The valuation of cryptocurrencies is based on many influencing factors, which results are important to traders. In comparing Ethereum vs. Litecoin, the supply and purpose of each coin must be considered. Mining strategies primarily impact transaction speed and fees and, in turn, affect the price movement of each coin. So, what’s the basis of comparison for Ethereum vs. Litecoin – how are they different? How do these two coins impact the space for crypto adoption?
What is Litecoin?
Litecoin aims to make a fairer, faster, and cheaper version of Bitcoin. It provides more secured transactions as well.
Litecoin is the ideal place to test the functionalities of new cryptocurrencies as it has a smaller cap of the market than Bitcoin. Due to this, we can say that the creative space of Litecoin provides us with some edge over Bitcoin. The fantastic point of Litecoin is its transaction speed. It provides us with easy everyday transactions; it’s like getting lunch every day.
What is Ethereum?
Ethereum is a blockchain platform created in 2015. Ether is the cryptocurrency of the platform. It is the most actively developed project in the industry since it is one of the new projects.
Mining blocks in Ethereum is easier, fairer, and faster as Ethereum is more rapid than Bitcoin. Uncapped cryptocurrency is the main point everyone has their eyes on.
The primary purpose of the Ethereum blockchain is to act as a decentralized application platform; it can also act as a medium of exchange, just like Bitcoin. The medium for contracts and building applications on the platform, Ethereum has native tokens, called “Ether tokens.” Users send Ether (ETH) tokens as the medium of contracts.
Major features of Litecoin
Litecoin is a capped cryptocurrency. There are 84 million Litecoins. Litecoin works on the Lightning Network. This network allows multiple transactions to be held off of the main blockchain.
The disadvantage Litecoin has is that it’s built using a Proof-Of-Work protocol, similar to Bitcoin. This means that to keep the blockchain running, a group of networking miners compute complex calculations. It uses a Scrypt hashing algorithm.
Miners are prevented from pooling together due to the effect of Litecoin’s Scrypt algorithm. Due to this, there is less chance of miners who mine and band together with a working environment. If the algorithm allows centralization in the network, experts agree that it could attain and achieve more.
A significant disadvantage is that miners get fees for each transaction. $0.05 is the transaction cost for a single Litecoin. It is a norm, though, but surely a drawback.
Major features of Ethereum
A great feature is that there is an uncapped supply limit for Ethereum. The maintaining members of Ethereum decided not to cap the supply since the Ethereum blockchain was a platform that was designed for services like decentralized applications.
The Ethereum platform’s primary purpose is to act as a decentralized and decentralized global computing platform. Information is also one of the materials stored in their smart contracts, including agreements or other rules. One more thing to highlight is that it facilitates monetary exchanges, and property transfers can also be held in this contract.
Currently, Ethereum uses a Proof-of-Work mining system. To replace validator miners, a Proof-of-Stake consensus was held, to which the network is considering to switch. You all might already know that the Proof-of-Work system is less efficient since Proof-of-work miners have to struggle more to achieve their goals to mine blocks. So a significant positive aspect here is that lesser resources and less energy are needed in Proof-of-Stake mining.
Mining Ethereum is already comparatively quick and easy. An average time would be around 15 seconds to mine a single block.
‘Gas’ is the name of the system which is used by Ethereum. This system is used instead of the transaction fees. The amount of computational effort required to execute transactions is called the unit ‘Gas’ measurement. An example would be the amount of gas needed to get from one place to another. A gas fee is to be paid to finish the transaction whenever a user sends these tokens.
Ethereum can be used as a transactional currency. Its main functionality isn’t really to store data of value since it’s uncapped. Instead, smartly designed layers of functionality are added through smart contracts.
Key differences between Litecoin and Ethereum
There are many factors to consider when comparing Litecoin with Ethereum, including:
There’s no stopping the supply limit for Ethereum, whereas 84 Million coins are estimated to be the supply limit for Litecoin.
Store-of-value or/and being used as a currency is the main functionality of Litecoin, whereas Ethereum can also be used to create smart contracts and transfer property.
Speed is a good factor for Ethereum’s blockchain since it’s even faster than Bitcoin, therefore faster mining of blocks. Ethereum may to transferring itself to proof-of-stake, whereas Litecoin is on the proof-of-work-mining path.
4. Transaction speed
The mining speed of Ethereum is fast; therefore, transaction speed is also much quicker than Litecoin. For smaller transactions, Ethereum is great!
5. Transaction fees
Litecoin charges a transaction fee for each transaction that gets put into a newly mined block, but Ethereum doesn’t have a transaction fee.
Litecoin price prediction for 2022
Due to its quick confirmation results and lower pay costs, Litecoin is the platform for worldwide business and consumers. Payments by credit cards or other methods produce more fees as compared to Litecoin’s processing fee. There’s even free integration here.
Litecoin’s uprising ratio might also increase as it is already high compared to the other newcomers. Experts of crypto have concluded the following reports.
This report tells us that the Litecoin price will keep a similar level as in 2021 ($129 on average), with the potential to grow to $137 by July and $144 in December. It could vary in the range of $50-$55. According to the report, Litecoin will keep increasing in 2022. Suggestions are that investing in the coin may be wise.
However, it is unclear that whether the market will experience a fast drop in 2021 or whether it will hold some good potentials. The uprising dynamic is also dark in Litecoin’s case. In January, the average transfer value is expected to be $200, and nonetheless, it may change to $260 in December. Litecoin will show only positive dynamics through the year, with a stable increase from January to May (average 11%). The report is pretty sure that the 200$ mark would be crossed by Litecoin in around May and would continue to rise.
Ethereum price prediction for 2022
It is predicted that in 2022, the minimum cost of Ethereum would be massively increased, from $2500 to $14,000. For quite some time now, we can see a common fact that Ethereum hasn’t taken any external fall and is showing gradual uprising growth. But, all the experts, in their reports, have said that Ethereum holds a favorable rate.
According to their reports, the year will begin with a minimum of $2,451.577, even lower than now. Ethereum fans won’t get any surprises this year because there’s no sudden rising but just steady growth. In December 2022, a predicted maximum amount is around $4000.
Wallet Investor calms anyone worried about Ethereum in claiming that 2022 will begin with the minimum price of $3,443.540. The average price will be $4,850 in July. December 2022 will freshen up Ethereum fans’ mood with a maximum price of $6,400.
Ethereum vs. Litecoin differ in many aspects. The designation of Ethereum is based on types of info exchange and building of applications, whereas Litecoin is directed more towards transactions, mining, and purchases. This is reflected in the Ethereum vs. Litecoin caps: Litecoin is capped at 84 million coins, while Ethereum is an uncapped cryptocurrency platform.
The Ethereum platform of blockchains is faster, leading to shorter transaction times and lower mining process costs.
Mining validators get lower block rewards in the case of Ethereum to keep the supply chain in check. On the other hand, Litcoin provides a good user experience by giving reasonable transaction fees.
Both Bitcoin, Litecoin, and Ethereum are growing at an impressive rate; we’ve shown you their capability. Now it’s up to you which coin to invest in, whether to buy Litecoin or Ethereum.
How ready are these cryptocurrencies for mass adoption? China seems to be on board as it plans to test a national cryptocurrency. But how viable is such widespread adoption?
The benefits of cryptocurrencies are nothing short of spectacular. With mass adoption, there would be a decrease in the cost of transactions, making financial services more accessible, which would be a big help to the millions of people in the country who are unconnected to conventional banks.
Another benefit from Ethereum, being supported by blockchain, is the potential to decrease the rates of fraud and counterfeiting, which would be of service to the government’s attempts to reduce corruption — a key concern. A third benefit is that easy currency transactions would increase the rate of international transactions, allowing for more trades and faster economic growth.
For Ethereum, it also helps that its first intended market has always been business. As an enterprise blockchain, Ethereum has a sizable base of large corporations that use it for transactions. There’s also the Ethereum Enterprise Alliance (EEA), which links up Fortune 500 companies — like Microsoft, JP Morgan, Credit Suisse, and Intel — with Ethereum experts.
Just the fact that people are talking about moons again is making me feel good. But back on Earth, there is also a lot to like about the fundamentals of Ethereum. Even though the air has been sucked out of the decentralized finance bubble at least for a bit, the need for Ether has not subsided. While interest in investing in DeFi projects has taken a hit, Uniswap and other Crypto Exchanges like BuyUcoin still remain insanely popular.