Litecoin-Wiki.com: Difference between litecoin and bitcoin

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DIFFERENCE OF BITCOINS AND LITECOINS


SCRYPT VS SHA-256 MINING

For proof of work, Bitcoin makes use of highly parallel SHA-256 hash function; therefore mining Bitcoins is very parallel task. Litecoin makes use of scrypt which is difference from SHA-256 for its proof of work. The hash function of the scrypt makes use of SHA-256 as a subroutine; however, it works based on fast access to huge amounts of memory instead of depending on arithmetic operations, making it somehow complicated to operate many scrypt instances in parallel by making use of ALU of a modern graphics card. This also means that the expenses on manufacturing of specialized scrypt hardware known as ASIC, that is more expensive than SHA-256 ASIC. Since there is much RAM in the newly created GPUs, they tend to be useful in mining Litecoins, but the improvement over CPU is not significant than it was for mining Bitcoin.

PROS

• The market entry price for mining Litecoin is cheaper, anybody that has a computer connected to the internet can engage in Litecoin Mining for profit making and sustaining Litecoin network. CPUs can as well be used to mine Litecoins, albeit works more than recent GPUs. The cheap market entry cost means a non centralized mining power.
• There is a danger that some people can make huge one time investment in ASIC, and centralize mining of Bitcoin network, meaning that market entry costs for Bitcoin turns to high for some people. The scrypt algorithm made used by Litecoin ensures that much memory is needed for a hash attempt.

CONS

•Attacks by botnets can occur if a botnet operator operates an unmodified Litecoind so as to gain coin then such botnet attacks the computers that it controls, not the Litecoin itself, as the Litecoin network strengthens. But the objective of cryptocurrency is to enhance the world rather than itself. Botnets with huge portion of the total hash power can also attempt double spending attacks on the Litecoin network.
•The resale worth of GPUs/CPUs means that miners do not have stake in the system, leading to greedy miners that engage in attack against network are linked with Litecoin than Bitcoin.

FASTER TRANSACTION TIME

The difficulty of Litecoin is adjusted so that blocks are generated in every 2.5 minutes averagely, instead of 10 minutes Bitcoin average time.

PROS

•Many people can't wait to see their transaction cleared in the block chain earnestly.
•Greater granular, just like a merchant that intend to accept transaction with two confirmations in Litecoins approximately 5 minutes, while Bitcoin will have to wait for about 10 minutes for a single confirmation
•Time and variance that are less expected until miners are rewarded. Just like a network consists of 1000 miners where they all have the same hash power than a single miner to be rewarded after 1000 block averagely, but waiting for 1,000 blocks is four times quicker in Litecoins than Bitcoins. This means it is easy to sustain a relative minimum mining pool with Litecoin, so Litecoin potential is more decentralized than Bitcoins.



CONS

•More overhead, meaning that block chain turns bloated. Clients operating in simple verification mode will be mostly affected: in simple verification mode the client's only stores the block headers and current wallet result, hence, more storage capacity will be needed for Litecoin clients compared to Bitcoin clients operating on the mode.

DIFFICULTY RETARGET

The retarget block is year 2016 for both Litecoin and Bitcoin, but due to the fast rate of Litecoins x4, the difficulty will retarget per 3.5 days.

PROS

When the computational power decreases in the event that miners quits suddenly, block generation would be slow until the next difficulty adjustment.

CONS

•Shorter retarget window may result to non stable difficulty adjustments.
•Unstable difficulty might boost chain hopping
•Less security from hackers that depend on lowering the difficulty.

CONCLUSION

One possible way to examine Litecoin is to class it as silver to Bitcoins gold, in some cases that it is a less vulnerable crypto currency that is easier in transacting with and obtaining.
•Transactions are x4 faster than Bitcoins, exchanging for less conservative and possibly weaker security guarantees.
•CPU or GUP mining means that obstacles to join Litecoin mining market are cheaper compared t Bitcoin mining.
•The total amount of Litecoins is x4 higher than the estimated amount of Bitcoins.


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