However, there are many questions which are unanswered and unknown for people trading both Litecoin and Ethereum. In today’s guide, we are unveiling all of the differences and comparing both of the altcoins – side by side.
Litecoin And Ethereum: What Does Each Altcoin Represent?
In 2019, the latest cryptocurrency news are showing a new bullish run recorded by most of the cryptocurrencies. It all started with the rise of Bitcoin, which also triggered altcoins to move in a positive direction.
Litecoin and Ethereum both recorded a positive growth this year.
What Is Ethereum (ETH)?
Basically, Ethereum is a public blockchain which allows developers to create decentralized applications (known as dApps) on it. Just like the Bitcoin blockchain, Ethereum has its own native currency called Ether (ETH). For now, the Ethereum network is secured using a PoW (Proof-of-Work) protocol which requires computers to solve complicated math problems. Ether can be used as a tradable currency and as a method to pay for things.
What Is Litecoin (LTC)?
Litecoin is very different to Ethereum. It has much more in common with Bitcoin than Ethereum does. Basically, it is a cryptocurrency in its truest sense. Unlike the software platform which backs Ethereum, Litecoin is a peer-to-peer software which is completely open source. In other words, the cryptocurrency uses a software which everyone can download, join the network and mine Litecoin. In that sense, Litecoin (LTC) is easier to understand.
The 5 Key Differences Between Litecoin and Ethereum
Because both cryptocurrencies are different in their nature, it is important to understand how they differ from each other. These are the key differences between Litecoin and Ethereum as explained in the alt coin news:
- How They Work: Litecoin has been in the market since 2011 and since then made its name. It is created in the image of Bitcoin. However, it outperforms BTC in terms of its transaction fees and block time. Ethereum is the largest altcoin out there and its main functionality is the smart contract.
- Transaction Fees: The average transaction fee of Ethereum is highest, around $0.85 per transaction. Litecoin’s transaction fee, on the other hand, is around $0.04 per transaction which is drastically lower.
- Block Time: The block time of Ethereum is just 15 seconds. The block time of Litecoin is faster than Bitcoin but much slower than Ethereum, at 2 minutes and 19 seconds.
- Limits: Currently, Ethereum has not limits. Litecoin has a maximum limit of 84 million coins.
- Smartness: Ethereum is a bit smarter than Litecoin because its platform helps Ether transactions happen naturally. This is why they are called “smart contracts” which is a functionality that Litecoin does not have.
As you can see from above, Litecoin and Ethereum might look similar – but they are actually very different. Still, deciding on which coin to invest in best depends on your answer to the question “What do I want to do with this cryptocurrency?”
So, if you only want to conduct transactions, Litecoin (LTC) has affordable transaction fees. But if you want to create contracts, crowdsource and streamline management functions, the better technical alternative is Ethereum (ETH).