Litecoin is an alternative cryptocurrency based on Bitcoin. It differs from Bitcoin in that it targets a faster block rate (2.5 minutes) and uses scrypt for the primary hashing done in mining.
While scrypt was claimed to be resistant to GPU-based mining early on, GPUs are currently the most efficient hardware with which to mine Litecoins. One of the aims of Litecoin was to provide a mining algorithm that did not compete with Bitcoin.
Here are some facts regarding Litecoins:
- Litecoins are ASIC resistant so it is likely GPU miners can for the time being continue to profit using home made mining rigs with high end AMD GPUs
- Litecoins are the 2nd most popular cryptocurrency after bitcoins
- Litecoins have an advantage in that it allows transactions to be confirmed quicker than bitcoins.Generates blocks every 2.5 minutes on average (4 x Bitcoin’s rate)
- Litecoins use a mathematical puzzle that cannot be solved using custom mining chips like those appearing for Bitcoin
- Litecoins are less dependent on the activity of a small number of dedicated miners with expensive equipment, allowing a larger pool of miners to compete
- One of the aims of Litecoin was to provide a mining algorithm that did not compete with Bitcoin
- Litecoins use scrypt as a proof-of-work scheme. Scrypt adds memory-intensive algorithms to reduce the efficiency of the kind of parallelization that GPUs offered in early Bitcoin mining
- Litecoin addresses start with L due to their version number. Otherwise, they are generated identically to Bitcoin addresses
- Some people state that comparing Bit coins and Lite coins is like comparing Gold to Silver