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Created page with "== SHA256 mining vs scrypt mining == right For purposes of proof-of-work Bitcoin network uses highly parallelized SHA256 hash functio..."

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== SHA256 mining vs scrypt mining ==
[[File:Bitcoin Litecoin.jpg|right]]
For purposes of [[proof-of-work]] [[Bitcoin]] network uses highly parallelized SHA256 [[hash]] function. [[Litecoin]] in turn uses Scrypt instead of SHA256 performance of which is dependant on access to large reserves of memory so that running several Scrypt-processes on current generation GPUs is highly resource-intensive. This also means that building [[ASIC]] designs for Scrypt is far more difficult and expensive task than for SHA256. [[Mining]] LTC with CPUs isn't profitable because of their little memory resource.

=== Advantages of Scrypt: ===

* Getting started with LTC [[mining]] is far more cheap compared to BTC. Any PC owner can start to mine and support the network. It's even possible to [[Mining|mine]] with CPU though this process is ineffective. It is recommended to use GPU for LTC acquisition. High accessibility of [[mining]] devices allows the LTC network to be far more decentralized.
* With [[mining]] principles of BTC there's always a danger of some person or group to invest immense amount of money into [[ASIC]] devices and thus centralize the [[mining]] process. The Scrypt protocol requires high amounts of memory to mine fast and memory is the most expensive component when building [[ASIC]] designs.
* LTC [[mining]] sowtware can be easily built into web sites, which allows random users to support LTC network with free CPU cycles while browsing.

=== Downsides: ===

*Botnet attacks. Botnets with high [[hash]]-rates (compared to entire network) can try and conduct a [[51% attack]]. Because of lack of major miners in the network it's easier to realize such an attack in LTC than in BTC.

== Decreased time of transactions ==
On average the [[Litecoin]] network finds a single [[block]] once in every 2,5 minutes, compared to 10 minutes in BTC. Accordingly transaction processing and approval is conducted much faster.

=== Advantages: ===

*Huge number of people want to see their money as fast as possible.
*Fast [[block]] discovery allows shops or services to accept transactions with 2 5-minutes approvals without having to make the client wait. (In [[Bitcoin]] network they have to wait for at least one approval for ten minutes).
*Because blocks are discovered so frequently more miners earn their rewards and can spend them faster than BTC.

=== Downsides: ===

*The more blocks the longer the [[blockchain]]. The longer the [[blockchain]] the more space it takes in user's PC memory.
*If the amount of transactions rises significantly then the time needed to approve signature in every [[block]] rises accordingly.
*[[Security]] problems, which include much cheaper implementation of [[51% attack]] than in BTC.

== Difficulty adaptation==

In [[Litecoin]] network [[difficulty]] changes every 2016 blocks (just like in [[Bitcoin]]) but because blocks are found four times more frequently the [[difficulty]] is adapted every 3.5 days.

=== Advantages: ===

*If most of [[Bitcoin]] network switches off reaching [[difficulty]] change point will be rather hard and long. In [[Litecoin]] this process will happen quicker.

=== Downsides: ===

*Unstable [[difficulty]] may provoke users' switching from one [[blockchain]] to another.
*Lower protection from attacks that deliberately lower [[difficulty]].
*Small intervals between [[difficulty]] changes may lead to inaccurate [[difficulty]] rates.

== Total amount of "coins" in network ==
<div style="display:none"><div id="coinmarketcap-bitcoin"></div></div><div class="coinmarketcap-currency-widget" data-currencyid="1" data-base="USD" data-secondary="BTC" data-ticker="true" data-rank="true" data-marketcap="true" data-volume="true" data-stats="USD" data-statsticker="false"></div>
Entire amount of Litecoins to be emitted is four times more than of Bitcoins (84 millions compared to 21). Initial reward for a mined blok in [[Litecoin]] network is 50 LTC. Every 840000 blocks the amount of coins per [[block]] is cut in half.
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== Principal concepts Litecoin: ==

1. Transactions are 4 times more fast than in [[Bitcoin]]. The network pays for that with somewhat decreased protection from attacks.

2. Low barrier to entry. User just needs CPU or GPU to start [[mining]].

3. Coins amount is four times more than in [[Bitcoin]] network.

To sum this up, [[Litecoin]] to [[Bitcoin]] is what silver is to gold - a less precious currency which is easier to mine and easier to operate.

== См.также ==
*[[Mining]]
*[[Bitcoin]]
*[[Litecoin]]
[[ru:Сравнение биткоин и лайткоин]]
[[es:La comparación de Bitcoin y Litecoin]]

[[Category:Mining]]
==See Also on BitcoinWiki==
* [[Coin-Daddy]]
* [[Hash Exchange]]
* [[James-b.ch]]
* [[Spare Change Payments]]
* [[Bitcoins.aunz.ws]]

Bitcoin and Litecoin comparison - Revision history

Admin: Created page with "== SHA256 mining vs scrypt mining == right For purposes of proof-of-work Bitcoin network uses highly parallelized SHA256 hash functio..."