Mining Litecoin is a standout amongst the most looked terms in the crypto specialty these days, so this influenced me to figure for what reason not ritual one here. So today here at BlockchainBiome I’m going to share a beginners guide to Litecoin mining with you, which will clear the entirety of your questions like what is Litecoin Mining, how does it work, litecoin mining pools, a few litecoin mining software and of course a portion of the best litecoin miner 2018. So without squandering additional time how about, we begin mining litecoin.
Is it that easy? Everything that we talk of? Is it some kind of child’s play?
No, sure not.
Money is not that easy and getting money right into your pocket isn’t that easy either. Yes, money, like other materialistic things, does not mean true happiness of the soul, but it definitely feels good to afford and buy a Lamborghini, a Rolex, a Cartier band, a multi-million-dollar house, right?
Money has evolved far from being just a necessity. Now, you need money to not only afford everything but to actually be sane and maintain your peace. As the world progresses, competition is getting fiercer, jobs are getting harder to attain, and earning money is becoming more tedious as a result. But, the past couple of years have seen the growth of new ways to earn money more efficiently and quickly. One such way is known as the cryptocurrency.
Mining Litecoin as a terminology was founded by Satoshi Nakamoto which was a group of people publishing a research paper on Bitcoin by the name ‘Bitcoin- A Peer-to-Peer electronic cash system’. The Bitcoin was launched after the research paper which helped in reducing double spending using a peer-to-peer network and was totally decentralized. Charlie Lee, a software engineer employed with Google, coined the term Litecoin, a modified version of Bitcoin in 2011. Litecoin was considered a faster mining option as compared to Bitcoin and also, its basic fundamentals were similar to Bitcoin. Litecoin is a well-known form of cryptocurrency that is traded on stock exchanges, such as GDAX. In technical details, the form of cryptocurrency displays similar traits as Bitcoin
What is Litecoin?
Before we get into mining Litecoin, it is first important to know what Litecoin really is. Therefore, let’s begin with that first.
Litecoin is the brainchild of Charlie Lee, an ex-Google employee, who wanted to create a lighter version of the infamous Bitcoin, for the masses to understand and utilize. On 7th October 2011, Litecoin has introduced the world through an open-source client on GitHub, and the network went live on 13th October 2011. Bitcoin was perceived as ‘gold’, a store value for long-term uses, whereas Litecoin was seen as ‘silver’, a great way for daily and cheaper transactions.
Litecoin has made news headlines in 2018, mostly because of its rapid growth in popularity and usage. According to CNBC, Litecoin had hit a record high, up nearly 1,400% this year. Adding to the good news, Litecoin also rose in its rankings to emerge as the fourth-largest cryptocurrency in the world. All these just go to show how good Litecoin is, which is why people from everywhere prefer it.
To truly understand what Litecoin is, a comparison of it with Bitcoin is a must. When Litecoin was revealed, it was largely influenced by Bitcoin, which is why a comparison would reveal what Litecoin exactly is. Hence, let’s go through how Litecoin differs from Bitcoin: –
- A difference in lifetime cap – Bitcoin, probably the world’s most famous cryptocurrency, has a lifetime cap of 21 million coins, and its currency is further along in terms of its growth cycle. This means, that, fewer coins are available for Bitcoin. On the other hand, Litecoin has a lifetime cap of 84 million coins, exactly four times more than Bitcoin.
- Litecoin offers a faster block generation – The most important part of cryptocurrency mining is a faster block generation. Rewards can be earned only when the blocks are generated. Therefore, the faster on generates those blocks, the better the rewards. Litecoin has a block generation time which is 2.5 minutes, as compared to that of Bitcoin, which is 10 minutes. Hence, Litecoin’s transactions are confirmed approximately 4 times faster than those of Bitcoin. Impressive right?
- A difference in proof of work algorithm – The proof of work algorithm between Bitcoin and Litecoin are very different. Bitcoin uses the SHA-256 algorithm that favors systems possessing the largest processing power during the process of mining. For this, the higher the processing power, the better. On the other hand, Litecoin uses a Script algorithm, which is designed to take a different approach and favors those systems that possess the largest amount of RAM for mining. Computers possessing powerful graphics cards that were used regularly for Bitcoin mining in the past and are rarely utilized today can easily be repurposed for mining Litecoin. The Scrypt algorithm is also favorable for people with basic home computers.
How does Litecoin mining work?
In simple terms, mining Litecoin uses ‘proof of work’ algorithm system to solve the transaction equation in a blockchain. To send a Litecoin, transactions are firstly put in a block. Next, a Litecoin Miner verifies the transaction by a proof of work algorithm. The best Litecoin miners working on the transaction solution help in the release of Litecoins, the transaction is further verified and added to the public ledger which is known as ‘blockchain’. The litecoin miner then checks the incoming transaction against all the previous transactions in a blockchain. In-case, no double spends are found, the miner then creates a new transaction and add it to the existing blockchain.
All the new blocks are sent to the nodes in a network and are then verified to transmit then further across the network. After each block is mined, the miner is paid incentive for their contribution of hashing power to the network. Litecoin in the crux, serve as counterfeit currency for trading, similar to Bitcoin and is the new hit among the cryptocurrency market. Litecoins can be purchased either as a result of the mining litecoin or through a listing exchange.
The Difficulties with Mining Litecoin
Mining Litecoin is done under a secure set of networks with specialized hardware and software to ensure the safety of transactions which is a costly and time-consuming process. Litecoin mining faces difficulty since it is an algorithm equation which requires updating on the basis of a total network hashing power to make sure that Litecoin blocks are created every 2.5 minutes. Also, the vulnerability of the cryptocurrency to failure in the market, fraud threat and stock exchange slump also hovers upon Litecoin mining.
As soon as the price of a Litecoin increase in the stock market, the litecoin miners start pointing has power in the network and requires continuous balancing in order to regulite the price and stock exchange fluctuations. Another difficulty of mining Litecoin is the reselling cost of the hardware is low, that most people do not take up installation cost and hence prefer a secure means of trading on Litecoin exchanges instead of earning through Litecoin mining.
The profitability and reward: Litecoin mining calculator
There are a number of litecoin mining software available in the market that helps calculate the profitability index of the hardware and software installation against the gains achieved from the Litecoin mining. The profitability calculation of Litecoin depends to a great extent on the price of Litecoin, electricity costs, hash power of the hardware as well as the hardware installation cost. For the miner, a 25 Litecoin reward is given on solving every transaction block equation to provide for the flow of the Litecoin into the system.
What makes a Litecoin Different from Bitcoin?
Litecoin is often considered similar to Bitcoin but the cryptocurrency marks its own distinction the market and trading industry. Developed in 2011, holding close proximity to bitcoin, a few of the different features of Litecoin mining are:
- The cap of the currency is for the lifetime– Litecoin holds a lifetime cap of around 84 million coins, which is close to 4 times more than the bitcoin which has a cap of around 21 million coins. Also, the currency is still in the growth cycle and can achieve higher coin cap in the coming future as fewer coin availability can often translate into a higher value for each coin.
- The block generation is faster in Litecoin– The mining under the Litecoin is faster as compared to bitcoin, hence faster block generation and more easy rewards and flow generation. A litecoin’s total block generation time span is 25 minutes against the bitcoins’s 10 minutes block generation time span, as a result, the Litecoin transactions are 4 times faster than bitcoin transactions.
- The differentiation in proof of algorithm– Litecoin uses a script algorithm and bitcoin uses the SHA-256 algorithm. An SHA-256 algorithm has the largest processing power during mining of bitcoins while script algorithm uses random access memory for mining. Bitcoin requires special software installation and algorithm system while Litecoin can be solved by basic computer users also.
Litecoin Mining hardware
The computers used for Mining Litecoin are formally called as ‘rigs’. One can use a simple computer to start mining using the right software, joining a litecoin mining pool by using the right hardware or purchasing a rig. When Litecoin had initially hot the runway, it was possible to conduct litecoin mining using a normal computer through a Central Processing Unit (CPU) and a Graphics Processing Unit (GPU).
The key types of litecoin mining hardware that can be used for mining litecoin are:
- Application Specific Integrated Circuit (ASIC)’s– These are more powerfully designed hardware system functioning better than CPU and GPU to support litecoin mining. The ASIC dedicated hardware machine helps save on electricity, has high mining power and helps increase ROI when calculating the mining expenses against the rewards. ASIC can be also used for mining other types of cryptocurrencies or even mine two cryptocurrencies simultaneously.
- Antminer L3+: By far the most popular hardware used for fastest litecoin mining has been Antminer L3+ and is manufactured by the well-known company called BitMain. The Antminer has a hash mine rate of 504MH/s which solves a mining puzzle fastest than any other hardware in the market.
Best Litecoin Mining Pools
Pools are nothing but just a group of people who wants to mine or simply group together to mine some big amount of blocks so that they can get much discounts and after that they’ll slip the profit in between.
What’s important about mining pools is that its reputation. So before joining a pool make sure to check its reputation.
A reputed pool provides you higher stability and progress.if we talk about profitability,you must know high hash rates i.e the avg of profit should be lower.
Some of the popular best litecoin mining pools are listed below:
Ant pool: Asia’s biggest mining pool operated by Bitmain tech ltd. As per successful transaction they charge 2.4% fee despite of this they have server maintenance and payments delayed issues which affects its reputation.
BTC top: It is a private pool so no new user are welcomed. It is open for specific persons only.
BTC.com: It is operated by same company that owns Antpool. Users get paid through PPS system at a transaction fee of 1.5% with satisfactory reputation.
BIXIN: Binix is also one of the best mining pools out there but it is recommended for the Chinese users only as operated in china. One of the best thing which attracted me is that they also provide sameday payout policy. After all it is the highly reputed mining pool.
F2pool: Its servers was in china. And user can mine on bitecoin, Litecoin and Ethereum but it takes high charges of 4.6%. Although it’s reputation is good.
Slush: Do you believe? it is one of the first mining pool which allows user to mine bitecioin and zec. As it charges 2% fee for btc and 0% for zec which is very little so best pool for new minners.
Setting up a Litecoin wallet
With all the trading currencies, the general storage has a banking system to store the physical currency. For cryptocurrencies such as litecoin and bitcoin, one also needs a virtual storage place to store the coins and have an account maintain their trading structure. A very familiar pattern to storing the stock exchanges has been designed to store, maintain and trade Litecoins in the market.
Unlike all other means to store money, a litecoin or bitcoin wallet comes with more secure encryption to trade the money. This is due to the high risk involved in the transaction of coins. A simple storage of litecoin requires a virtual wallet with a high storage space. A wallet comes with an encryption to secure all the trading and is usually encoded by a password or general code. The wallet is used to view balance and is safe for conducting transactions from both personal laptop and mobile phone. The wallet also on a side note displays to the record of all the transactions as well as the current Litecoin pricing of the market.
Two major types of Litecoin wallets used are:
- Cold Wallet: The cold wallet performs all the major Litecoin wallet functions and is encrypted by a password. They require an internet connection for proper functioning. The cold wallets are used by people dealing on large sums of cryptocurrency as they generate key pairs on air-gapped computers and come with a large storage space as well.
- Paper wallets: The paper wallets are used like bank accounts with a key that is available in physical form as QR codes. They also come with strings of numbers and letters. Paper wallets are also known as ‘brain wallets’ as they come encoded with a series of seed words that are used to regenerate a private key.
Wrapping up Mining Litecoin
If you are new to this whole mining process, or you want to start out slowly, the best thing to do is to join a pool and measure the results. As a result, the payment will be more frequent, and you can earn as you start to learn about Litecoin mining. So, time to get your horses going in the right direction my friend. So, let’s pull it off the way we want it to and get along with Litecoin mining. Hope you have an experience worth the penny that you put into it.
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