A Cryptocurrency is a medium of exchange similar to USD or INR which uses cryptography method to exchange digital information. Different cryptocurrencies have been established using unique codes that have several levels of success. Bitcoin is the world’s first Cryptocurrency launched by Satoshi Nakamoto in 2009, which has open source code and can be modified and used freely by anybody for other projects. Similarly, Litecoin was launched in 2011 with the aim of being the equally popular and useful like bitcoin.
SHA-256 hashing algorithm is used by bitcoin that involves calculations accelerated in lateral processing whereas bitcoin uses scrypt algorithm which incorporates SHA-256 algorithm, but the calculations are much more sequenced than those of SHA-256 in bitcoin. Another difference between bitcoin and litecoin is of the speedy transactions. Litecoin is able to handle a higher volume of transactions than bitcoin because of its faster block generation. The demerit of this higher volume of blocks is that the litecoin blockchain is correspondingly larger than bitcoin’s that has more orphaned blocks.
The difficulty of Litecoin regulates which generates a block every 2.5 minutes on average, instead of the 10 minutes average of Bitcoin. The retarget block is 2016 in both Bitcoin and Litecoin, but since Litecoin blocks are found 4 times faster, the difficulty will retarget about every 3.5 days. Therefore, the total number of litecoins that come into existence is 4 times the total number of bitcoins. It is approximately around 84 million litecoins compared to 21 million bitcoins.
The market entry costs for Litecoin mining are cheap while the market entry costs for bitcoin mining becomes too expensive for most people. People become curious to check their confirm transactions in the blockchain which becomes more distended due to overuse. Clients using Litecoin will require 4x storage space than bitcoin running in the simple verification version. When many miners quit suddenly, computation power of the network curtails where block generation would reach the next difficulty level. This concern would be alleviated by faster retarget.
The state-of-art litecoin mining rigs appear in the form of personalized PCs that are fitted with several graphic cards. These devices are able to handle those calculations which are needed for scrypt and have approach to scorching fast memory that is build into their own circuit boards. The market capital for bitcoin is $10,467,596,650.78 and litecoin is $540,274,528.26.
Overall, bitcoin and litecoin do not overlap. A transaction is always unique. The inputs to create the transaction ID is partially based on the inputs which are being used to create the actual spend request in the chain, thus you will never have a collision between Bitcoin and Litecoin.