The topic of conversation these days is cryptocurrency. We might even concur that it is becoming increasingly popular as a medium of commerce and human survival. This is what gave rise to our discussion on Litecoin vs. Ethereum.
Since its conception, digital money has undergone significant change, causing many individuals to enter the digital realm as agents. Some people enter the world with the intention of making investments, which is why we may call them traders.
Furthermore, since these digital currencies didn’t appear out of thin air, some of these individuals are the founders of them.
In reality, there are hundreds of cryptocurrencies available right now, and we can even agree that most of them are brand-new. Therefore, in order to understand their differences and similarities, we occasionally need to deal with the comparison of different cryptocurrencies.
As a result, we will examine some of the main distinctions between Litecoin and Ethereum in this post.
Ethereum vs. Litecoin
Two of the first cryptocurrencies created in the crypto realm were Litecoin and Ethereum.
Litecoin and Ethereum are a component of the second phase of the next cryptocurrency that was launched, in addition to Bitcoin, which was the first cryptocurrency ever developed.
Let’s examine some of the specifics of the two currencies to better comprehend their respective histories, points of similarity and distinction, as well as the tokens that have been made using them.
We will later examine the market pricing and potential growth of the two cryptocurrencies.
Background of Ethereum
After Bitcoin, Ethereum is the second most popular cryptocurrency. Most people think of Ethereum as a coin, but if you dig down far enough, you’ll discover that it’s also a platform.
Even though Ethereum has several creators, we will learn about the original individual to come up with the platform concept.
When Vitalik Buterin, a programmer, unveiled the white paper outlining the concept behind the Ethereum platform, the platform was first mentioned.
After that, he was joined by others who helped co-found Ethereum, including Gavin Wood, Anthony Di Iorio, Charles Hoskinson, and Joseph Lubin.
The “yellow paper,” which was a technical description of the Ethereum protocol, was given by Dr. Gavin Wood in April 2014. The software was crowdfunded at the same year that Ethereum development started.
In the same year, Ether, the currency created by the Ethereum network, was formally made available for purchase for 42 days before being able to be paid for using Bitcoin.
The price of Ether then keeps rising as Ethereum continues to improve its platform.
Since Ethereum’s formal introduction in July 2015, a large number of decentralized apps have been introduced on its platform.
On the Ethereum platform, several transactions have been made since the inception.
Applications may be launched on the platform that are decentralized.
As a result, there are now numerous decentralized financial systems, which eliminates the need for financial intermediaries like banks, brokerages, exchanges, etc.
Furthermore, the platform may be utilized in the construction of unique NFTs, which are digital artworks. The site also gives customers access to an ERC 20 wallet that has been utilized on the Ethereum Blockchain and offers an ICO (initial coin offering).
On its blockchain, Ethereum offers smart contracts, a software application. They are mostly used to build programs that may automate interactions between users without the need for middlemen or time-consuming delays.
Ethereum historical price
The token, Ether, is the second most popular cryptocurrency after Bitcoin and the second most expensive coin on the market after Bitcoin. The cryptocurrency is commonly referred to as ETH.
Ether was first introduced in 2015 at a price of about $0.311, and as of November 2021, it has climbed in price to $2,817.49.
Like other cryptocurrencies, ETH has seen ups and downs. At the time of writing, in September 2022, the price of Ethereum is 1,777 USD. When it comes to the NFT market, Ethereum is a significant participant.
The coin is currently valued at $207,954,410,588 on the open market.
The Litecoin timeline
A cryptocurrency called Litecoin was created in October 2011. Although it is based on the Bitcoin system, its block size limit is much lower, and there are no mining incentives.
The cryptocurrency coin has gained a lot of popularity in recent years, especially in Asia and America where it is frequently exchanged for other cryptocurrencies like Bitcoin or Ethereum.
Charlie Lee, a Google employee, invented the peer-to-peer cryptocurrency.
It enables you to transfer transactions between two parties directly, without the use of a middleman like a financial institution. For increased security, transactions can be be transmitted anonymously or through encryption.
All transactions are documented on the blockchain, a public ledger that is accessible to all platform users.
Due to the fact that the data is kept on a decentralized system, nobody has the authority to change it.
This makes it incredibly safe as there aren’t any central servers that bad actors might break into.
The cryptocurrency has seen some difficult growth, but it has become one of the most well-known ones on the market and is backed by several significant businesses, like Paypal and Visa.
Since it uses the same blockchain technology as Bitcoin and has many of the same features, Litecoin is effectively a copy of the cryptocurrency. include the use of a proof-of-work system and a decentralized network to validate the transactions.
Price history for litecoin.
One of the first cryptocurrencies to gain notoriety after Bitcoin was this one. Between 2011 and 2013, the price of a coin ranged from a few cents to three dollars.
Litecoin saw its first bull market in 2013, when its price increased ten times to roughly $50, marking its all-time high.
Moving ahead to 2014, the cryptocurrency experienced a setback when the Mt. Gox exchange crisis and the bear market of that year reduced its value to about $1 by January 2015.
Due to the dangers involved with investing in cryptocurrencies, investors were increasingly wary.
In addition, Litcoin strengthened and rose to a value of $3 in 2015. In March 2017, the cryptocurrency launched its second bull market and rose from $3 to $50. The value of Litecoin increased to $80 by July of the same year.
The cryptocurrency saw an incredible bad market in November 2017 that was followed by a significant market boom, increasing the value of Litecoin from 80 to 371 dollars.
But in 2018, the cryptocurrency market saw a slump that also hit Litecoin, and as of December 2018, its value had dropped to $25.
The cryptocurrency started to recover its bull vigor after the crash, reaching a high of 145 dollars in 2019 before falling to 50 dollars in the middle of the same year.
Additionally, since then, the price of Litecoin has increased and is at 62.78 as of September 2022.
The cryptocurrency’s market capitalization as of right now is $4,202,194,150.
Differences between Ethereum and Litecoin
Cryptocurrencies are a brand-new, cutting-edge method of sending money that is swiftly gaining acceptance all around the world.
The most popular cryptocurrency is Bitcoin, but there are several others as well, such as Ethereum and Litecoin.
Despite the fact that all cryptocurrencies are digital, decentralized forms of money that can be transferred over the internet, there are some significant characteristics that distinguish them from one another.
Let’s examine each of these cryptocurrencies individually and pinpoint some of their main distinctions.
A peer-to-peer cryptocurrency called Litecoin functions in a decentralized manner, much like Bitcoin. With its own coin, Ether, Ethereum is a decentralized platform.
Litecoin was developed as a Bitcoin substitute. Ether, the cryptocurrency used by Ethereum, was not developed as a Bitcoin substitute. While Ethereum was made in 2015, Litecoin was made in 2011.
One of Litecoin’s main benefits is that transactions happen more quickly, which makes it a popular option for those who wish to send money more quickly or perform transactions more often. When it comes to transactions, Ethereum is a little bit slower.
After Bitcoin, Ethereum is the second-most used and valued cryptocurrency. Both in terms of popularity and market value, Litecoin is less well-known.
In terms of security, Ethereum is also safer than Litecoin.
The proof-of-work technique used by Litecoin enables users to receive compensation for transaction verification. Ethereum also use proof-of-work, but it has started transitioning to proof-of-stake, which is a consensus method for deciding which members will be in charge of handling transaction verification.
The Litecoin network has lower transaction costs, as low as $0.05. The transaction charge for the Ethereum network is $0.69, which is somewhat more expensive.
While Litecon has just 84 million coins generated with another 24 million still to be mined, Ethereum has an endless supply of its token, called Ether. While Litecoin mining takes 2.5 minutes, ETH mining only takes 15 seconds.
|Launched in 2015.||Launched in 2011.|
|A platform with its own cryptocurrency named Ether||A peer-to-peer cryptocurrency|
|High transaction fees ($0.06 upward)||Low transaction fees ($0.05).|
|It is very secure in transactions.||It is not very secure in transactions.|
|Most popular after Bitcoin||Not that popular.|
|High market value||Low market value|
|Proof of Work algorithm||Moving from Proof of Work to Proof of Stake|
|Slow in transactions||Faster in transactions.|
|It has a limited supply of coins.||It has an unlimited supply of coins.|
|Mining time 15 seconds||Mining time 2.5 minutes|
|The current market price of the cryptocurrency is $207,954,410,588.||The current market cap of the cryptocurrency is $4,202,194,150.|
Ethereum and Litecoin similarities
1. They are both decentralized and peer-to-peer coins.
2. Both of them utilize blockchain technology.
3. They were both started by their respective founders because they recognized the Bitcoin loophole.
4. Compared to Bitcoin, they both provide quicker transaction speeds.
5. They’re both open source.
6. performance of Ethereum on the market
Since Ethereum’s launch, there have been bull and bear markets, each of which has had some impact on the cryptocurrency. We must also be aware that some of these cryptocurrencies are influenced by more potent ones, like Bitcoin.
The pair-to-pair exchange has an impact on several coins. Inflation has an impact on them as well, mostly in terms of currencies like the USD, EUR, etc. The daily price of Ethereum (ETH) from August 2015 until August 18, 2022, is shown here.
The market’s performance of Litecoin
Like all other cryptocurrencies, Litecoin has experienced boom and downturn markets.
It wouldn’t be wise to discuss this cryptocurrency without first providing you with market data, namely for the year 2022.
Knowing a cryptocurrency’s market performance greatly aids in deciding whether or not to invest in it.
Since the majority are backed by Bitcoin, other alternative coins are impacted when its value declines. The daily price of Litecoin (LTC) from April 2013 to August 18, 2022, is shown here.