While the legendary Bitcoin is treated as digital gold, it’s brother, Litecoin is treated as digital Silver in the ecosystem. Litecoin is created by Charlie Lee is 2011, a developer and a former Google employee. He did so, just to fill the gaps that Bitcoin is creating.
While Bitcoin is taking up too many resources and time to process a block, Lee created this alternative coin by slightly tweaking the Bitcoin’s algorithm and making this new coin much more efficient.
While Bitcoin takes you high hash rates and needs at least 10minutes mint a block, Litecoin does it in 2.5minute time and need fewer resources than BTC‘s. Its purpose is to move the miners from using GPUs from simple CPUs to mint a coin. And it happened.
What’s with the halving?
Every other major cryptocurrency, if they’re decided at inception, tends to undergo a technical transformation called halving. This is cutting down the rewards to half, whenever a block is mined. And for Litecoin, this happens every four years.
The hype seems to be continuing, as seen by Google trends now, searches for Litecoin halving are much more than Bitcoin’s news and other cryptocurrencies.
This is what the founder Charlie Lee has to say about the event, “When the mining rewards get cut in half, some miners will not be profitable and they will shut off their machine. If a big percentage does that, then blocks will slow down for some time. For litecoin, it’s three and a half days before the next change, so possibly like seven days of slower blocks, and then after that, the difficulty will readjust and everything will be fine.”
It’s all about hashing after all!
Analysts think this event is for a good cause. As this would swipe up people who aren’t serious. But this would finally let only the huge mining farms stay in the race and wipe out individuals. Though once the hash rate drops below a certain point, the mining difficulty will adjust itself and smaller miners may be able to begin mining once again.
People think merged mining or waiting for a while to let the chain adjust hash rates could be useful, but the price of it is already made up. As analysts, predicted, nothing big would happen even after halving.