Litecoin Vs Ethereum: Comparing Bitcoin Spinoffs
Since Bitcoin hit the market, there have been a number of other cryptocurrencies that have come about. Two of the currencies that have continued to grow and gain market share are Litecoin and Ethereum. These coins have a lot in common, but are also different in many ways. It is important to know more about each coin if you are looking for an alternative to Bitcoin.
Litecoin Vs Ethereum: Functionality
When you look at the growth trajectory of these coins, you will see that it is one of depth versus breadth. Litecoin has taken the approach of serving a single function and is doing this extremely well. Ethereum, on the other hand, is looking to enable a range of new applications.
Litecoin was designed to do one thing and that was to allow people to make everyday transactions in an effective way. This resulted in a code for the coin that is almost identical to Bitcoin with a couple of changes. Litecoin has a larger coin supply, a faster block rate and fewer coins mined by the creator. The rate of new blocks is very important with Litecoin and is around 2.5 minutes.
While Litecoin has focused on transactions, Ethereum has focused on empowering developers to make any type of decentralized application. This led to Ethereum being flexible and able to support a diverse ecosystem. The problem with this functionality is that it is more prone to high-profile security issues.
Litecoin Vs Ethereum: The User Base
When it comes to looking at the user base of a cryptocurrency, it is important to remember that the success of the coin is directly related to their user base. If a currency does not have a dedicated user base, it will not gain the value that it needs. Additionally, when looking at these bases, you have to consider if they are increasing, decreasing or stagnating.
The fact that there are many quality alternatives leaves Litecoin fighting an uphill battle in terms of their user base and adoption rate. The Litecoin Foundation has listed around 200 merchants who accept this coin as payment. This does not mean that the user base for this coin is stagnant, but the community will have to clearly state and reinforce why people should use this coin instead of other higher profile ones.
The Transaction Efficiency
Transaction efficiency is something that all cryptocurrencies need to look at and sustain if they want to survive. This efficiency will enable users to spend the digital currency in a timely manner with low fees.
When you take a look at Litecoin and Ethereum in terms of this, you might assume that Litecoin is beating Ethereum. However, when you look below the surface, you will see that there is a bit more to this. Per second, Ethereum is completing 20 times the number of transactions as Litecoin. This means that the efficiency offered by Litecoin is not due to the structure of the coin and is more about the low transaction volumes.
When looking at this efficiency, you will also have to consider how the coins are going to scale their networks. As more people adopt the coins, the networks will become congested and this can lead to slow transaction times. Litecoin sees scaling as a solution instead of a problem and the creator has stated that Litecoin can scale as a method of improving Bitcoin.
Ethereum is aware of the congestion issue it currently faces and there have been a number of projects put in place to ease this. The issue of scaling is more pressing for Ethereum because of the user base increase.