Ethereum Vs Litecoin

  • Today’s Ethereum Price

    1 ETH

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  • Today’s Litecoin Price

    1 Litecoin

start Litecoin mining

Quite some time has passed since Litecoin entered the digital market. After Bitcoin, it made its popular entry as a modified and upgraded version of the former. Many users have resorted to this kind of currency and stashed all their digital cash in e-wallets instead of putting their faith in centralized banks. Litecoin blockchain is one of the oldest in use, but a more recent type, called Ethereum has been drawing a lot of attention lately. It has been rated among the top two cryptocurrencies in the world, even though it was launched only in 2015. In case you are wondering which one is better- Litecoin or Ethereum- and where you should invest all your money in, here’s a quick guide. The major differences between the two are listed as below:

  • The Transactional Process : Litecoin is used purely for transactional purposes and serves strictly as a digital currency which can be mined by online users. Ethereum also functions as a cryptocurrency, but at the same time has the leverage of providing networks that may be used to create smart contracts and funds for fresh projects. The management structure happens to be decentralized, thereby allowing a smart contract to take place. Ethereum helps set a funding period for any new enterprise and as soon as the targets are achieved, one can hop on to the next step and create business propagandas. The number of votes aligned for each person is proportional to the number of digicoins that have been contributed. Depending on the count of coins given out for the funding process, the number of votes are awarded.
  • The Cryptographic Reward Structure : Litecoin and Ethereum, both are based on proof-of-work. When it comes to reward-mining, Ethereum gives away five coins to each block in the chain. Litecoin, on the other hand, rewards 25 coins. The values of a Litecoin and an Ethereum are different, depending solely on the network. Thus, do not get carried away by the quantity and check the exchange rates beforehand, so as to decipher the real value of these reward coins. Litecoin has a fixed limit on the number of coins it releases and once it reaches its saturation, the inflow of new coins stops abruptly. Ethereum, on the other hand, has a different model altogether and releases a specific number of coins every year.
  • Mining Algorithm : Litecoin makes use of scrypt algorithm that can be used on less powerful computers and also consumes less electrical units. Ethereum uses what is called 'ethash' which has been specially designed for its own network to avoid the risk of mining centralization.
  • Transaction Fee : Litecoin has a fixed transaction fee, but Ethereum varies in this regard. It takes into account the complexity of the transaction, the storage needs and the bandwidth before determining the fee for every transaction process.