Updated November 1, 2023
Difference Between Litecoin vs Ethereum
Cryptocurrency, with intrinsic value, can serve as a virtual currency used as a medium of exchange or for transactions between two or more parties. Any central regulatory body does not authorize this kind of currency, and thus, it can be easily interfered with by any Government or regulatory body. Cryptocurrencies make fund transferring easy – be it inter-country or among different countries. The technology, known as Blockchain, enables different users to store a specific ledger on an online platform. Many important jobs like crowd-funding and online voting can be done using Blockchain through minimum processing fees. Many Financial Institutions, such as JP Morgan, believe that Crypto-currencies are efficient means of transaction at a lower cost.
Two types of cryptocurrencies, Litecoin and Ethereum mining, have their values denominated in United States Dollars. Bitcoin, launched in 2009, was the first cryptocurrency. Bitcoin, traded extensively across the globe, is the most popular cryptocurrency. Litecoin has been invented to serve as the ‘Silver’ to Bitcoin’s ‘Gold’ based on Bitcoin’s model. Since its inception, this Cryptocurrency has become very popular as it has become the improved version of Bitcoin, excluding the shortcoming Bitcoin had. The intention was to strengthen the entire process. Litecoin has the function of producing four times blocks as Bitcoin. For example, Litecoin can create one block every 2.5 minutes, whereas Bitcoin takes every 10 minutes. Litecoin is the third-largest trading currency across the globe besides Bitcoin and Ether.
Ethereum, on the other hand, is an operating platform where Cryptocurrency Ether operates. It is an open-ended, public, blockchain-based data computing platform where its functional currency, Ether, trades. Ethereum uses a modified version of the Nakamoto consensus to function. First, Vitalik Buterin, a cryptocurrency researcher, invented Ethereum in 2015. In 2016, two different parts split from Ethereum. The old one remained as the Ethereum Classic, and the new one became Ethereum.
Head To Head Comparison Between Litecoin and Ethereum (Infographics)
Below is the top 4 difference between Litecoin vs Ethereum
Key Differences Between Litecoin and Ethereum
Both Litecoin vs Ethereum are popular choices in the market; let us discuss some of the major Differences Between Litecoin vs Ethereum:
- The block time required for Ethereum is 14 to 15 seconds, whereas Lite-coin takes 2.5 seconds.
- The reward for Litecoin vs Ethereum is primarily based on the concept known as ‘Proof of work’. Litecoin awards 25 LTCs, whereas Ethereum awards 5 ether for each verified block.
- Capping the number of coins released and not allowing new coins to flow into the system limits Litecoin. Ethereum has a slightly different model and tends to release the same number of coins yearly.
- One of the major differences between Litecoin and Ethereum mining is the fixed transaction cost for each Litecoin, set at $0.4 USD. On the other hand, Ethereum takes a different approach; they use the ‘Gas Approach’ to determine the cost of each transaction. This approach emphasizes the complexity, storage bandwidth, and relative requirements required during the transaction period.
- In the case of Ethereum, mining generates new coins, but in the case of Litecoin, transactions depend on the customer’s ledger.
- The price gap is huge, though the price of litecoin went for a huge run-up during 2017 and corrected and settled to a particular base. The price of Ethereum corrected hugely after a dream run-up in 2017.
- Litecoin was introduced on the Bitcoin platform in 2011 and has undergone modifications since that time. A Toronto programmer and Bitcoin enthusiast invented Ethereum in 2013, a few years after the invention of Litecoin.
Litecoin vs Ethereum Comparison Table
Below is the 4 topmost comparison between Litecoin vs Ethereum
| The Basis of Comparison | Litecoin | Ethereum |
| Related to | Litecoin is a form of Cryptocurrency | The cryptocurrency Ether gets traded on the cryptocurrency platform Ethereum. |
| Meaning | The motive behind the invention of Virtual currencies is an easy transaction between two parties, removing ambiguities and enhancing efficiency at a reduced price bracket. However, governing bodies do not regulate these currencies. | Ethereum is a blockchain platform that is based on several systematic Algorithm computations. There are methods of storing the ledger within the system. |
| Financial asset | Litecoin is a financial asset with an intrinsic value of its own. However, one can transact with the cryptocurrency, and it represents the value in terms of USD. | Several algorithms on the digital platform trade currencies like Ether and determine the value of the traded cryptocurrency. |
| Capital asset | Litecoin is a capital asset as it is used for a particular transaction or exchange. | Ethereum is not used as a tool of exchange or transaction. The function of Ethereum is to provide functional support to its cryptocurrency Ether, where several data ledgers can be stored. |
Conclusion
Cryptocurrencies have evolved as a new generation of transacting tools with an intrinsic value. However, one school of thought believes it has adverse effects as any Governing body does not regulate the currency. Thus, the value calculated in terms of USD does not look promising from a broader perspective. But with new generation traders and cross-border dealings, the essence of Crypto-currency has evolved as one of the essential parts of the day-to-day business.
The price of Bitcoin (one of the heavily traded cryptocurrencies) has increased fourfold during the last few years and corrected. This demonstrates that the new generation of traders and parties are accustomed to the tool. Apart from the USA, several countries are setting their Research and development to invent their own Blockchain. Only time will prove the historical importance of replacing the barter system with currency or cash and replacing cash with plastic money and electronic payment systems.
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