Alternative currencies have blossomed over the last decade, as a goal to simplify the digital transfer of funds. People linked together by technology desire a mechanism to exchange money without the restrictions placed by banking and financial institutions. Cryptocurrencies, or alternative currencies, are the digital answer. Litecoin is a person-to-person cryptocurrency similar to Bitcoin.
Cryptocurrencies like Litecoin are a modern and digital way of producing a monetary exchange system. It offers people a way to secure remuneration for a transaction without the conventional need for cash, checks, or a credit/debit transfer using a bank. Exchanged almost exclusively over the Internet, Cryptocurrencies present a unique challenge to the standard currencies and typical methods of payment.
What Is Litecoin?
Litecoin is one of the Cryptocurrencies that has taken the world by storm, primarily because of the speed aspect of the software. It operates as open source software, with the project released in 2011 under the MIT/X11 license. The release date in early October was on the GitHub open source client platform by a former Google employee, Charles Lee.
Lee calculated in a slight modification of the hashing algorithm, which made his cryptocurrency idea different from Bitcoin. The most evident difference was a dramatic decrease in the block generation time. In simpler terms, it meant that Litecoin increased the volume of coin exchange between users.
Litecoin Explodes on the Scene
Because of this simple adjustment to the algorithm, Lee was able to speed up the coin exchange rate so much that in November 2013, the currency exploded onto the cryptocurrency market. In one 24-hour period, it made a jump in the value of 100%. By the end of that month, it attained the $1 billion established market cap and ended 2016 with a market capital value of US $177,400,000.
Litecoin Market Capitalization Cap Value
While the market capitalization value of Litecoin is still a great deal less than Bitcoin, it does not trouble the developers in the least. The original idea was to reach a worldwide presence. People would identify this presence as the ‘silver’ of cryptocurrency if Bitcoin was considered the ‘gold.’ The Litecoin price is as stable as any of the digital currency options, with most price indicators setting the Litecoin price as one of the more viable options in the industry.
How to Mine Litecoin
Like in the case of all the other denominations of cryptocurrency, you can also mine Litecoin. Before a cryptocurrency prospector decides to venture into mining operations, it is good to understand the basics of the concept. The first need is substantial processor power, with computational efficiency.
What Is Cryptocurrency Mining?
One of the most intriguing aspects of cryptocurrency is the concept of mining. Mining is how new units of cryptocurrency are produced, but it is not as simple as just gearing in the software to a desktop computer. Currency mining is demanding on processor power, with computations that must be extraordinarily fast to be successful.
Experts recommend you to have specific mining hardware. However, you can accomplish the process of mining with a workhorse central processing unit (CPU) or by using a graphics processing unit (GPU). GPU systems are usually more successful as the CPU option; sort of like a high-powered gaming computer system.
Processing power verifies a series of transactions and is essentially reward with cryptocurrency for correctly solving a continuous series of mathematical equations. While high-powered CPUs and strong GPU systems can mine successfully, to generate consistently strong profitability miners are going to want to venture into beefed-up processor options.
Cryptocurrencies utilize one of two hashing algorithms; SHA-256 or script to provide the proof of work necessary to generate coinage Litecoin uses a script-hashing algorithm. To maintain the speed necessary to mine Litecoin productively, some miners will incorporate motherboards that contain multiple graphics cards. This is one trick to speeding up the mining process.
Mining digital coin is very hard on computer processors. Therefore, this will significantly reduce the lifespan of many of the electronic elements. The amount of heat created can be intense. Therefore, one should take additional safeguards for cooling.
Specialists recommend you to use external fans to better circulate the air around the computer. Moreover, to avoid being shut down for an extended period, most cryptocurrency miners keep at least one replacement component handy for a fast change.
Tips for Successful Litecoin Mining
First thing, is to create a Litecoin wallet to store the currency. One option that works well is the default wallet app for Litecoin. For a better understanding of wallets and mining strategy, miners can visit forums to discuss options. There are forums attached to specific coin mining endeavors, plus more generalized forums that discuss different aspects of cryptocurrency.
Solo, or Group Mining – Cryptocurrency miners can also choose to mine alone or join in a miner crowd. The concept is akin to a group lottery situation. Solo miners reap all the profits but must have extraordinarily high processor capacity to be successful alone.
Crowd mining projects combine multiple processor speeds together and then split the rewards. Since the need for power is so important, often times the pooling of resources produces such a boost in speed that the actual profitability goes beyond what a miner could attempt to accomplish going solo.
Unless miners ramp up the motherboard with additional graphics cards, a CPU timer is essential. It’s referred to as a CPU miner and is the easiest way to start if you are a beginner. If you use the command line on the computer, you will be able to install a program called SourceForge.
It works with either Windows 32 or 64 bit operating systems. Once you download and zip the file, you can extract it from any spot on the hard drive. Most miners create a shortcut folder on their desktop for quick access. This feature allows miners to quickly access their mining operations.
GPU miners will download a program and perform a similar series of steps to add the file to their computer. The ports for GPU mining are more involved and require establishing a username and password. Moreover, miners will need to trace the URL to the mining server and create a worker ID and number. Individual GPU miners are best suited for individuals who wish to mine solo, but the process does require a much better understanding of computer concepts.
First, you need to decide which mining tool to use between GPU and CPU. Second, you must select and install the software. Eventually, blocks of statistical data will begin to scroll across the command line terminal. Miners will see two different types of data depending on which method they have chosen to mine their cryptocurrency.
The CPU miner will show all the process actively running, plus the blocks of computations that have been solved. A CPU system will also show the hashing speeds since it is so vital to the process. The platform will display information about the currency and the type of hardware. Moreover, they will include the counting of currency rewards. Savvy miners will work up spreadsheets to analyze time, speed and performance statistics for all periods that they are actively mining.
Cryptocurrencies are gradually becoming an intriguing option to make money, especially within the world of the knowledgeable computer wiz. Appreciating that the mining process takes a beefed-up system with backup hardware is critical. With everything lined up, aspiring Litecoin miners can produce a profit by following these simple suggestions.