Today Litecoin and Ethereum (or simply Ether) are considered among the most popular crypto. Thousands of people are engaged in their production (mining), these electronic coins buy and sell at the cryptocurrency online exchanges. However, the high popularity of the two types of digital currency raises one question for inexperienced users: what is better – Ethereum or Litecoin. Initially, it may seem that the first currency looks much preferable to its “silver” collected, because for a long time it has surely held the second position right behind Bitcoin. But is everything so unambiguous? Let’s try to understand.
Advantages of Litecoin
Litecoin ‘s coins on the palm
Litecoin ‘s “silver” cryptomonets are not yet a very expensive digital asset, but despite this, they already have a whole set of advantages. Among them can be distinguished:
Higher life expectancy is how Bitcoin differs from Litecoin in the first place. The code of the Bitcoin network specifies the boundary volume of coins that can be released. It is 21 million. The potential of the Litecoins is also not borderline, but it equals 84th million, which is 4 times more.
Fast generation of blocks. If you push back on the question – which is better than Litecoin or Bitcoin – here too, the first crypto is superior to the second. A single BTC unit takes 10 minutes to produce, while an LTC unit is generated in 2.5 minutes. As you can see, there is also a four-fold superiority of “silver” coins. The second advantage would seem to offset the first one, and both types of coins must outlive themselves at approximately the same time. However, this is not the case, because Bitkoins are almost 3 years older than Lightkoins. The first was released on January 3, 2009, and the second crypto was published on October 12, 2011. So in any case, LTC coins will retain their potential longer.
Simpler mining algorithm – for mining Bitcoins it is necessary to build powerful farms. This is, to put it mildly, a costly occupation (today a competitive farm can cost between $4 and $70). In addition, it is not a fact that the collected equipment will be able to pay for itself, because the complexity is systematically increased, and the reward for blocks on the contrary – falls. And no one cancelled the sudden depreciation of these digital assets. As for Litecoin, one or two good video cards are enough for his extraction. You can mine “silver” coins even on a laptop, provided that there is a discrete board. Such mining is also attractive in terms of the fact that the user will not have to pay impressive receipts for light every month, as the power consumption will be much lower than in the case of Bitcoins.
Good scalability. In this plan Litecoin can be considered almost the best crypto. Her network adapts perfectly to any changes or improvements.
Fast transactions. Confirmation
The translation comes in about 15 minutes. This makes Litecoins a good tool for paying for purchases, carrying out a cryptoexchange and so on.
The safety of decentralization is an advantage that Bitcoin is gradually losing. Due to the increase in complexity, not only ordinary miners, but also entire pools are combined. Thus, one international network is gradually being established. Although Litecoin is an offshoot of Bitcoin, so far it maintains the principle of decentralization. Each individual miner continues to play an important role in the operation of the network.
Ethereum gold coin close-up
Among the main advantages of the second most popular crypto – Ethereum can be distinguished:
Unlimited issue. Bitcoin ‘s main competitor and the Lightkoin we are considering have a software cap on the maximum number of coins that can be issued. Air has no such restriction, which means, theoretically, it can maintain its potential always.
Stable remuneration. The Bitcoin and Litecoin networks have software regulation, according to which the number of coins in the block is periodically reduced by 2 times. At the dawn of formation, 50 coins were issued per BTC unit. Their numbers have now fallen to 12.5. Litecoin started with 50, too. Now 25 coins are given for the block. Such a principle is fully justified. Thanks to him, crypto does not peak its capabilities too quickly. However, these currencies have a limited issue and Ether does not. For this reason, the reward for the block remains the same. More specifically, it is 3 0.2534 0.03315 0.8 ETH. It may seem that this is not enough, but there is one nuance.
Incredibly fast block generation. To produce one BTC unit, you need to spend 10 minutes. In Lightcoin ‘s case, it takes 2.5 minutes. But at Ether the block is generated in 14-15 seconds. On the basis of rapid production, the following advantage can be distinguished.
High-speed transactions. By this parameter to compete with Ether can except that Dogecoin, here only the latter while without chances concedes on price. Quick transfers allow you to use Ether for purchases, transfer savings to other wallets, and more.
Ample opportunities of mining. It is possible to extract the given crypto on almost any video card (except integrated). Ideally, of course, it is better to use Radeon boards, although models from nVidia will give a good profile. In addition, Ether is extremely favorable to ordinary mainers. This crypto applies a hard hash memory algorithm (so-called Ethash). This algorithm makes it impossible to use expensive ASIC chips, which are actively used in mining Bitcoins. Thus, ordinary people have every chance to start earning from Ethereum mining.
Full decentralization. To this day, the functionality of the system is supported by each individual user. Of course, it is also characteristic of Litecoin, but it is Ether that is considered almost the most decentralized crypto of modern times
Special structure of network. Litecoin is a peer-to-peer payment system that uses the same-name crypto. The air is primarily a platform for applications that can be used in different areas of activity. The code on which the Ethereum network is written interacts with almost all programming languages. It is quite simple and open, so every developer can experiment with the system by adding some improvements to it. But the same-name crypto is only a side effect, not a fundamental component of the system. It is necessary to pay a reward to miners who support the functionality of the network.
Smart contracts are crucial elements of the system that give it more opportunities. Using Ethereum technology, a person can register all kinds of transactions using any assets. In order to carry out certain transactions, it is not necessary to undergo traditional legal procedures. Each individual contract is executed automatically when a predetermined condition is reached. This condition is a mathematical expression. Thanks to smart contracts, a person can create markets, keep registers of debt promises, transfer funds according to instructions laid down in the past. All this is done without any intermediaries and counterparties.
Lightcoin coin stands on a rib
Now let ‘s talk about the downsides of the crypto under consideration. With regard to Lightkoin, the following shortcomings can be identified:
Quite a meagre selection of wallets. This moment concerns software clients (especially when compared to the number of repositories for Bitcoins). You can create an online wallet on almost any stock exchange.
Irrevocable loss of funds when your wallet is hacked or your password is lost. To be fair, this flaw is common to all cryptocurrencies, and Litecoin is no exception.
Unpredictability of a course. In this regard, Litecoin can be considered one of the leaders. Despite the fact that the overall dynamics of the exchange rate is positive, it is very risky to invest in this currency.
Lightning passes through Ether icon
If you rely on the information above, you can think that Ethereum is almost the best crypto that has long been supposed to push Bitcoin out of the first place. However, she has her flaws:
Increase the time for production of standard rewards. This is due not to an increase in complexity, but to an increase in the popularity of mining. The more capacity involved in the operation of the system, the less reward an individual will receive. Rather, it will receive the same award, only more time will be spent on its production, unless, of course, the equipment is upgraded (purchase of a more powerful video card or additional fee).
Gradual reduction of the number of video cards suitable for mining. Only the video memory of the circuit packs is involved here. The fact that when mining Aether in memory of video card is loaded so called DAG file. He ‘s needed for the calculations. It would be nothing, but the volume of this file is constantly growing. Already today for normal production of Ether it is necessary boards with memory not less than 3 GB, and it is better to take models on 6 GB immediately.
Relatively early activation of the Difficulty Bomb. This concept means running a software algorithm in which the system moves from the PoW principle (proof of performance) to the PoS principle (proof of share). This software algorithm is called Casper. After the transition happens, Aether ‘s mining will lose any meaning. The system will begin to create blocks for token owners in the blockchain, which means that miners will not be needed.
What ‘s better than Ethereum or Litecoin: which currency to give preference to?
Lightcoin silver emblem and Ethereum dark emblem
Although Ethereum has more advantages and all of them are significant, it is not necessary to give this crypto an unconditional preference. Both digital resources must be used, but for different purposes.
So Ethereum or Litecoin:
Lightcoin is recommended to be used for purchases, as well as when exchanging for other electronic money. This asset is famous for the high speed of transactions, so the process will take place quite quickly. It is not necessary to apply this currency for future accumulation (at least for now). It ‘s better to let her in right away after collecting a certain amount.
It ‘s better to collect air. Yes, translations of this resource also differ in solid speed, but not in it. As mentioned above, over time, the “Difficulty Bomb” is activated, which, if nothing changes, will put a cross on the mining of Etherium. This crypto will become more scarce, which means that its price will increase. Very soon the price of Ether can reach the mark of a thousand dollars (and this is despite the fact that so far the emission is going the usual course). It can be reasonably assumed that after the launch of the new algorithm, the cost of the resource will increase by a factor. So for now, it ‘s best to accumulate the Ether by mining. For at least six months, this mining method will be relevant.
If you care about the degree of security, then both currencies hold a high bar. Breaking into Ethereum or Litecoin networks is, of course, possible, but unlikely. Loss of accumulated funds can occur either due to the fault of the owner himself (for example, a person forgot the password from the wallet), or as a result of a hacker attack on the exchange where the savings are stored, or directly on your PC with a software client.
Litecoin vs. Ethereum Reddit
Ready to continue the discussion on Reddit? Here are some Reddit threads with other opinions on the Litecoin vs. Ethereum discussion: