Litecoin - Revision history

Taras: Redirected page to Scrypt proof of work

2015-01-10T05:05:39Z

← Older revision		Revision as of 05:05, 10 January 2015
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	~~{{altcoin}}~~		#redirect [[Scrypt proof of work]]

	~~== What is Litecoin? ==~~
	~~Litecoin is an alternative cryptocurrency based on Bitcoin. It differs from Bitcoin in that it targets a faster block rate (2.5 minutes) and uses scrypt for the primary hashing done in mining.~~

	~~While scrypt was claimed to be resistant to GPU-based mining early on, GPUs are currently the most efficient hardware with which to mine Litecoins.~~
	~~One of the aims of Litecoin was to provide a mining algorithm that did not compete with Bitcoin.~~

	In April 2014, Litecoin reached a market cap of $270 million and achieved a network strength above 100 gigahashes/second. This compares roughly to a network strength for Bitcoin of 100 terahashes/second.

	~~== Differences from Bitcoin ==~~

	~~==== Scrypt Proof of Work ====~~
	Litecoin uses scrypt as a proof-of-work scheme. Scrypt adds memory-intensive algorithms to reduce the efficiency of the kind of parallelization that GPUs offered in early Bitcoin mining. This led to Litecoin primarily being mined with CPUs at the beginning. CPU-based mining has been challenged by the appearance of more energy-efficient GPU-based mining around July/August of 2012 bringing a roughly ten-fold increase in network hashing strength. GPUs are currently the dominant Litecoin mining technology.

	Scrypt has been less widely used and analyzed than the SHA2 hashing algorithm used in Bitcoin, so there is some concern about possible weaknesses in its cryptographic scheme being discovered in the future.

	~~==== Faster Blocks ====~~
	~~The Litecoin blockchain differs from Bitcoin in that it generates blocks every 2.5 minutes on average (four times Bitcoin's rate).~~
	~~This means that merchants who accept transactions only 1 block deep get that confirmation quicker.~~
	~~However, it should be noted that more blocks are required to achieve the same amount of confirmation strength as Bitcoin (6 blocks of litecoin are not equivalent to 6 blocks of bitcoin).~~
	~~Unfortunately, this increases the number of hashes that are wasted in mining since miners will be working from the non-best block more of the time.~~

	~~==== 84 Million Litecoins ====~~
	Litecoin started with miners generating 50 coins per block as with Bitcoin, but to maintain Bitcoin's inflation rate chage schedule, the block reward gets halved every 840,000 blocks. As a result, the network is scheduled to produce a total of 84 million litecoins.

	~~==== Different Addresses ====~~

	~~Litecoin addresses start with L due to their version number. Otherwise, they are generated identically to Bitcoin addresses.~~

	~~==== (Slight) Premining ====~~
	~~Litecoin had two blocks premined, one more than the minimum single genesis block needed to start a block chain.~~

	~~==Criticism==~~
	~~==== Redundancy ====~~
	~~<!-- NOTE: scrypt is not a feature, since it is a flaw -->~~
	~~Besides a faster first confirmation, Litecoin does not provide any other features over what Bitcoin provides.~~
	~~Because of this lack of innovation, some believe Litecoin is unlikely to match or surpass Bitcoin's value or user-base.~~
	~~It remains to be seen if the use of a different mining algorithm and faster block times add sufficient value for Litecoin's long-term survival.~~

	~~==== Not Silver to Gold ====~~
	~~Some argue that Litecoin cannot make sense as "silver to bitcoin's gold", because Bitcoin itself is both gold and silver:~~
	~~While in the long-run, the BTC unit may be too valuable for everyday trade ("gold"), there are other, much smaller~~ [[~~units]] that can just as well serve the purpose of "silver" while being naturally/automatically "converted" to/from BTC.~~

	~~==== Vulnerability to mining monopoly ====~~

	Similarly to Bitcoin, Litecoin can be attacked by an entity that can match or exceed the hashrate of the network. Such a "51% attack" becomes more difficult to launch and maintain as the hash rate of the network grows. However, this argument posits that Litecoin is designed to be inefficient on all common computer components (both CPUs and GPUs) meaning that a malicious entity need only produce a small batch of specialized/custom hardware to overtake all the commodity mining systems combined.

	~~===== Memory bandwidth refutation =====~~
	~~Some attempt to refute this by arguing that scrypt is not designed to be inefficient, but is instead designed to be highly dependent on memory bandwidth.~~
	~~Since the high-speed cache RAM on modern processors already takes up most of the die space, no sizeable improvement could then be made by creating custom chips.~~
	~~If we accept this argument we then estimate the cost of attack utilizing GPUs that are avilable today.~~

	~~To do so we start with an estimated cost of hardware at $400 per megahashes per second and the October 2013 Litecoin network hashrate of 30 gigahashes per second.~~
	~~The total amount of equipment necessary to match and takeover the Litecoin network via 51% attack is then an estimated $12M USD (or about 45,000 AMD HD 7950s).~~

	~~==== Pump and Dump Scheme ====~~
	According to some, one or more of the aforementioned reasons imply that Litecoin has no future potential, and therefore effectively functions as a [http://www.investopedia.com/terms/p/pumpanddump.asp "pump and dump" scheme], rewarding those who get in sooner at the expense of those who adopt it just before it finally fails (and are left with nothing).

	Additionally, people often complain that the Litecoin community misrepresents it in other ways, such as portraying "faster block times" as if it makes transactions faster, and scrypt as if it is resistant to ASIC or FPGA hardware, in order to pretend Litecoin has more security or utility and inflate its value.

	It's important to note, generally these critics do not think that Litecoin/Blockchain currencies are pump and dump schemes "per se"; but rather that the existing network effect of Bitcoin, combined with the lack of meaningful differentiation between Litecoin and Bitcoin and Litecoin's adoption of a "designed to fail" proof-of-work ~~algorithm; that Litecoin is bound to fail in the end. Bitcoin does not suffer from these "flaws" and therefore does not fall under the "pump and dump" scheme, according to this argument.~~

	~~==External links==~~
	*[http://litecoin.org/ Litecoin website]
	*[http://forum.litecoin.net Litecoin forum]
	*[http://explorer.litecoin.net/ Litecoin block explorer]
	*[http://ltc.blockr.io/ Blockr.io Blockchain Explorer]
	*[http://www.ltc-charts.com/ Charts]
	*[http://litecoinscout.com/static/ Litecoin network graphs]
	*[https://github.com/litecoin-project/litecoin/wiki Litecoin wiki]
	*[https://www.litecoinglobal.com Litecoin Global Exchange (virtual stock exchange)]
	*[http://www.technologyreview.com/news/513661/bitcoin-isnt-the-only-cryptocurrency-in-town/ MIT Technology Review: Bitcoin Isn't the only Cryptocurrency in Town]
	*[http://ltc.blockr.io/documentation/api/ Litecoin Blockchain API]
	*[http://www.vnbitcoin.org/litecoincalculator.php Litecoin Mining Calculator]
	*[http://www.belgacoin.com Belgacoin]

	~~==See also==~~
	~~[[Cryptocoin]]~~

	~~[[Category:Alternative cryptocurrencies]]~~
	~~[[Category:Digital currencies~~]]

Luke-jr: Altcoins are off-topic

2014-06-08T04:15:36Z

Altcoins are off-topic

← Older revision		Revision as of 04:15, 8 June 2014
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			{{altcoin}}

	== What is Litecoin? ==		== What is Litecoin? ==
	Litecoin is an alternative cryptocurrency based on Bitcoin. It differs from Bitcoin in that it targets a faster block rate (2.5 minutes) and uses scrypt for the primary hashing done in mining.		Litecoin is an alternative cryptocurrency based on Bitcoin. It differs from Bitcoin in that it targets a faster block rate (2.5 minutes) and uses scrypt for the primary hashing done in mining.

Lapp0: How could value be inflated if you are implying it already has no value

2014-05-20T05:25:57Z

How could value be inflated if you are implying it already has no value

← Older revision		Revision as of 05:25, 20 May 2014
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	According to some, one or more of the aforementioned reasons imply that Litecoin has no future potential, and therefore effectively functions as a [http://www.investopedia.com/terms/p/pumpanddump.asp "pump and dump" scheme], rewarding those who get in sooner at the expense of those who adopt it just before it finally fails (and are left with nothing).		According to some, one or more of the aforementioned reasons imply that Litecoin has no future potential, and therefore effectively functions as a [http://www.investopedia.com/terms/p/pumpanddump.asp "pump and dump" scheme], rewarding those who get in sooner at the expense of those who adopt it just before it finally fails (and are left with nothing).

	Additionally, people often complain that the Litecoin community misrepresents it in other ways, such as portraying "faster block times" as if it makes transactions faster, and scrypt as if it is resistant to ASIC or FPGA hardware, in order to pretend Litecoin has ~~value~~ and inflate its value.		Additionally, people often complain that the Litecoin community misrepresents it in other ways, such as portraying "faster block times" as if it makes transactions faster, and scrypt as if it is resistant to ASIC or FPGA hardware, in order to pretend Litecoin has more security or utility and inflate its value.

	It's important to note, generally these critics do not think that Litecoin/Blockchain currencies are pump and dump schemes "per se"; but rather that the existing network effect of Bitcoin, combined with the lack of meaningful differentiation between Litecoin and Bitcoin and Litecoin's adoption of a "designed to fail" proof-of-work algorithm; that Litecoin is bound to fail in the end. Bitcoin does not suffer from these "flaws" and therefore does not fall under the "pump and dump" scheme, according to this argument.		It's important to note, generally these critics do not think that Litecoin/Blockchain currencies are pump and dump schemes "per se"; but rather that the existing network effect of Bitcoin, combined with the lack of meaningful differentiation between Litecoin and Bitcoin and Litecoin's adoption of a "designed to fail" proof-of-work algorithm; that Litecoin is bound to fail in the end. Bitcoin does not suffer from these "flaws" and therefore does not fall under the "pump and dump" scheme, according to this argument.

Bit79: /* External links */

2014-05-18T16:30:49Z

External links

← Older revision		Revision as of 16:30, 18 May 2014
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	*[http://ltc.blockr.io/documentation/api/ Litecoin Blockchain API]		*[http://ltc.blockr.io/documentation/api/ Litecoin Blockchain API]
	*[http://www.vnbitcoin.org/litecoincalculator.php Litecoin Mining Calculator]		*[http://www.vnbitcoin.org/litecoincalculator.php Litecoin Mining Calculator]
	*[http://www.belgacoin.com ~~European Litecoin Exchange~~]		*[http://www.belgacoin.com Belgacoin]

	==See also==		==See also==

Bit79: /* External links / Removed dead link ([http://www.crypto.st Crypto Street - Advanced Trading Exchange for Litecoins]) + added mine

2014-05-18T16:30:33Z

External links: Removed dead link (*[http://www.crypto.st Crypto Street - Advanced Trading Exchange for Litecoins]) + added mine

← Older revision		Revision as of 16:30, 18 May 2014
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	*[https://github.com/litecoin-project/litecoin/wiki Litecoin wiki]		*[https://github.com/litecoin-project/litecoin/wiki Litecoin wiki]
	*[https://www.litecoinglobal.com Litecoin Global Exchange (virtual stock exchange)]		*[https://www.litecoinglobal.com Litecoin Global Exchange (virtual stock exchange)]
	*[http://www.crypto.st Crypto Street - Advanced Trading Exchange for Litecoins]
	*[http://www.technologyreview.com/news/513661/bitcoin-isnt-the-only-cryptocurrency-in-town/ MIT Technology Review: Bitcoin Isn't the only Cryptocurrency in Town]		*[http://www.technologyreview.com/news/513661/bitcoin-isnt-the-only-cryptocurrency-in-town/ MIT Technology Review: Bitcoin Isn't the only Cryptocurrency in Town]
	*[http://ltc.blockr.io/documentation/api/ Litecoin Blockchain API]		*[http://ltc.blockr.io/documentation/api/ Litecoin Blockchain API]
	*[http://www.vnbitcoin.org/litecoincalculator.php Litecoin Mining Calculator]		*[http://www.vnbitcoin.org/litecoincalculator.php Litecoin Mining Calculator]
			*[http://www.belgacoin.com European Litecoin Exchange]

	==See also==		==See also==

Bitcoinomy: /* What is Litecoin? */ removing out of date information. updating specifics about market cap and network strength.

2014-04-28T22:52:32Z

What is Litecoin?: removing out of date information. updating specifics about market cap and network strength.

← Older revision		Revision as of 22:52, 28 April 2014
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	== What is Litecoin? ==		== What is Litecoin? ==
	Litecoin is an alternative cryptocurrency based on Bitcoin. It differs from Bitcoin in that it targets a faster block rate (2.5 minutes) and uses scrypt for the primary hashing done in mining~~. MtGox announced in April 2013 that they would add support for Litecoin trading, a plan that was delayed due to recent DDOS attacks~~.		Litecoin is an alternative cryptocurrency based on Bitcoin. It differs from Bitcoin in that it targets a faster block rate (2.5 minutes) and uses scrypt for the primary hashing done in mining.

	While scrypt was claimed to be resistant to GPU-based mining early on, GPUs are currently the most efficient hardware with which to mine Litecoins.		While scrypt was claimed to be resistant to GPU-based mining early on, GPUs are currently the most efficient hardware with which to mine Litecoins.
	One of the aims of Litecoin was to provide a mining algorithm that did not compete with Bitcoin.		One of the aims of Litecoin was to provide a mining algorithm that did not compete with Bitcoin.

	In April ~~2013~~, Litecoin reached a market cap of $70 million and achieved a network strength above 12 gigahashes/second. This compares roughly to a network strength for Bitcoin of 12 terahashes/second.		In April 2014, Litecoin reached a market cap of $270 million and achieved a network strength above 100 gigahashes/second. This compares roughly to a network strength for Bitcoin of 100 terahashes/second.

	== Differences from Bitcoin ==		== Differences from Bitcoin ==

Dth123 at 08:09, 25 March 2014

2014-03-25T08:09:27Z

← Older revision		Revision as of 08:09, 25 March 2014
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	*[http://www.technologyreview.com/news/513661/bitcoin-isnt-the-only-cryptocurrency-in-town/ MIT Technology Review: Bitcoin Isn't the only Cryptocurrency in Town]		*[http://www.technologyreview.com/news/513661/bitcoin-isnt-the-only-cryptocurrency-in-town/ MIT Technology Review: Bitcoin Isn't the only Cryptocurrency in Town]
	*[http://ltc.blockr.io/documentation/api/ Litecoin Blockchain API]		*[http://ltc.blockr.io/documentation/api/ Litecoin Blockchain API]
			*[http://www.vnbitcoin.org/litecoincalculator.php Litecoin Mining Calculator]

	==See also==		==See also==

Blockr: /* External links */

2014-03-11T12:18:50Z

External links

← Older revision		Revision as of 12:18, 11 March 2014
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	*[http://www.crypto.st Crypto Street - Advanced Trading Exchange for Litecoins]		*[http://www.crypto.st Crypto Street - Advanced Trading Exchange for Litecoins]
	*[http://www.technologyreview.com/news/513661/bitcoin-isnt-the-only-cryptocurrency-in-town/ MIT Technology Review: Bitcoin Isn't the only Cryptocurrency in Town]		*[http://www.technologyreview.com/news/513661/bitcoin-isnt-the-only-cryptocurrency-in-town/ MIT Technology Review: Bitcoin Isn't the only Cryptocurrency in Town]
			*[http://ltc.blockr.io/documentation/api/ Litecoin Blockchain API]

	==See also==		==See also==

Blockr: /* External links */

2014-03-11T12:07:12Z

External links

← Older revision		Revision as of 12:07, 11 March 2014
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	*[http://forum.litecoin.net Litecoin forum]		*[http://forum.litecoin.net Litecoin forum]
	*[http://explorer.litecoin.net/ Litecoin block explorer]		*[http://explorer.litecoin.net/ Litecoin block explorer]
			*[http://ltc.blockr.io/ Blockr.io Blockchain Explorer]
	*[http://www.ltc-charts.com/ Charts]		*[http://www.ltc-charts.com/ Charts]
	*[http://litecoinscout.com/static/ Litecoin network graphs]		*[http://litecoinscout.com/static/ Litecoin network graphs]

Weex: /* Memory bandwidth refutation */ Update attack cost

2013-10-21T06:07:35Z

Memory bandwidth refutation: Update attack cost

← Older revision		Revision as of 06:07, 21 October 2013
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	If we accept this argument we then estimate the cost of attack utilizing GPUs that are avilable today.		If we accept this argument we then estimate the cost of attack utilizing GPUs that are avilable today.

	To do so we start with an estimated cost of hardware at $~~600~~ per megahashes per second and the ~~March 14,~~ 2013 Litecoin network hashrate of ~~2,500 megahashes~~ per second.		To do so we start with an estimated cost of hardware at $400 per megahashes per second and the October 2013 Litecoin network hashrate of 30 gigahashes per second.
	The total amount of equipment necessary to match and takeover the Litecoin network via 51% attack is then an estimated $~~1.5M~~ USD (or about 5,000 AMD HD ~~5970s~~).		The total amount of equipment necessary to match and takeover the Litecoin network via 51% attack is then an estimated $12M USD (or about 45,000 AMD HD 7950s).
	~~There are tens of thousands of GPUs that are in the process of being made unprofitable for mining on the Bitcoin network ASICs.~~
	~~While these GPUs may be redeployed for Litecoin, a proportional and sustained rise of the Litecoin exchange rate would be required to support this additional GPU mining activity~~.

	==== Pump and Dump Scheme ====		==== Pump and Dump Scheme ====

Litecoin - Revision history

Taras: Redirected page to Scrypt proof of work

Luke-jr: Altcoins are off-topic

Lapp0: How could value be inflated if you are implying it already has no value

Bit79: /* External links */

Bit79: /* External links */ Removed dead link (*[http://www.crypto.st Crypto Street - Advanced Trading Exchange for Litecoins]) + added mine

Bitcoinomy: /* What is Litecoin? */ removing out of date information. updating specifics about market cap and network strength.

Dth123 at 08:09, 25 March 2014

Blockr: /* External links */

Blockr: /* External links */

Weex: /* Memory bandwidth refutation */ Update attack cost

Bit79: /* External links / Removed dead link ([http://www.crypto.st Crypto Street - Advanced Trading Exchange for Litecoins]) + added mine