Bitcoin is one of the most ambiguous phenomenon of the last several years. Unbelievableincrease in the price have made one of the most interested places for the potential investors. More and more people all around the world are joining the mining of coins, hoping to reach the wealth. Four years ago, Bitcoin showed an extraordinary achievement – more than one million transaction per day. It seems to be a real revolution in the world economy. However, the lack of knowledge about cryptocurrency industry throw the ordinary people interferes them to see advantages and disadvantages of the virtual units. How the limit influence on the price? What does mean fork in crypto business? What is the difference between bitcoin and ethereum and litecoin? These points are not known to the major part of the society and causes distrust to the cryptocurrencies. Moreover, it threatens the virtual currency. We are going to show you on the example of difference between bitcoin and litecoin.
But before we start, it will be good to observe the global situation over the Bitcoin and other types of virtual exchanging. It is an obvious fact that now we are living in the period of innovations. Some researchers even called this period as fourth industrial revolution. Nevertheless, technologies play bigger role now than in past. Moreover, the speed of implementing them to our lives is so high, that we can even not to mention it. Just remember the world ten years ago. Square TVs, mobile phones without touch screens, unbelievably slow internet, mobile internet was just coming on the market, first concepts of electric cars and distrust in them and many other. Quicker than in this period some of these technologies not only became and obvious facts – it became old. Can you imagine your life without internet?
In addition, major part of these innovations were also criticized. A lot of people thought that technology of electric engine would not become cheap and never become a product for masses. As you can see – they were wrong. Every year more and more new elctrocars are appearing on our roads and even in not high-developed countries. The same situation is happening now to the cryptocurrency. Quick development of Bitcoin and Ethereumsowed doubts among the society. Many people think that it is a big speculation and they do not want to struggle because of it. However, it is unjustified prejudices, but they have some truth in the fear.
Bitcoin as any other cryptocurrency is not a usual unit for exchange. It is a Blockchain with special information. Any miner, who has a wish to create coins, should program his equipment to make blocks with information that requires the currency he wants to achieve. Usually requires differs, so there is no common script for mining. When you reach the need number of blocks and from the chain – you get the coin. The process of mining contain a sort of problems related to the electricity and power of the equipment, but these problems are not the theme of this text.
While you are creating the chain, other users can use you side blocks to create their ones. If the side chain stay alive in time, it becomes a fork. Moreover, these forks can help Bitcoin to scale. The problem is in the limit of the coin. Today it is 1 megabyte. This size guarantees the protection for the owners from the attacks, but slow the transactions. It is because of growing the number of users, and the size cannot serves all of their activities.
Forks can create another type of the cryptocurrency. What is the difference between litecoin and bitcoin? The first one is a fork of the second. Usual bitcoin has also limit of maximum number of the coins. Side forks are also the decision to solve this problem too. Litecoin is one of the forks, there are also another. However, this one shows the highest increase in price in the latest time, so the information about it is more actual.
Nevertheless, the question, what is the difference between bitcoin litecoin and ethereum, among the users does not give the clear view on the future of the cryptocurrency. All of them are in conflict with states, because they do not like emission beside them. These limits having good protections for the miners and owner stops the development of the business. Fork are not the final decisions. They are going to have their own forks and the process will continue until it becomes unprofitable. Developers of the cryptocurrency should find another way to scale their products if they want to earn more. Nevertheless, these problems are not feeling so bad now, so any action in this way are not going o done in near future.