Bitcoin being the foremost cryptocurrency gains a lot of attention among investors and people globally. After all, it is the only digital currency that paved the concept for cryptocurrency. Following the popularity of Bitcoin, many other alternate currencies too started joining the crypto brigade. Some failed and remaining survived. Now Bitcoin, even though much popular do not remain the only centre of attention. Because there are altcoins like Ethereum and Litecoin that ranks among the best cryptocurrencies. If you have been regularly following the latest news on Ethereum, then you will know that this altcoin ranks second to Bitcoin. Litecoin too cannot be underestimated, as it ranks seventh in the row. However, our main focus is not on Bitcoin, as today we will be highlighting some similarities and differences between the Ethereum and Litecoin.
Before we head on to know about what’s common and the difference between these two alternate currencies, let us know the backgrounds of these two major altcoins, briefly.
We will be knowing the difference between Litecoin and Ethereum, but first, let us have some clear understanding of Litecoin. If you are abreast with Litecoin news today, then you will know that Litecoin came into existence when it was launched by engineering expert, Charlie Lee in 2011. The idea of launching Litecoin comes from Bitcoin and is known to be the hard fork of the original Bitcoin protocol. According to Charlie, if Bitcoin is being termed as gold, then Litecoin can be said as silver. The motive behind the development of Litecoin was to serve the purpose of payment mode or as a decentralized store. Another main reason for the launching of Litecoin is to work upon the shortcomings of Bitcoin, mostly related to transaction speed. This altcoin fares better than Bitcoin with faster quadruple mining.
As mentioned above, Ethereum ranks closer to Bitcoin. It can be explained as an open-ended blockchain platform based on various algorithm computation, where the creation of its operational currency, Ether takes place. Just like Bitcoin and Litecoin, Ethereum too was the innovative idea of Vitalik Buterin. He came up with the idea of launching Ethereum to be served both for developers in creating applications and as a mode of payment.
Difference Between Litecoin And Ethereum
Coming back to our main subject, which is centred around the similarities and differences between Litecoin and Ethereum. So let us begin with differences. The first difference between Litecoin and Ethereum is that Litecoin is a mode of payment and a substitute for Bitcoin. Moreover, it is the fork of the latter cryptocurrency. Ethereum, contrary to Litecoin, is understood as a smart contract which finds its best use in the development of DApps. Where the transaction fee of Litecoin is around $0.04, Ethereum on the other side has a $0.85 transaction fee.
Another major difference between the Litecoin and Ethereum is the timing. The block timing of Litecoin is 2.5 minutes, whereas, Ethereum’s block timing is 15 seconds. Ethereum in comparison to Litecoin is preferred for long-term applications. This is all because of its potential for developing multiple features, transferring value, and data storage.
Litecoin was developed much earlier to Ethereum in the year 2011. Whereas the latter altcoin (Ethereum) was launched in 2015. Ethereum fares over Litecoin in terms of crowdsourcing funds for fresh projects. One notable difference between the Litecoin and Ethereum to note is having a cap that enables the release of multiple coins. It is because once it is reached, then there won’t be any flow of fresh coins in the system. Ethereum on contrary to it comprises a unique model, where every year, there is a flow of the number of similar coins in the system.
Similarity Between Litecoin And Ethereum
After knowing much difference between the Litecoin and Ethereum, now let us notice the similarity between these two altcoins. Now, when it comes to the similarity between the Litecoin and Ethereum, then both these coins share a common factor, which is speedy transaction time, which is hard to notice in Bitcoin. Both Litecoin and Ethereum make the best use of the POW (proof-of-work) tool and are supportive of smart contracts. Both of these alternate coins have the advantage of being traded on multiple crypto exchanges.
Now after understanding the similarity and difference between Litecoin and Ethereum, this must-have raised confusion in whether to opt for Litecoin or Ethereum. According to the above-mentioned facts, Litecoin was established before Ethereum. This enhances its utility more than the latter coin. But underestimating Ethereum over Litecoin also does not seem good. It is because Ethereum serves the dual purpose of being a mode of payment as well as serving as a smart contract platform. However, in terms of regular transactions, Litecoin seems to be a much common choice among retailers. Now there might be pros and cons in both currencies, still, both are worth for investment.