Realising the major differences between Bitcoin, Ethereum, and Litecoin.

Introduction

Why were the cryptocurrencies needed in the first place itself? where is the Fiat currency not fulfilling the requirements of the users? Of course, there were, but due to some drawbacks and bottlenecks related to the Fiat currencies, a better version was needed hence cryptocurrencies came into the picture. A number of different cryptocurrencies existed before Bitcoin also, but were not that popular enough due to less security, but with Bitcoin came the Blockchain Technology which provided unimaginable amounts of security to Bitcoin through decentralization. But as they say that there is no limit for man’s greed, some of the drawbacks in Bitcoin open up opportunities for the development of newer cryptocurrencies. Hence other prominent cryptocurrencies where developed, some of the most popular on being Bitcoin Cash, Ethereum, Ripple, Stellar, Litecoin, Dash, etc. Let us see Bitcoin vs Ethereum vs Litecoin.

Bitcoin vs Ethereum vs Litecoin

Bitcoin was originally developed as a store of value along with the Distributed Ledger Technology and is at number one position according to market capitalization. Ethereum was originally developed in order to provide a standard template which could be used by any developer for the creation of decentralized applications which could be run on Ethereum network. Litecoin was basically a Bitcoin fork which was initiated in order to increase the overall efficiency of Bitcoin. It is to be well noted that Litecoin and Bitcoin stand on the same side and serve as a store a value but Ethereum is a bit different which facilities in the creation of decentralized applications.

Scalability: Bitcoin vs Ethereum vs Litecoin

In terms of transactional speed and scalability, Litecoin seems to take an upper hand, due to its increased rate of transactional confirmation. Both Bitcoin and Ethereum have been experienced network clogging due to high traffic, whereas Litecoin seems to handle scalability gracefully.

Consensus mechanism: Bitcoin vs Ethereum vs Litecoin

Bitcoin and Litecoin currencies need to be mined, but in the case of Ethereum, all the cryptocurrency is already pre-mined. Bitcoin uses the Proof of Work Consensus mechanism, in order to validate transactions, whereas Litecoin uses Scrypt Algorithm as its Consensus protocol to do the same. Ethereum beholds modified version of Satoshi Nakamoto’s Consensus through transaction based-state transitions.

Developers and popularity: Bitcoin vs Ethereum vs Litecoin

The developers of Bitcoin, Ethereum and Litecoin are Satoshi Nakamoto, Vitalik Buterin, and Charlie Lee respectively. Bitcoin has gained the most popularity reaching every nook and corner of the world, whereas Ethereum is the second most popular one, for its ability for the creation of decentralized applications based on smart contracts but Litecoin is not that extensively used by the masses. However, none of the cryptocurrency is regulated by the government and all are subjected to market risks. The people with a strong economic background can enter into the cryptocurrency market without any hesitation. A Turing complete decentralized Ethereum Virtual Machine was developed by the Ethereum community.

Market conditions: Bitcoin vs Ethereum vs Litecoin

At the time of this writing, the price was of Bitcoin is hovering around was oven around $7400, ethereum around $460 and litecoin around $85. All the three cryptocurrency coins are equally potent in order to thrive in this competitive market. However, Ethereum has been gaining the spotlight from the past few years, due to its amazing usability and robustness. Whereas Litecoin is well known for its speed and scalability. Bitcoin is the all-time popular as it dominates the whole Crypto market.

When it comes to following the original decentralized paradigm proposed by Satoshi Nakamoto, no cryptocurrency coin seems to be surpassing Bitcoin as the kind completely designs class with its founders also being anonymous. However, rumors suggest that Satoshi Nakamoto is revealing himself by writing an autobiography. After Bitcoin comes Ethereum on popularity among the masses due to the integrated environment it provides for the creation of Dapps.

Closing remarks

The cryptocurrencies these days are not been used as currency is but rather than as an investment asset, as the field is still in its nascent version. In future, one would experience a widespread adoption of cryptocurrencies in its literal meaning.