There are now thousands of cryptocurrencies available in the crypto market. Although there will be a finite number of Litecoins in circulation, new Litecoins will continue to be created as rewards for miners that validate new blocks what is a hard fork on the Litecoin blockchain. Following the issuance of new blocks on the Litecoin blockchain, miners are given a predetermined amount of LTC. When Litecoin first launched, some 50 LTC coins were given as mining rewards per block.
litecoin hard fork
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While this was later found to be a miscommunication that was solved it still left a bad taste in many potential buyers’ wallets. The project’s github page hasn’t had significant code updates for quite some time now, and while some people don’t like developers who crank out code on a daily basis, some more updates would definitely help. Its massive supply of 840 million tokens will definitely keep its price below the LTC price forever.
Hard Fork Question
Also, in case it wasn’t obvious, the developers will not change the core economics of Litecoin. The final number of coins and the rate of mining rewards decrease will never be changed. LTC appears to be edging higher due to news of an upcoming fork called “Litecoin Cash,” which is promising new tokens to existing holders at block 1,371,111. For every 1 LTC held at block 1,371,111, holders will receive 10 “LCC,” according to the official website. After a fork, those holding the underlying currency are given “free” tokens based on their holdings in the older asset.
The Lightning Network is a second-layer technology for bitcoin that uses micropayment channels to scale its blockchain’s capability to conduct transactions. The block is verified by mining software and made visible to any system participant who wants to see it. Once a miner verifies it, the next block enters the chain, which is a record of every Litecoin transaction ever made.
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Litecoin Cash is a fork from Litecoin , but with a higher max supply. Their blockchain runs the SHA-256 mining algorithm, where old Bitcoin ASIC miners may be recycled to employ them for LCC mining. Litecoin experienced another hard fork in December 2013, the result of which is the creation of Monacoin. It is a cryptocurrency that is used for peer-to-peer payment, named after the popular ASCII cat, Mona, which was created in the late 1990s, and is very popular in Japan. Bitcoin Gold was a hard fork that followed shortly after bitcoin cash, in October 2017. The creators of this hard fork aimed to restore the mining functionality with basic graphics processing units , as they felt that mining had become too specialized in terms of equipment and hardware required. A bitcoin hard fork refers to a radical change to the protocol of bitcoin’s blockchain that effectively results in two branches, one that follows the previous protocol and one that follows the new version.
[Bitcoin History][#7 – Bitcoin Hard fork][Part 5]
Many other hard forks have spawned from different cryptocurrencies over the years. One of the most popular forks of bitcoin is Litecoin (LTC) and a prominent fork of bitcoin cash is Bitcoin SV (BSV).#BTC pic.twitter.com/HaFQxkoxVh
— Altcoin Insider (@AltcoinInsider_) December 1, 2021
CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. Litecoin was created in 2011 by Charlie Lee, a Google employee. Lee wanted to create a similar network, aimed at fast payments. That’s why the block generation time for Litecoin is four times faster. Litecoin network uses a different consensus mechanism, called “scrypt,” which isn’t so demanding in terms of resources. Also, as it was supposed to be a cheap cryptocurrency, the maximum supply cap was raised to 84 million coins.
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Litecoin Cash is exactly that, a so-called software fork whose developers decided to copy the way Litecoin itself came into existence. A software fork isn’t actually a fork; it works more like a clone of sorts. It is a completely new project which took the ideas, software, coding and concepts utilized by Bitcoin and applied them on itself.
While it did copy Bitcoin in a way, it was still a completely new, different cryptocurrency. Among other differences it utilizes a Scrypt PoW algorithm and has faster block generation speeds than its role model. Yes, it is possible to mine new Litecoins as its blockchain operates with a Proof of Work consensus algorithm, just like Bitcoin. Bitcoin’s cryptographic puzzles are programmed to get harder to solve, the more transactions are processed. This means that Bitcoin miners must invest more time and money into confirming a new block. Unfortunately, miners that use ASICs have since been able to manipulate the Scrypt algorithm so that they can generate more hashes per second than CPU and GPU miners, giving them the competitive edge once more.
The cryptocurrency’s most prominent hard forks, Bitcoin Cash and Bitcoin SV , mimicked BTC’s trajectory. Soft forks are slight divergences from the original blockchain path, which occur when new rules and a new chain are introduced. These rules will look to address the problems with the original blockchain and create a better product. Some original chain nodes will update to accept new rules while others will remain unchanged. The original chain will continue to function and accept information from both types of nodes, while the new chain will only work with the updated ones.
- Eventually, it switched to Bitcoin code, but the first version was based on Litecoin.
- Litecoin is making steps to bridge the gap between traditional finance and the cryptocurrency world.
- Litecoin rallied today, climbing to its highest in more than a month following the Litecoin Cash hard fork that took place on Sunday.
- Ith enough support, a completely new version of these currencies can be created from a fork, and modified with slight advantages.”
- While they were joking at first, later on they realized how the majority of existing SHA256 hardware that is currently in circulation is obsolete, because of the network congestion.
Only four crypto exchanges are listing the coin at this initial stage. These are Yobit, MercatoX, TradeSatoshi, MeanXTrade, and CryptoBridge. In response to Lee’s criticism, the LCC team sent out a tweet offering clarification.
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- The developers should not be put in the position to make this decision, and you wouldn’t want us to.
- “As investors seek new opportunities and diversification within their portfolios, attention will shift away from the mainstream cryptos towards new challengers in the market.”
- This is where marketplaces like Vertex.Market play crucial roles in the industry.
- Well you would have to mess around with their support in order to get your LitecoinCash credited.
- Right now LCC trades at $0.032 per coin and has a market cap of just over $19 million.
However, those users who retain the old software continue to process transactions, meaning that there is a parallel set of transactions taking place across two different chains. The idea for it supposedly came about when its creators mentioned how Litecoin should be rebuilt to use SHA256 hashing algorithms. While they were joking at first, later on they realized how the majority of existing SHA256 hardware that is currently in circulation is obsolete, because of the network congestion. They noticed that such hardware should be perfect for mining a lower throughput, lower blockchain size coin like Litecoin. The main issue was the Scrypt mining algorithm used by Litecoin, which requires different mining hardware than the SHA256-compatible coins. Therefore the team decided to perform a hard fork of Litecoin and Litecoin Cash was born. Sometimes we see a new project being born from the concepts, ideas and code of an old project.
Receive the latest news about our cryptocurrency education courses, events, and guides. Interestingly, the coin had a controversial repute even before its launch.
The Litecoin number of coins, i.e. 84 million, is way more than LCC total being 840 million. Litecoin is making steps to bridge the gap between traditional finance and the cryptocurrency world. The Litecoin Foundation acquired a 10% stake in the Germany-based WEG Bank, which has agreed to use Litecoin’s open-source technology to assist its customers with transactions.
While the two networks certainly have some similarities, Litecoin and Bitcoin differ more than they might initially appear. For example, one reason Litecoin was forked was to speed up transaction validation times. On average, Bitcoin validates blocks within 7-10 minutes, depending on network congestion. Litecoin is much faster, coming in at around two minutes per block. Halvings occur after a predetermined set amount of time, cutting in half the amount of crypto awarded to each miner for validating a block of transactions.
During the month of November 2013, the aggregate value of Litecoin experienced massive growth which included a 100% leap within 24 hours. Despite some lingering interest, bitcoin unlimited has largely failed to gain acceptance. Like Bitcoin XT, Bitcoin Classic saw initial interest, with about 2,000 nodes for several months during 2016. The offers that appear in this table are from partnerships from which Investopedia receives compensation.
This should prevent any major issues with block times on the Litecoin Cash network. Bitcoin operates on the core concept of decentralization, so the people involved in the network feel in control over the network.
What happens to my coins in a hard fork?
A hard fork is any change that breaks backward compatibility. Nodes running the old software will see any new transactions as invalid. This means that to mine new “valid” chains they will need to update.
Fortunately, there are numerous wallet types that are compatible with Litecoin. There were claims that it will improve the block speed of the original Litecoin at 2.5 minute blockspeed.
It is most noteworthy in its use with cryptocurrencies and NFTs. The project also still exists today, with some developers strongly supporting Bitcoin Classic. Nonetheless, the larger cryptocurrency community seems to have generally moved on to other options. Dogecoin is a peer-to-peer, open-source cryptocurrency that is categorized as an altcoin.
Author: William Watts