We have heard it, Bitcoin the digital gold with a share of value and Litecoin the silver to it.

Litecoin, an another alternate currency was created by Charlie Lee, an ex-googler and was head of engineering at Coinbase, to overcome the shortcomings of Bitcoin.

Below are a few penned down differences between the two currencies;

Bitcoin

Litecoin

Method of mining is similar in both networks

Method of mining is similar in both networks

10 minutes to generate a block

2.5 minutes to generate a block

Uses SHA-256 hashing algorithm which involves calculations with parallel processing

Uses SHA-256 s-crypt algorithm with serialized which involves calculations with serialized processing

Intense race to mine using ASIC technology makes it longer and harder to generate a block

Much easier to mine and generate a block as opposed to Bitcoin

Hashing rate of the bitcoin network is over 20,000 Terra Hashes per second

Hashing rate of Litecoin network is over  95,642 Mega Hashes per second

Can handle lesser number of transaction as opposed to Litecoin

Can handle large number of transactions as compared to bitcoin

Chances of orphaned blocks are lower

Chances of more orphaned blocks due to higher volumes of blocks generated

Transaction differences

The main difference is that litecoin can confirm transactions must faster than bitcoin. The implications of that are as follows:

  • Litecoin can handle a higher volume of transactions thanks to its faster block generation. If bitcoin were to try to match this, it would require significant updates to the code that everyone on the bitcoin network is currently running.
  • The disadvantage of this higher volume of blocks is that the litecoin blockchain will be proportionately larger than bitcoin’s, with more orphaned blocks.
  • The faster block time of litecoin reduces the risk of double spending attacks – this is theoretical in the case of both networks having the same hashing power.
  • A merchant who waited for a minimum of two confirmations would only need to wait five minutes, whereas they would have to wait 10 minutes for just one confirmation with bitcoin.

Source: https://www.coindesk.com/information/comparing-litecoin-bitcoin/ and Quora

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