Difference Between Ethereum and Litecoin
Ethereum is an open-ended blockchain platform that operates on the basis of numerous systematic algorithm computations where Ether (functional currency operates) gets traded while Litecoin was invented as a cryptocurrency with an intention to initiate easy transactions between parties and to remove the presence of ambiguities and enhance efficiencies and that too at a lower rate.
If you have ever invested in the stock market, you would know how important it is to diversify. It is similar when you decide to invest in cryptocurrencies. Since there’s a lot of volatility in the cryptocurrency market, it’s wiser to diversify your basket. To diversify your basket, you need to know which cryptocurrency to invest in.
And that’s why it’s important for you to understand how Ethereum is different from Litecoin.
- Litecoin has been in the market for quite a while. It came in the year 2011 and since then it has made its name. Among hundreds of cryptocurrencies, making a name for itself tells a story, doesn’t it?
- Ethereum, on the other hand, came quite late, only in the year 2015. But it has grown much faster than Litecoin. The reason Ethereum has become more popular is because of its name. Ethereum has no “coin” attached to it as a suffix. Now, in many buying options, we see the name of Litecoin. But, we don’t see Ethereum as much. But Ethereum has been growing a lot faster than expected.
- In the case of Litecoin, there’s a limit. The limit is 84 million tokens. It means at a certain point in the near future, there would be no new Litecoin. On the other hand, for Ether, there’s no limit. It would be mined for an indefinite period of time. So, here’s a big difference between Litecoin and Ether – it is the “scarcity”.
- Another big difference is the difference in fees. The transaction fee for Litecoin is significantly lower, i.e. $0.04 per transaction. On the other hand, for Ether, the transaction fee is $0.85 per transaction (much higher than the Litecoin’s average transaction fee).
- However, the block time for each of these are significantly different. The block time for Litecoin is 2 minutes 19 seconds; whereas the block time for Ethereum is just 15 seconds, much faster than Litecoin.
Ethereum vs Litecoin Infographics
- Ethereum is quite a new platform. It came into existence in the year 2011. Litecoin, on the other hand, came after Bitcoin, in the year 2011.
- Ethereum is a platform. Ether is a cryptocurrency. Litecoin, on the other hand, is a cryptocurrency. It’s built on blockchain technology.
- The best part of Ethereum is its smart contracts. Smart contracts assist the Ether transactions to happen naturally. Litecoin isn’t as smarter as smart contracts.
- The average transaction fee for every transaction in Ethereum is $0.85. On the other hand, the average transaction fee for every transaction for Litecoin is meager, i.e. just $0.04 per transaction.
- The block time for each of these cryptocurrencies are different too. For Ether, the block time is just 15 seconds. That means within a minute, you can confirm multiple transactions. On the other hand, Litecoin’s block time is quite higher than Ether, i.e. 2 minutes 19 seconds. Although, Litecoin is almost four times faster than Bitcoin.
|Basis for comparison||Ethereum||Litecoin|
|The year it was created||2015||2011|
|How it works||Ethereum is a blockchain platform. Ether is the cryptocurrency that’s created by the Ethereum blockchain platform. The unique feature of Ethereum is the functionality of a smart contract.||Litecoin is created in the image of Bitcoin. But it is better than Bitcoin in transaction fees and block time. Litecoin is a peer-to-peer cryptocurrency that helps transfer coins without any central authority.|
|Transaction fees||The average transaction fee of Ethereum is higher, it’s around $0.85 per transaction.||The average transaction of Litecoin is meagre, it’s around $0.04 per transaction.|
|Block time||The block time of Ethereum is pretty low, i.e. just 15 seconds.||The block time of Litecoin is faster than Bitcoin but much slower than Ethereum, i.e. 2 minutes 19 seconds.|
|Limit||Currently, Ethereum has no limit, meaning no “scarcity”.||Litecoin has a maximum limit of 84 million coins.|
|Smarter||It is a bit smarter than Litecoin; because the Ethereum platform helps Ether transactions happen naturally. That’s why we call them “smart contracts”.||Litecoin has no such functionality.|
Now the question is which one should you pick among these two? The answer is both. Each of these has merits and demerits. And it can give you certain advantages.
To mitigate the risk of losing all, it’s better to put multiple eggs in your basket. It will make your investment safer, reduce the risks, and increase your chances of getting a better return in the near future.
This has been a guide to Litecoin vs Ethereum. Here we discuss the top differences between Litecoin and Ethereum. along with infographics and comparison table. You may also have a look at the following articles for gaining further knowledge –