While debating Cryptocurrencies than with Bitcoin we have always heard Litecoin and Ethereum so what is the Difference between Litecoin vs Ethereum.
In this competitive world, many Altcoins are competing with each other and struggling to grow in the market but Litecoin and Ethereum have already proved their importance in the market.
Currently, the world is struggling with the inflation rates and central government regulations to trade in the open market.
To solve these problems and to remove the intermediate party, Cryptocurrency was first time introduced in 2009 as Bitcoin.
Then as a technology changed from time to time and now we are way ahead than what we created as Bitcoin.
In this race of Litecoin vs Ethereum, which are among the most popular Cryptocurrency to discuss and to answer which one is the best and Why, this guide is the ultimate source of information.
The idea behind having this guide is to highlight all the possible nature of both Altcoins which may help you to decide.
Before that let me summarize what is Litecoin and What is Ethereum and then will discuss about Litecoin vs Ethereum.
What is Litecoin?
Litecoin was first introduced in the year 2011 by the Ex-Google Employee Charlie Lee, the idea behind the creation was to solve the problems associated with Bitcoin.
Bitcoin is the first ever cryptocurrency introduced based on the decentralized blockchain technology.
Bitcoin is having prime issues like Scalability and mining difficulties and to overcome those and to create a lighter version of Bitcoin, Litecoin has been introduced.
Litecoin is the hard fork of Bitcoin, where the same blockchain replica has been created with some major changes.
Hence the only use case of Litecoin is to be used as a cryptocurrency only, Bitcoin has a total circulation supply of 21 Million however Litecoin has 84 Million Coins.
To learn more in detail about Litecoin, check our detailed guide on What is Litecoin and how it works?
Now, will discuss in brief about Ethereum.
What is Ethereum?
Ethereum is a blockchain based decentralized cryptocurrency platform, introduced by Vitalik buterin back in the year 2014.
Bitcoin is known as the first generation of Blockchain technology and Ethereum is the second generation of blockchain technology.
Ethereum has introduced a new use case of Blockchain technology other than as a cryptocurrency and that is Smart contract creations.
On Ethereum Blockchain user or any party can create a smart contract, which allows settling payments when certain agreed conditions completed on the network.
Ethereum has also solved the problems associated with Bitcoin at certain levels and because of the smart contract, it becomes the second most cryptocurrency in the market after Bitcoin.
To learn more in detail about Ethereum such as what is Ethereum and future of Ethereum you can check our detailed separate guide.
I hope after reading those guides you got an idea about what is Litecoin and Ethereum in detail.
Lets now highlight the major differences in between Litecoin vs Ethereum.
Litecoin vs Ethereum Major Differences
Well, if you have gone through the above-listed guides than you already got an idea why both are different and how they work.
Below listed points will highlight all those differences in the summary.
Use of Litecoin vs Ethereum
Litecoin is created as a Hard fork of Bitcoin to create a light version of Bitcoin. The only aim behind the creation is to introduce a new form of Cryptocurrency.
Bitcoin is having the limitation of the total supply up to 21 million and Litecoin has increased this to 84 million coins.
You can use Liteocin as an only digital asset or cryptocurrency to replace existing fiat or centralized form of currency like USD, EUR, GBP.
While referring the Ethereum, it is way more than the only cryptocurrency, Ethereum has its own coin called Ether Coin (ETH) which is traded as Cryptocurrency.
However, Ethereum blockchain offers developers to build Decentralized Apps upon it and the best part is to allow building smart Contract.
Smart Contract will help party A to set a contract with Party B that if certain conditions occur special settlement will happen on the blockchain network.
This is far useful if you are planning to set such a contract with Insurance companies or your employee.
Hence use case of Ethereum is to build the new digital world upon Ethereum blockchain network, learn here the future of Ethereum.
However, Litecoin and Bitcoin are just Cryptocurrency only which may be accepted or not accepted somewhere in the future.
How LTC and ETH works?
While we talk about Cryptocurrency or decentralized blockchain technology how could we forget about mining?
Well, learn here what is Mining and how Proof of stack and Proof of Work works in mining?
Litecoin is following the same mechanism of Bitcoin called Proof of Work(POW). As mining is the only way to validate transactions and create a block in the blockchain.
The change with Litecoin is using Scrypt algorithm to validate transactions which means the difficulty of block solving will not be tough as other Proof of Work mechanism.
It has blocksize of just 2.5 minutes each which means every transaction which requires 1 confirmation to validate will clear in just 2.5 minutes.
Hence while covering the transaction speed per second for Litecoin is around 56 Transactions per second and the average time to reach Litecoin in end wallet is around 30 Minute.
Ethereum has also used the same Proof of work Mechanism but called Ethash and this cause it has the same complexity as Bitcoin.
While referring to the block size of Ethereum. it is based on the complexity of contract but on average the current time to verify any blocks is around 10 to 20 seconds per block.
Which explains that currently, Ethereum is able to clear max 15-25 transactions per second and the average time to reach Ethereum in end wallet is around 6 Minute.
It proves that Litecoin is able to clear more transactions per second but an average ability to process transactions is less than Ethereum.
For every successfully mined block, a reward will be given to miners as the basic rule of the bitcoin blockchain network.
Litecoin vs Ethereum Price History
Well if you are investors or any person who is interested in Litecoin project is always keen to see the past history of Litecoin.
While checking this with Litecoin, when it was first introduced its price was around 4$/Coin which by January 2018 reached to around 313$/Coin.
This explains, how much this coin was popular among all the Crypto investors.
From the above trend, you can see the price movement and a very huge spike in Jan 2018 which is very hard to believe but sudden after that as the whole crypto down it also down.
Currently, Litecoin is traded around 72$/Coin, whether you should buy Litecoin or not? For that, we have analyzed in the separate guide which you can refer to get the idea.
Referring to the Ethereum, it is most interesting to discuss as this become the follower of Bitcoin, whenever the Bitcoin price up observed the price in Ethereum also spiked.
Back in the year 2015, 1 ETH price was around 0.75$/Coin and till May 2017 it reached to 13$/Coin and by end of 2017 and beginning of 2018, it reached to 1340$/Coin.
Ethereum has very good community support, which ensures its future growth possibility but if you ask me Should I buy Ethereum than I would suggest having a look for a separate guide.
Ethereum is currently trading around 170$/Coin which may up any time in future as still many more ICO is running on Ethereum blockchain network.
Competition and Partners
Litecoin was created in the year 2011 when cryptocurrency was the only use case of blockchain based decentralized technology.
It has just solved the basic scalability problems with Bitcoin and increased the total circulation supply and made mining difficulties bit easy.
It was good enough until the smart contract was introduced by the Ethereum and other than Cryptocurrency developers can use that blockchain network to build DApps.
Referring to CoinMarketCap, around 2000+ cryptocurrency is currently traded in the market for which everyone has their own use case.
I can assume that Litecoin is struggling to fight with each one of them and solemnly depend on its community that how long will they believe in it.
On another side, Ethereum is providing smart contract and reason to the big organization that to use Ethereum blockchain network to build smart contract upon it.
Which is somewhere fulfilling the demand of the market and that is what the reason many big companies have partnered with Ethereum.
Uber and Airbnb like companies have started using the Ethereum blockchain network as a pilot project.
Few others listed below, who are working with the Ethereum blockchain network.
Ethereum Blockchain network requires to pay Ether coin (ETH) as transaction fees for any transactions happen on the network.
Which means if wide adoption in the future will in result more demand of the Ether coin(ETH).
But Ethereum is able to clear only 15-20 transactions max per second which is causing people are debating EOS as an Ethereum Killer
EOS is also providing a smart contract with more scalability and much more advanced feature.
EOS has the current ability to clear 4000 TPS and the ability to scale up to millions of transactions per second, check separate guide in detail about EOS vs Ethereum.
Litecoin vs Ethereum as a Payment?
Let change the perspective as the adoption of both as a payment method or cryptocurrency only.
Well, Ethereum transaction clearance time is 6 minute as compared to 30-minute Litecoin which means not that Ethereum is faster than Litecoin.
On Ethereum blockchain network many more smart contracts are also running along with cryptocurrency trading.
Which means Ethereum has more transactions per second as compared to Litecoin, which may fill the network somewhere in near adoption.
If any Apps running on Ethereum network having more than usual transactions which means it’s acquiring the space on the blockchain network.
Litecoin is storing only payment data and there will be no other transactions happen in the network.
Which means with wide adoption no more conjunction as compare to Ethereum network.
That makes sense, that Litecoin is far better as compared to Ethereum in terms of payment method adoption.
My View on Litecoin vs Ethereum
Technology is turning day by day and every time new ideas are evolving around the world and the adoption of that will totally depend on the use cases.
Both Litecon and Ethereum is based on blockchain technology and their adoption is done based on different aspects.
Litecoin has been accepted as a Cryptocurrency only and there is no other use case but Ethereum is not only the cryptocurrency but providing a smart contract.
Etherum has a wide adoption as compared to Litecoin and very strong community support behind it.
Ethereum is at number #2 position in total market capitalization after Bitcoin and Litecoin at #5 position in total market capitalization.
Future of Cryptocurrency is uncertain but the adoption of blockchain technology is for sure, so do your own intelligence to which you should go for.
For best investment guide check out Top Altcoins list you may like the most.
This is an end of the ultimate guide on Litecoin vs Ethereum and let me share which will win the race in the future.
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