Litecoin vs Ethereum – LTC and ETH Comparison – Freewallet
In the vast abundance of digital assets, it is difficult to identify a worthy alternative to Bitcoin, but there are cryptocurrencies that are not inferior in popularity to the pioneer. ETH/LTC, the old-timers of the ecosystem of alternative monetary units by cryptocurrency standards, firmly settled in the top five. In some ways they are similar to each other, but there are important differences.
Main differences
From a software point of view, it is difficult to decide which is better – Ether or Litecoin? However, there are important differences between these cryptoassets:
- Mr. Buterin, as history has shown, did not spend in vain almost 2 years on improving the program code. He decided to take a non-standard path and create more than just an ordinary fork of the first digital asset. He managed to develop a new version of the blockchain that differs from the standard version of the decentralized database of the Nakamoto version.
- For the uninformed, Ethereum is just a kind of altcoins, and, of course, it is a digital currency that has firmly established itself in the second position in the TOP list of cryptocurrencies. But in the Ethereum phenomenon, the main thing is the software component.
Ether is a platform that has its own version of the blockchain, focused on:
- Integrating a wide variety of decentralized algorithms:
- Developments into its environment.
Ethereum has become an ideal environment for the conduct of pre-sale tokens of various decentralized startups (ICO campaigns). Naturally, against the backdrop of what is happening, stock quotes have increased significantly. The currency of the same name in the system, although it plays a secondary role, is the main asset of the ICO campaign, which determines the scarcity of these crypto coins and high liquidity indicators.
Another feature of the Ethereum phenomenon should be considered the presence of smart contracts. Smart contracts are designed to regulate financial, legal and other types of issues between network participants automatically and in accordance with the standards specified at the beginning of partnership relations between an unlimited number of participants in the Ether system. That is, smart contracts completely eliminate the possibility of fraud and the occurrence of precedents due to unwanted third party interference.
When deciding which is better – Ether or Litecoin, one should note the comparative simplicity of the LTC software component, which is a definite advantage. This crypto asset was initially positioned as a universal currency intended for fast, secure and cheap implementation of intra-system transfers remotely. Despite some simplicity of the algorithm and the use of the basic version of the blockchain, Litecoin today is not inferior to competitors from the position of a payment instrument, but is in demand only for local purposes. While Bitcoin is increasingly used as a backup cryptoasset, Litecoin is more popular as a means of payment for microtransactions due to its high network bandwidth.
Litecoin or Ether – conclusions
According to some parameters, Ethereum looks more profitable than Litecoin, but given the presence of speculative instruments in the first, it is not known whether or not Ethereum will adequately overcome the problems arising against the background of the creation and implementation of legal regulations for regulating ICO campaigns. In terms of exchange rates, LTC is cheaper to acquire, which attracts a substantial number of depositors.
Considering the advisability of investing in Litecoin, Ether, Bitcoin and other cryptocurrencies, it would be wise to hedge risks by creating a portfolio of different digital assets.