, thanks to your new knowledge? Be sure to let me know in comments!