Facts to Know About Litecoin Mining
April 24, 2018
The cryptocurrency has not only become a subject of interest for investors, but it has also attracted many beautiful minds across the world. The challenging questions and tests have attracted the interest of programmers who look to prove themselves. There are several crypto coins such as Bitcoin, Litecoin, Ethereum, Dogecoin, etc that are being mined across the world.
The Litecoin is an upcoming cryptocurrency which has started to catch along with prominent crypto-coins such as Bitcoin, Ethereum, Ripple, etc. Just like the crypto coin Litecoin, mining of Litecoin is also becoming popular. The reason that Litecoin is popular because of only 84 million LTC ever existed that created scarcity. The Litecoin transaction fee is also done at cost-effective rates that can really be sent across the world.
But as the Litecoin has started gaining prominence, the competition has also been fierce. This has made the process of mining Litecoin much harder for miners. Here are few things that you should consider while mining Litecoin which will help you perceive the process of mining.
It is essential to have hands-on cutting-edge mining hardware that would not give up at the last moment. The Litecoin miner couldn’t use the same hardware as Bitcoin because of different proof of work function. There are many graphic cards available for Litecoin mining, but they are mostly non-profitable. There is a hardware for miners who take mining seriously which is known as Antminer S7. The Antminer S7 is for mining Bitcoin which can be later used to Exchange Litecoin for Bitcoin.
Unlike many prominent crypto coins such as Ethereum, Bitcoin, and 21coin, the Litecoin doesn’t use the SHA-256 algorithm for mining but instead, it uses Scrypt algorithm. The Scrypt is a password-based key derivation function that keeps the data secure with the help of password. The Scrypt algorithm is an alternate mining algorithm that is used by crypto coins such as Litecoin and Dogecoin. Although this algorithm is secure the algorithm requires more space compared to crypto coins that use other algorithms.
Although the Blockchain technology was invented by Bitcoin when it was first introduced, it was perfected by other crypto coins. The Blockchain works differently for each cryptocurrency but the basic function of Blockchain remains the same where it securely stores the data where it cannot be corrupted. The Blockchain technology gathers all the information regarding the transactions, account details, etc in a tree structure also known as Merkle trees.
There are many wallets that can be used to store Litecoin. Many miners look for wallets after they acquired some Litecoin, and find cheap and un-reliable wallet solution in haste. It is recommended by many experts to settle on a wallet before you start the mining process. There are many wallet options that use private keys which ensure the complete security of the coins in the wallets.
The mining of crypto coins have become extremely competitive sector, therefore, it is important to be better than other miners if you want to make a profit. The above-given factors will help you mine Litecoin in a proper manner. If you are looking to mine Litecoin then you can use these data for information or you can mine for Bitcoin and then exchange it instead of Litecoin.