Difference Between Ethereum vs Litecoin
Ethereum is is an open-ended blockchain platform based on numerous systematic algorithm calculations where Ether (functional currency operates) gets traded. At the same time, Litecoin was invented as a cryptocurrency to initiate easy transactions between parties, remove ambiguities, and enhance efficiencies 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 cryptocurrencyCryptocurrencyCryptocurrency refers to a technology that acts as a medium for facilitating the conduct of different financial transactions which are safe and secure. It is one of the tradable digital forms of money, allowing the person to send or receive the money from the other party without any help of the third party service. market, it’s wiser to diversify your basket. To diversify your basket, you need to know which cryptocurrency to invest in.
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Ethereum vs Litecoin Infographics
Let’s see the top differences between Ethereum and Litecoin.
- Ethereum is quite a new platform. It came into existence in the year 2015. Litecoin, on the other hand, came after BitcoinBitcoinBitcoin is a digital currency that came into existence in January 2009, speculated to be created by Satoshi Nakamato, whose true identity is yet to be authenticated. It provides lower transaction fees than the traditional online payment systems, is controlled by the decentralized authority, and is not like government-issued currencies. 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 contractsSmart ContractsSmart contracts are digital transaction protocols that verify, control, and self-execute an agreement, embedded in computerized codes on a blockchain, if parties meet predefined rules. Unlike traditional (physical) ones, these contracts occur among anonymous parties and are enforced automatically without the involvement of any third party. that allow Ether transactions to happen naturally. Litecoin isn’t as smart as smart contracts.
- In the case of Litecoin, there’s a limit. The limit is 84 million tokens. It means at a certain point shortly, there will be no new Litecoin. On the other hand, for Ether, there’s no limit. It would be mined for an indefinite period. So, here’s a big difference between Litecoin and Ether – it is the “scarcity.”
- 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(much less than Ethereum’s transaction fee).
- The block time for each of these cryptocurrencies is different too. For Ether, the block time is just 15 seconds. That means within a minute, and you can confirm multiple transactions. On the other hand, Litecoin’s block time is higher than Ether, i.e., 2 minutes 19 seconds. Litecoin is almost four times faster than Bitcoin.
Ethereum vs Litecoin Comparative Table
|Basis for comparison||Ethereum||Litecoin|
|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 a peer-to-peer cryptocurrency that helps transfer coins without any central authority. Litecoin is created in the image of Bitcoin. But it is better than Bitcoin in terms of transaction fees and block time.|
|Transaction fees||The average transaction fee of Ethereum is higher, and it’s around $0.85 per transaction.||The average transaction of Litecoin is meager, and 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 shortly.
This has been a guide to Ethereum vs. Litecoin. Here we discuss the top differences between Ethereum and Litecoin, infographics, and a comparison table. You may also have a look at the following articles for gaining further knowledge –