Litecoin's Architecture, Features, Challenges and Bitcoin Cash

This report provides a detailed analysis of Litecoin, a peer-to-peer cryptocurrency, covering its architecture, features, and challenges. It explores Litecoin's architecture as a fork of Bitcoin, highlighting differences in block generation time, coin limits, and hashing algorithms. Key features such as its blockchain geared for high-value transactions, Scrypt algorithm for mining, and industry integration are discussed. The report also addresses challenges like volatility, ease of use, widespread acceptance, theft potential, and scalability. Furthermore, it examines Litecoin's role in preventing replay attacks and attracting miners, and contrasts Litecoin with Bitcoin in terms of transaction speed and algorithm usage. The report concludes that Litecoin serves as a faster, more efficient alternative to Bitcoin, suitable for smaller transactions, and anticipates further convergence between the two cryptocurrencies as mass adoption increases. Desklib provides this and many other solved assignments for students.

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Introduction:
Litecoin or LTC is the peer-to-peer cryptocurrency which is also considered to be an
open-source software project which was released under the MIT/X11 License. Transferring
and creating the Litecoins is dependent on the open source cryptographic protocol and this is
not by any of the central authority. Litecoin was considered to be a spinoff of the Bitcoin or
the altocoin and the usage of this started in the month of October, 2011. Technically the
Litecoin can be considered to be almost identical to Bitcoin [1]. This is a report which would
be discussing about the architecture, feature and challenges related to the usage of Lite coin.
Followed by this the report would be analyzing and discussing about the applications which
are supported by bitcoin cash in two different domains that is Prevention of Reply Attacks
and Attract miners. After this the basic differences between Lite coin and Bitcoins have been
discussed and analyzed.
Part 1: Different Aspects of Litecoin
1. Architecture: The Litecoin network went live in the year of 2011 on 13th October and
this is a fork of the Bitcoin Core client and the primary difference between this two is that
the Litecoin is generally characterized with a decreased time of block generation along
with a maximum number of coins which has increased. Besides this the hashing algorithm
is also different from that of the bitcoin and is assisted by a GUI which is slightly
modified [2]. The Litecoin is associated with the using the Scrypt algorithm along with
FPGA and ASCI devices which are created for the purpose of mining the Litecoin is seen
to be more complicated.
2. Features: Litecoin is an Open Source software, and besides this it is also open to any
kind of verification which are independent of the binaries as well as their corresponding
source codes. Litecoin also tends to seek for the implementation of the technological

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advances which are associated with allowing then in the maintenance of its position as a
leading cryptocurrency. Most important features have been listed below:
 Blockchain: Litecoin Blockchain is generally geared up so as to tackle the different
high value transactions when they are compared with the Bitcoin. Frequent
implementation of the block generation, along with lightening and Segregated
Witness or SegWit, it is possible for the Litecoin network to provide support to the
high volume transactions without any need of modification of the software in the
future [2]. This in turn is associated with making the Litecoin more efficient for being
used by the merchants and customers who would be benefitting as the confirmation
time is faster and the fees is also low
 Mining: Litecoin is associated with the usage of the algorithm known as the Scrypt
which is associated with the determination of the mining process for new coins.
Besides this Scrypt is also associated with allowing the parallel processing’s at higher
degree which can be accessed more easily by the miners who are new than the
traditional algorithm. Usage of the Scrypt is also associated with helping in the
facilitation of the mining process of Litecoins without the usage of the ASIC-based
mining that are required for the purpose of mining the coins by making use of the
SHA-256 algorithm.
 Industry integration: Litecoins are generally considered to be a fork of the Bitcoin and
due to this reason it is seen that both of this currencies are associated with the sharing
of the same characteristics [3].
3. Challenges: some of the major challenges which are faced by the Bitcoin technology
have been listed below:
 Volatility: The Volatility of the Litecoins are extremely high and this volatility is not
slowing down at all.

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 Ease of use: Litecoins are easy to buy sell and use, however this isn’t that much user
friendly which is responsible for discouraging the adaptation of this by the
mainstream.
 Widespread acceptance: the acceptance of the digital currency isn’t that close to be
accepted on a wide basis.
 Potential for theft: There are security measures which exists which makes the stealing
of Litecoins almost virtually impossible. However, it is possible to take advantage of
this if some complex knowledge is available regarding the working of the Litecoins
and this might often require significant more amount of effort from the user.
 Scalability: Litecoins are associated with facing a serious amount of scalability
problems. The major reason is the underlying technology behind the Litecoins that is
the blockchain which limits the amount of information that is contained in each block.
Part 2:
Prevention of replay attacks by Bitcoins:
Replay attack is an associated with presenting a problem and this mainly happens if a
user is associated with spending upon one ledge then someone can easily copy the same
check which would be consisting of the user’s signature and this would be presented for
inclusion on the other ledger [4]. For this reason, it is possible to spend more money upon
other ledger as the signature of the user is valid on both the ledgers. It is obvious that when
someone is sending money as well as the actual amount needs to be exactly same, however
this is still associated with presenting certain problems. Bitcoin cash is something which has
helped in solving this problem and this has been done making changes in the checks ever so
slightly. Bitcoins are associated with making a special mark upon the checks that are capable

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of identifying the checks which was for the BCH ledger and not for the other ledger. And this
special protection is known as replay protection as this is associated with preventing the
replay attacks.
Attraction of the Miners by making use of Bitcoin cash:
The miners are generally attracted by the bitcoin cash as the mining of the bitcoin
cash is associated with yielding safe as well as secure resources for the world of
cryptocurrency. Thus this is initially responsible for satisfying the fundamental commitment
which the Bitcoin Blcokchain network had made at the initial stage which includes the of the
peer-to-peer digital currency [5]. The users and traders are usually granted with a
transactional fee along with positive confirmations. The future prospect might seem to be
bright enough consisting of ultimate expansion, innovations which are permission less,
development in a decentralized way and global adaptation. The miners are also being
attracted because of another period of low difficulty and the market price which is reasonably
high.
Part 3: Difference between Litecoin and Bitcoin:
Litecoin and Bitcoin are generally considered to be a complimentary of one another
and Litecoin generally acts as a steam ahead regarding the implementation of the changes and
upgrades which are capable of bringing benefits to the Bitcoin network.
Litecoin is seen to be focused upon being faster and more efficient than the Bitcoins
and has a deliberate aim of being accepted by the different merchants and vendors. Besides
this the implementation of frequent block generation Litecoin is also associated with the
usage of the Lightening network and Segregated witness which guarantees the fact that the
users would be capable of depending upon the network [6]. This networks are having the
capability of handling transactions of high volume at a speed which is high and in a cost

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which is low. Recently the Litecoin has also been used for the purpose of performing a cross
chain atomic swap which is associated with allowing the direct swapping of the
cryptocurrencies. This is done by usage of smart contracts and besides this there is no
requirement of any third party like an exchange.
These are the upgrades that are associated with providing the Litecoin the Upper hand
with regards to the overall efficiency, but it is totally inevitable that all these features would
eventually be incorporated by the blockchain of Bitcoin as well. Some of the other ways in
which the Litecoin is different from the Bitcoin are listed below:
 The Litecoin Network has an aim of of processes a block in each and every 2.5 minutes
which in case of Bitcoin is around 10 minutes [7]. Developers have been associated with
claiming the fact that this would be allowing the Litecoin to have faster transaction
confirmation.
 Litecoin is associated with the usage of the Scrypt in its proof-of-work algorithm. This is
a memory-hard function which is sequential and requires asymptotically more amount of
memory than the algorithm.
Conclusion:
Bitcoin is seen to be a superior store of value and besides this the Bitcoin network is
not capable of exceeding the amount of 21 million coins. Whereas in case of Litecoin it is
capable of accommodating an amount of about 84 million coins. Besides this lower prices of
the Litecoin is associated with making it suitable for purchasing goods of lower price along
with services. This happens as the cryptocurrencies edge closer to mass adaptation which
should be responsible for helping the Litecoin to close the gap on its older brother that is the
bitcoin.

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References:
[1.]Stevenson, J., Getting started with Litecoins (after Bitcoin). John Stevenson, 2013.
[2.]Reed, J., Litecoin: An Introduction to Litecoin Cryptocurrency and Litecoin Mining,
2017.
[3.]Nair, J. and Motwani, A., Crypto Currency: Bubble or Boom. International Journal, 6(1),
2018.
[4.]Gibbs, T. and Yordchim, S., Thai Perception on Litecoin Value. World Academy of
Science, Engineering and Technology, International Journal of Social, Behavioral,
Educational, Economic, Business and Industrial Engineering, 8(8), pp.2626-2628, 2014.
[5.]Uwajeh, A.N., Bitcoin and Digital Currency for Beginners: The Basic Little Guide. Alex
Nkenchor Uwajeh, 2015.
[6.]Bornholdt, S. and Sneppen, K., Do Bitcoins make the world go round? On the dynamics
of competing crypto-currencies. arXiv preprint arXiv:1403.6378, 2014.
[7.]Ayed, A.B. and Belhajji, M.B., The Blockchain Technology: Applications and
Threats. International Journal of Hyperconnectivity and the Internet of Things
(IJHIoT), 1(2), pp.1-11, 2017.