The digital currency litecoin is the fork of the crypto currency bitcoin. Lightcoin was created in 2011 and even despite the fact that the virtual currency exists relatively recently, has become one of the most popular.
What is Litecoin?
To fully understand the crypto currency, litecoin began to develop independently. Now it has already become quite widespread, although in Russia it is still not well known. We will fill this gap.
These electronic money have their own unique properties. For the designation of lightcoins (Litecoin), the abbreviation LTC is most often used. Interestingly, the creators of light-wallets immediately opened the code of their software, which gives them an unprecedented level of transparency, allowing them to check how they work for all who want to do it. Among those who are actively engaged in electronic mining (generation and accumulation of crypto-currencies), the opinion has been established that bitcoins are an electronic analogue of gold, and lightcoins are silver respectively.
According to experts, the market of lightcoins is very stable, many electronic exchanges exchange them for bitcoins without problems. More and more users want to start doing litecoin and they are no doubt wondering what the difference between this crypto currency and bitcoin is.
Differences Between Litecoin and Bitcoin
- One of the differences is that when the lightboxing is mined, the CPU is more efficiently used, and the generation by the GPU is not so effective.
- Another important feature is that the frequency of lightcoin generation is much higher than bitcoins, the time interval is only 150 seconds. Thanks to this and the confirmation of transactions occurs much faster.
- With the advent of ASIC-miners, the extraction of both types of crypto-currencies was significantly hampered, and to a greater extent this affected the mining of lightcoins, for the effective extraction of which, very large amounts of memory are required.
- The payback of lightcoin-miners integrated into websites is much faster than for bitcoins. This is explained by the fact that for effective action of bitcoin miners, free access to the GPU is required.
- High indicators of the generation of lightcoin blocks allow the client to remain in the verification mode for longer time periods than the clients of bitcoins on the PC, especially with insufficiently efficient processors.
- It is important that the purses of lightcoins provide opportunities for mining, both in the pool and SOLO, which opens up a number of additional opportunities for users.
- The weak point of lightcodes is that their rapid generation opens up good opportunities for some abuses, such as posting double charges. Experts believe that, on average, compared to bitcoins, similar schemes with LTC are implemented 4 times easier.
- The frequency of recalculating the complexity of lightcoins is 3.5 days.
- On the Internet, there are 84,000,000 lightcoins, that is, four times as large as bitcoins. When generating new blocks of crypto currency, there is a significant reduction in the amount of compensation after every 880,000 units.
Similarities Of Cryptocurrency Bitcoin and Lightcoin
There are a lot of similarities between these virtual currencies, which is not surprising, since bitcoin and litecoin are crypto-currencies, and were originally created on an identical basis.
- A single method of obtaining, called “mining”.
- Absence of any external control for LTC and BTC, decentralization of the network.
- Algorithmic emission limitation.
- Complete anonymity of possession of funds, as well as their disposal, including the implementation of transfers.
- Unable to cancel the action.
- The ability to store crypto currency in special purses, which are elements of the network.
What Is Litecoin Mining?
Extraction of currency consists in carrying out by a computer of the user of a series of calculations. They are needed to interact with the litecoin electronic payment system. To start the process of generating and accumulating crypto currency by the method of mining, it is necessary to install on your computer and run a special program called “miner”.
The size of earnings here can be very decent, but it will directly depend on the type and performance of the video card, since it performs all operations. Experts say that ATI video adapters are better than others for this. They provide the largest income.
Therefore, before proceeding to the mining, you will need to purchase a good computer, necessarily with a high-quality and high-quality graphics card. However, for extraction of lightcoin, you can use a CPU instead of a video adapter, but this method is much less efficient and does not promise good earnings.
After the computer is purchased or upgraded with a focus on mining, the video card is installed and working normally, you can proceed directly to earn a crypto currency. You need to do the following:
- Install a wallet of type litecoin-qt on your computer. It’s very simple, the whole process of searching, downloading and installing takes a few minutes. Preferably, from all existing versions of the wallet (there are several), choose the most recent one, since it is most convenient in operation.
- It is necessary to download and install the program-miner. There are several ways for this, but the easiest way is to go to the appropriate link. As mentioned above, in the absence of a suitable video card, it is possible to extract lightcoins through the processor, but in this way it is not possible to earn a lot of crypto currency. For a decent income you need a productive video card. After downloading the program-miner, it is required to make its adjustment. It is better to do this after completing the registration in the pool. Now there is a fairly large number of pools for mining, one of the oldest and most popular is Pool-X.eu.
- Having found a suitable pool, it is necessary to register on it. It’s easy: you need to visit the site of this pool, click the registration button and fill out the form. In general, the registration process is almost the same as a similar action on any website or forum. After the registration is completed, you must set a password. Now it is fashionable to configure the miner to work with the corresponding pool, using the created password with login. In the folder where the miner is located, you will need to create the required file containing this information. Note that the number of threads is not constant, it will change. At the end of all these operations, you can run the miner and start making money in this way.
Features Of The Litecoin Mining Process
After the start of mining, you will quickly get a certain amount of litecoin and the question is how to deal with them. There are several options. You can bring them to your lightcoin-purse and store them there. And you can transfer the crypto currency to the exchange, where they can be exchanged for bitcoins or simply sold for real money. So there will be no problems with the implementation of the digital currency. Please note that before you start operations with crypto-currencies you need to create your unique address for receiving payments. This address should never be forgotten and it must be made difficult enough to hamper attempts at hacking as much as possible.
We note that as the total mass of bitcoins increases, the process of their extraction with video cards becomes more complicated and slows down. Now it has slowed down so much that many miners began to look for alternative possibilities for converting the capacities of their video cards (after all, many bought them specifically for mining). And here a good way out is to switch to mining litecoin, the total mass of which in the network is still far from the critical value.
To effectively extract lightcoin, you need a video adapter with a chip from 5850 and higher. In addition, it should be borne in mind that the frequency of the interchange of the RAM of the video adapter is of great importance for the speed of mining. The higher it is, the better. One of the most suitable pools is LightCraft, which allows you to instantly translate received lightcoins into regular money, output to the WebMoney system.
Strictly individual LTC mining is not effective enough, therefore its participants are united in so-called pools. All participants in the pool (more precisely, their computers) are engaged in solving one cryptographic problem. After finding a decision by the computer of one of the participants in the pool and receiving confirmation from the Litecoin network, the entire pool is awarded a reward that is distributed among all its participants. These rewards (or blocks) are the main source of lightcoins for everyone who earns by mining.
The amounts of income from litecoin mining depend on three main factors. These are the technical characteristics of the computer (primarily the video card) of the participant, the time that will be devoted to the work and the current course of the crypto currency. Practice shows that when using a mid-level video card, the revenue will not be too much, but it will be enough to pay for the Internet. When using really powerful video cards, the amount of virtual currency that is extracted can increase at times and even by orders. At the same time, we note that the mining process is not difficult, and even starting it from scratch, you can count on a fairly quick receipt of the first return.