A Primer on Litecoin
A Cryptocurrency, sometimes called a digital currency, is a computer program that is used as a method of payment for goods and services in the Internet. A virtual coin, such as Litecoin, Featherstone, or DoCoins, can be “minted” or issued from a software program via the Internet or through a process known as “wallet transfer.” A cryptocoin is generally not recognized by conventional money for purposes of purchase or sale, although some have been recently added to the Standard Catalog of Business Acceptance (SCAA) to be listed as an alternative form of payment. The most popular digital currencies are Bitcrystals and Litecoin.
Various forms of currencies are being developed all the time and some of them are already in circulation. At this point in time, there are currently three major cryptocoin options available: Litecoin, Featherstone, and DoCoins. A Litecoin is a version of the Liteboard currency and is used as payment for web pages and other services. Featherstone is a digital asset that functions like an IOU. And DoCoins are one of the more unique forms of currencies because they are not backed by any type of tangible assets, like gold or silver. However, unlike traditional currencies, which are backed either by the U.S. dollar, the European Union’s Eurosystem, or the Japanese yen, these types of currencies are backed by cryptosporters, who agree to trade their coins in return for payment of fees or other agreed upon payments.
It would be an interesting historical perspective to examine how far in the future these three coins will be recognized as legal tender. At this time in history, the use of cryptosporters to back the different currencies in circulation has been minimal and there is virtually no demand. One reason why there is little demand for the first Cryptocurrency was because of the extreme volatility of this economy at the time. People were not taking advantage of this because they had no idea it would become as popular as it did.
With the invention of Litecoin and other lesser known cryptographic currencies, the time to introduce a legal tender for cryptosporters became more imminent. In order to facilitate this transition, a system was created that would allow traders to both purchase and sell between multiple blockchains and for their investments to be tracked in real time. The ledger is called the Litecoin ledger and is managed by its creators at Liteboard, a company that is an Open Source software project. Because this type of system requires real time transactions to be conducted between multiple addresses, the Liteboard software was created.
Unlike regular Cryptocurrencies, which are issued by a central authority, this system is operated via a decentralized network. While this decentralization may not always benefit all users, it is an attractive feature for those that want their investments to be kept private and secure from abuse. Unlike most currencies that are backed or traded by a central authority, Litecoin is completely customizable. Developers can make changes at their leisure to make their portfolios more profitable.
Currently, Litecoin and other new currencies are seeing strong growth in market cap. This is due to the fact that Litecoin and other Cryptocurrencies are priced well below the costs of legal tender and because of the lack of supply. As more people learn about how easy it is to use and how trustworthy Litecoin is, this type of Crypto will become more popular. With its low cost, easy availability and wide range of applications, Litecoin has the makings of a great new venture in the world of Cryptocurrencies.