Litecoin Versus Ethereum: Understanding the Difference

While litecoin may not be as recognizable as bitcoin, it is just as old. However, in the past few months, litecoin has gained immense popularity as a trusted digital currency. Facebook co-creator Tyler Winkleross says the reason for the company’s jump to litecoin is because it is free of “politics and human error.”

Another cryptocurrency that’s capturing a great deal of attention is Ethereum. Although it’s still in its infancy, it has risen to the number 2 spot among cryptocurrency in the world. Yet still, there are differences.

Litecoin and ethereum functions in different ways a digital currency

  • As a strict cryptocurrency, litecoin is used almost strictly for transactions. While it can be mined as bitcoin, it is used as digital currency.
  • Ethereum is a cryptocurrency, however, it can also be used for smart contracts and crowd sourcing. Once a funding period is set for a new organization, proposals can be created. The number of votes allotted equals the number of coins contributed.

What is the reward structure?

Don’t be misled by coin quantity. The value of the coin depends upon the network. For every verified block, bitcoin awards five ether. Litecoin awards 25. The best thing to do is verify the exchange rate of the coin to get a sense of the value. It should also be noted that litecoin has a cap, and once it is reached no new coins are released. Ethereum, on the other hand, releases the same number into the network each year.

Proof of Work

During the mining process, both litecoin and ethereum use a proof-of-work algorithm. Litecoin’s scrypt algorithm favors high speed access memory instead of processing power. This is also ideal for computers that use less energy. The proof-of-work algorithm etash was designed specifically for etherium. The reason for the new algorithm is to prevent mining centralization.

Mining centralization takes place when a small sector of the mining groups get their hands on a disproportionate amount of power that can manipulate the network. Mining centralization can be highly profitable, especially when specialized ASIC mining chips are used. There are some ASIC-resistant chips that used to cause a reduction in the economic incentives. Once the incentive is taken away, manipulation is obsolete.

Today, litecoin transaction fee runs about $0.4 cents per in USD. Ethereum uses gas to determine how much the transaction will cost. Bandwidth, storage needs and transaction complexity all go into ethereum transaction costs.

The last word on Etherium(ETH) and LiteCoin (LTC)

Many people wish to “pit” ethereum and litecoin to figure out which one will come out on top. Both are useful. Both have block times and fees. But when it comes to investing, nothing is ever certain.

A few factors that should be considered in the debate are that litecoin has a 84 million token maximum. While there may be more created in the future, ethereum continues to be made. If you want to really examine the differences, you have to dig deep. The biggest question you should be asking yourself is “What do I want to do with my cryptocurrency?” Once you answer that basic question, nothing else should matter.

If transactions is all you’re looking for, stick with the litecoin. If crowd sourcing and management is your thing, ethereum is the obvious choice. For now, Ethereum cloud mining seems to have the best overall value. The interest in ethereum has piqued within the cryptocurrency community. This could also change at any time down the line. So, do your research.

Miner Mining is an awesome way to get started in cryptocurrency investing. It’s suitable for anyone regardless of whether you are a small-scale or larger-scale investor. It is the alternative to those who want to learn more about bitcoin mining. Miner Mining has many professionals who can provide you with the information you need to succeed.


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