Over time, cryptocurrency has been prevailing as a digital asset. It is introduced to work as a medium of exchange in such a way that the coin is stored in a computerized database by using cryptographic systems. It secures transaction records, controls the creation of additional coins, and verification of coin ownership transactions. It doesn’t require physical form but uses digital currency and a central banking system for financing purposes.
In 2009, Bitcoin was introduced as being the first decentralized cryptocurrency. Since then, many cryptocurrencies have come into the limelight, such as Litecoin, Namecoin, Peercoin, Dogecoin, Ripple, Stellar, NEO, Cardano, and you name it.
Litecoin vs Cardano
The main difference between Litecoin and Cardano is that Litecoin is a peer-to-peer aka P2P network, while the latter term, Cardano, is a blockchain system. Having that said, P2P is a decentralized concept connecting peers, while blockchain is a decentralized ledger tracking digital assets on a P2P network.
Litecoin is a P2P cryptocurrency and open-source system by MIT/X11 license. It was started in October 2011 on GitHub by Charlie Lee. For the first time, it went live on 13th October 2011 with its proof-of-work algorithm. Following that, a few individuals and institutions use Litecoin to purchase or transfer coins from one account to another with the absence of payment processing services.
On the other hand, Cardona is a public blockchain platform, an open-source and decentralized system. It can facilitate P2P transactions with its internal cryptocurrency named Ada. It was founded in 2015 by Charles Hockinson, who is also the former co-founder of the cryptocurrency Ethereum. It was made to function in 2017 with its proof-of-stake protocol. It creates a block and validates transactions occurring on its blockchain.
Comparison Table Between Litecoin and Cardano
| Parameters of Comparison | Litecoin | Cardano |
| Meaning | It is a peer-to-peer cryptocurrency, where there is no need for any intermediaries or central server. | It is a public blockchain cryptocurrency, which involves a group of academics and developers for peer-reviewed research. |
| History | Charlie Lee is an Engineering Director who created Litecoin on GitHub through an open-source client on October 7th 2011. Later in 2013, the Litecoin industry skipped and enlisted in the list of top 5 cryptocurrencies. | Charles Hoskinson became the founder of Cardano on 27th September 2017. He covets to build a for-profit entity; therefore became the developer of three major organisations in 2021. |
| Function | Litecoin performs a decentralised payment mode which is Government or central-free. The sole activity of Litecoin is the transfer of funds directly between individuals and business. Litecoin is a blockchain that has grouped transactions of Litecoin. | Cardano is a blockchain platform where the exchange of digital currency ADA. On the other hand, Cardano developed a smart contract platform to ensure the stability and security of the cryptocurrency. |
| Hash Algorithm | Litecoin uses Scrypt in its proof-of-work algorithm as an online backup service because of the hefty amounts of memory. | Cardano uses Ouroboros in its proof-of-stake (PoS), which helps to undermine energy while processing blocking. Moreover, it decimates sluggish or massive computer progress resources. |
| Cryptocurrency Blockchain | Litecoin follows Proof of work (PoW) which helps minutiae information into an expatriate form with computational efforts. | Cardano follows Proof of Stake( PoS), which is used as the protocol of consensus mechanisms for blockchains. PoS does not consume much energy and eliminates unwanted data or records. |
What is Litecoin?
As earlier implicated, Litecoin is a type of cryptocurrency that has been operating since 2011. It was founded by Charlie Lee on the 7th of October 2011. Moreover, it operates as a peer-to-peer, open-source cryptocurrency to promote the purchase and transaction of cash without bank systems as intermediates.
In technical terms, it is similar to bitcoin but has a decreased block generation time, increased maximum number of coins, and a modified GUI comparable to that of Bitcoin. It uses the script in its proof-of-work protocol and was written in C++ programming language and available in Windows, OS X, Linux, and Android operating systems.
The popularly acceptable cryptocurrency is used for purchasing and transferring purposes. Furthermore, as of now, one Litecoin tantamounts to over 12,916 INR. Also, it is cost-effective and known for its up-tempo transaction service, four times faster than Bitcoin’s.
Its objective is to assist consumers in using Litecoin to do some purchases or transactions without any necessary involvement of banks, credit card companies, and other payment processing services.
What is Cardano?
On the contrary, Cardano uses a blockchain platform, an open-source and decentralized system for digital currency projects. It was developed by Charles Hockinson in 2015, following his abdication as a co-founder of Ethereum, which is also a cryptocurrency. It uses Ouroboros, a proof-of-stake protocol, which permits a person to mine or validate block transactions according to the coins they possess.
It has been active since 2017, was written in Haskell, and can be operated by cross-platform users. It uses design principles to meet up the issues faced by other cryptocurrencies, such as scalability, interoperability, and regulatory agreement. Moreover, it is the first hugest PoS cryptocurrency of 2021.
Cardona has Ada as the settlement layer, which encompasses track of transaction and computation purposes, eventually enabling smart contracts and applications to run on the platform.
Furthermore, in the market, Cardano is worth 114 INR. It opens blockchain technology among investors to handle real problems altogether. Cardona states to allow people to connect with protocols and technologies for transform, store, manage value, identification, and governance purposes.
Main Differences Between Litecoin and Cardano
- Litecoin is a peer-to-peer cryptocurrency operating system; on the other hand, Cardano is a public blockchain cryptocurrency system.
- Litecoin is a non-profit organisation, where Charles Lee built it on 7th October 2011, through an open-source client on GitHub. Albeit, Cardano is a for-profit organisation founded on 27th September 2017 by Charles Hoskinson.
- Litecoin uses scrypt in its proof-of-work(PoW) algorithm as an online backup service, whereas Cardano adopted Ouroboros in its proof-of-stake (PoS) algorithm.
- Litecoin follows Proof of work as its cryptocurrency blockchain because the subtle information can be depicted lucidly to the investor. On the contrary, Cardano uses Proof of Stake(PoS) as a cryptocurrency blockchain that helps to delete superfluous records.
- Litecoin is a decentralized payment mode, whereas Cardano is a smart contract blockchain platform where a group of academics and developers for peer-viewed research to study the market.
Conclusion
Litecoin is a non-profit organisation and a peer-to-peer function that involves no intermediaries or central government. Litecoin is similar to bitcoin but different in functioning the cryptocurrency. They use the Scrypt algorithm in its Proof of work which stores large memory.
Cardano is a for-profit organisation and a blockchain platform that involves middlemen in business. Cardano follows Ouroboros in its proof-of-stake, which helps to obliterate unnecessary data. Cardano developed a smart contract blockchain platform to supervise the stability and security of digital transaction.
References
- https://link.springer.com/chapter/10.1007/978-3-319-28151-3_8
- https://tradingstrategyguides.com/cardano-cryptocurrency-strategy/