These hugely expensive rigs, coupled with the colossal amounts of electricity consumed quickly, made bitcoin mining the preserve of purpose-built mining warehouses and left mining enthusiasts in the cold.īut interestingly, this was to benefit litecoin.
Soon, specially designed ASIC computing rigs were the only machines powerful enough to mine the coins. Litecoin benefits from reduced bitcoin miningĪs bitcoin gained in value, more people wanted to become miners and increasingly sophisticated systems were created. This was important, as by 2011, intense competition meant bitcoin miners without powerful graphics processing units (GPUs) were finding it impossible to mine blocks. What’s more, as scrypt is more memory intensive and relies less on processing power than the SHA-256 algorithm, this meant any computer could mine litecoin. He created litecoin using the simpler “scrypt” algorithm, which reduced block confirmation times to just two and a half minutes. Lee believed this algorithm, with its long confirmation time, would negatively affect bitcoin’s ability to scale up in the future. One significant improvement litecoin had over bitcoin involved the processing power needed for mining.īitcoin uses a complex algorithm known as SHA-256 which takes around 10 minutes to confirm a block. Miners were rewarded with 50 litecoin for completing a block, making the process a very attractive proposition and a huge global network of enthusiasts emerged. If the other nodes verify the proof of work, a new block is added to the blockchain. This prevents the same litecoin being spent twice.Īll being well, the miner shares that solution with the other computers or “nodes” on the network, which is known as a “proof of work”. But before the system will allow this to happen, developers known as “miners” must use their computing power to solve a complex cryptographic puzzle to check the new transactions against the previous ones on the chain. When a litecoin transaction occurs, it must be recorded on a digital ledger known as the blockchain. But what does that actually mean? How litecoin mining works All you needed was a fast computer, a bit of time and you could mine litecoin. One aspect of digital coins that piqued many people’s interest was the fact that they can be obtained for free.
How to start mining litecoin on give mecoins how to#
Litecoin can thus be mined quicker than bitcoin.īut, how to mine litecoin? How to buy litecoin? Free coins By using a different algorithm, litecoin transactions are approved four times faster than bitcoin. One of the main differences between bitcoin and litecoin is the way in which transactions are verified on the blockchain. While many have tried to improve on the original, Charlie Lee’s litecoin created as a fork of the bitcoin blockchain and became one of the most successful new coins launched. The idea of a secure, digital currency that allows fast, cheap transfers to anyone across the globe, while not reporting to banks or financial institutions, created quite a buzz. Since the birth of bitcoin in 2009, developers have wondered if they could do better.
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