Litecoin is a peer-to-peer cryptocurrency and an open-source software project released through Github's open-source client as early as October 7, 2011, under the MIT/X11 license. Inspired by Bitcoin, Litecoin shares the same underlying technology and operates based on an open-source cryptographic protocol, free from the control of any central authority.
Litecoin utilizes the Scrypt encryption algorithm, initially proposed by Colin Percival, in its proof-of-work algorithm. Before the emergence of ASIC mining machines, Litecoin mining was relatively easier on regular computers compared to Bitcoin. Additionally, Litecoin's block rewards are halved every 4 years. According to data, the next Litecoin halving is expected to occur at block height 2,520,000, reducing the block reward from 12.5 LTC to 6.25 LTC.
In the previous two halving events, Litecoin's halving mechanism, which reduces inflation and increases scarcity, has resulted in price increases, attracting the attention of numerous investors. As the Litecoin halving date approaches, the number of active addresses and new addresses reached a historical high on May 10, with 832,000 and 691,000, respectively. However, it's worth noting that Litecoin has only experienced a 62.90% increase in the past six months, even lower than Bitcoin's 64.85% during the same period.
Compared to the previous two events, this halving event has been largely overlooked by the market. The industry has seen a constant stream of new concepts and technologies that have captured the majority of investors' attention. Litecoin needs more innovation, and the new narrative driven by the BRC20 ecosystem can become a challenging opportunity for the Litecoin ecosystem.
LTC20, as a protocol imitating BRC20, will also be influenced by the popularity and price of BRC20. Combined with the halving narrative of Litecoin, LTC20 will attract more attention. Furthermore, Litecoin offers faster transaction speeds and lower transaction costs compared to Bitcoin, making LTC20 transactions faster, cheaper, and more investor-friendly. Although the current volume of LTC20 is relatively small, with only a few over-the-counter trades, it still holds significant development potential compared to BRC20.
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