More and more people are now embracing the world of cryptocurrency and are looking for an alternative to the more common Bitcoin. This is where the Litecoin comes into play. Litecoin is a peer-to-peer cryptocurrency and open source software project released under the MIT/X11 license. Both the creation and the transfer of the Litecoin is based on an open source cryptographic protocol not managed by any central authority. This type of digital currency is based on the well-known Bitcoin in both its uses and technical details.
The founder of this newer form of cryptocurrency is Chaerlie Lee, who is very active on social media and on his blog. He is a former google employee who had the vision to create a light version of the Bitcoin, which he achieved in October 2011.
Similar to the Bitcoin, there is a limit to the amount of Litecoin that can be created. No more than 84 million can ever be in existence, using the Scrypt algorithm for proof of work hashing.
How Litecoin Mining Works
Because of the specialised hardware involved with the cryptocurrency mining process, huge processing power is needed. For the mining of most cryptocurrencies, the CPU in your own personal computer will be nowhere near powerful enough, however with Litecoins it is different. It is possible for Litecoins to be mined using just an ordinary computer, although it will not be as efficient as a larger machine.
Due to the proof-of-work that is used when mining Litecoin, the process is expensive in terms of both time and energy. Litecoins] transactions must be included in a block. Miners then check these transactions over proof-of-work, with miners analysing incoming transactions against past transactions on the blockchain.
As the mining process is not affordable for many, miners are rewarded for every block mined, providing them with a bit of motivation to finish the job.
Mining for Litecoins is very similar to mining for Bitcoins and other cryptocurrencies. This too, involves a four-fold setup. You’ll need to have four things in place before you begin to mine for Litecoins:
Litecoin wallets are similar to other digital coin wallets. You are able to use both a hardware or a software wallet as a place to store your cryptocurrency, much like you would store fiat money in a bank account. Each user who is looking to mine Litecoins must first have a Litecoin mining wallet. These wallets come with both a public and a private key. The public key is like your bank account number, which you give to businesses or individuals who want to pay you money, while the private key is like the signature which you use to verify transactions in real life. While public key is safe to be given out to users, your private key must keep safe, secure and private.
There are many Litecoin wallets available for any users. The first decision you need to make is if you want your wallet to be hardware, software, PC based, a website or smartphone based. Here is a look at some of the best wallets for Litecoin users today, many of which are multifunctional, meaning you can use the wallet for different types of digital coins.
- Ledger Nano S
- QT’s LitecoinWallet
Litecoin Mining Hardware
Due to the amount of people that want to mine Litecoins every day, it is no longer possible to mine them with the help of CPU and CPU systems like it used to be. The mining hardware is now much more advanced; therefore it is no longer profitable to mine Litecoins using this method.
However, like Bitcoins, dedicated ASIC devices are being developed for Litecoin mining. The whole mining process has changed greatly over recent years and today the only major ASIC device available for mining Litecoin is the AntMiner L3+. The device was released back in 2017 and is proving to be very popular. It comes with a hashing power of 504 MH/s and a 180-day warranty. Overall, it has a good track record when it comes to mining devices.
If the AntMiner L3+ isn’t available in your region or is out of stock due to the high demand, another option is the AntMiner S7 – which can be used to mine Bitcoins, which can later be converted into Litecoins. However, the L3+ is a better option as you can directly mine for Litecoins.
Litecoin Mining Software
The CGMiner is the most commonly used when it comes to mining Litecoins. Yet, with the developing technologies, the GUIMiner (a GUI version of the CGMiner) has become quite popular. Some miners also have started mining using their own dedicated software packages.
Litecoin Mining Pools
When mining as an individual, you will often be limited in terms of both resources and budget. This is where a Litecoin Mining Pool can help. As the name suggests, miners pool all their resources together, sharing resources and reaping the benefits. This ensures that a faster, more periodic network of mining is created, helping with making profits faster.
The Litecoin is one of the most popular digital currencies available when it comes market acceptance and liquidity, second only to the Bitcoin. Therefore, it is a good choice when it comes to deciding which cryptocurrency to mine.