Litecoin vs Ethereum: Similarities and Differences

If you are looking for the best altcoins to invest in, and Litecoin and Ethereum have caught your interest, you’re in the right place. In this article we’ll be taking a look at Litecoin vs Ethereum; their similarities and differences, to enable you to make a better choice on what altcoin to invest in. 

About Litecoin

Created in 2011, Litecoin is a fork of the Bitcoin blockchain, making it similar to Bitcoin in several ways. 

Since then, Litecoin has become a popular gateway into the crypto market, offering users faster transfers and more efficient mining.

Similar to Bitcoin, Litecoin is mainly used as a currency to pay for goods and services.

The proof-of-work mechanism in Litecoin uses a scrypt-based process that does not require as much computing power to manage. In addition, the scrypt function requires more memory from additional users, allowing the mining process to spread out among more people.

Litecoin produces lower transaction fees than Bitcoin and requires less time to mine. The Litecoin blockchain mines new tokens around a quarter of the time it takes for Bitcoin. Litecoin’s overall design provides access to those looking for a currency that is convenient and trustworthy.

About Ethereum 

Ethereum is a blockchain platform created in 2015. Ether is the cryptocurrency of the platform.

Ethereum is designed with a different blockchain platform and focuses on smart contracts, transfer of property and dApp production. 

The dApps created on the Ethereum blockchain use Ether tokens that come from the chain. While Ether tokens can also be used as a currency, their main focus is to power dApp creation.

Features of Litecoin

1. There are 84 million Litecoins. Each Litecoin can be divided up to 8 decimal places
2. Litecoin works on the Lightning Network. This enables small transactions to process off of the main blockchain.
3. Litecoin is built using a Proof-Of-Work protocol like Bitcoin. This means a network of miners computes complex calculations to keep the Litecoin blockchain running.
4. Litecoin is meant to be a transactional currency and/or a store of value. Investing in Litecoin can be compared to investing in gold.

Features of Ethereum 

1. There is not a capped supply limit of Ethereum.
2. The Ethereum platform’s main purpose is to act as a decentralized application platform.
3. Ethereum uses a Proof-of-Work mining system. Although, the network is considering switching to a Proof-of-Stake consensus, which would replace miners with validators.
4. Ethereum blocks are mined every 10 to 20 seconds.
5. Instead of transaction fees, Ethereum uses a different system called gas. Gas is a unit that measures the amount of computational effort required to execute transactions. When users send Ether tokens, they pay a gas fee to complete the transaction.

Similarities between Litecoin and Ethereum 

1. Ethereum and Litecoin both operate on open-source networks, granting easy access to anyone who is interested in crypto.
2. Ethereum and Litecoin both require less energy for mining compared to Bitcoin. In recent years, Bitcoin has become increasingly inaccessible due to its high mining costs and exorbitant surge in value.
3. The confirmation times necessary for Litecoin and Ethereum are very similar, requiring less than a minute to confirm transactions. Although the timing can vary depending on the network’s traffic.

Differences between Litecoin and Ethereum 

1. While Litecoin uses transaction fees similar to Bitcoin, Ethereum uses gas fees.
2. Litecoin has a supply limit of 84 million coins. While Ethereum has no limit on token production.
3. Ethereum is a much faster blockchain than Bitcoin, making blocks very easy to mine. While both Litecoin and Ethereum currently use Proof-of-Work mining, Ethereum may switch to Proof-of-Stake. This will make it even easier to mine Ethereum.
4. Litecoin is primarily used as a currency and/or a store of value. Ethereum can also be used to create contracts and transfer property.
5. Because Ethereum is faster to mine, transaction speed is much faster than Litecoin. Because Litecoin transactions get put into newly mined blocks, its transaction speed is slower. This means Ethereum is better for small transactions.

Where To Sell Litecoin and Ethereum in Africa

If you’re looking for the best crypto trading app to sell Litecoin or sell Ethereum in Africa, Breet is the right choice.

Breet is an OTC crypto trading app in Africa that allows users to sell their crypto, convert it to cash and withdraw to their local bank account within minutes.

It is currently available in Nigeria and Ghana.

For more help and support, Their customer service is available 24/7 at support@breet.app and calls/WhatsApp 08090569499

Conclusion

Litecoin and Ethereum are both promising altcoins and they both have their pros and cons.

Before you invest in either of these altcoins, make sure you DYOR to fully understand them and pick which one is more suitable or maybe they both are.