MN504 Networked Application Management: Litecoin and Bitcoin Cash

This report provides a detailed analysis of Litecoin and Bitcoin Cash, two prominent cryptocurrencies. It begins with a literature review of Litecoin, exploring its architecture, features such as blockchain and mining, and challenges like security and scalability. The report then discusses the applications of Bitcoin Cash, including peer-to-peer transactions and mining, highlighting its approach to preventing replay attacks. A comparative analysis between Litecoin and Bitcoin Cash follows, focusing on differences in mining requirements, transaction times, coin limits, and algorithms. The report concludes by emphasizing Litecoin's faster transaction speeds and increased adoption, while also recommending enhanced security measures for both cryptocurrencies. This document is available on Desklib, a platform offering a range of study tools and solved assignments for students.

Cryptocurrency giants-Litecoin and Bitcoin
Cash

CRYPTOCURRENCY GIANTS-LITECOIN AND BITCOIN CASH
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Introduction
Litecoin is defined as a crypto currency and open source software project which is released under
the MIT license. The generation and transfer of coins are completely based on the cryptographic
technology which is not controlled by other authority [1]. The aim of this report is to understand the
concept litecoin with their architecture and challenges and different kinds of applications of bit coin
cash. A recent study observed that the use of litecoin has increased by 43% in the last five years and
it is one of the best platforms to change one type of currency into another. This report is
characterized into main three parts, for example, a literature review on Litecoin, applications of bit
coin cash, and comparison between litecoin and bitcoin cash.
Part 1: Litecoin
Bitcoin is one of the oldest crypto currencies that were developed in the year 2009 but recently lit
coin is one of the advanced versions of crypto currency that increases the market value by $3.4
billion. There are many researchers that provided their views on litecoin and bitcoin and they
observed that litecoin is more effective crypto currency as compared to the other. According to
Ruffing, Moreno-Sanchez and, Kate, (2014) litecoin is treated as a leading rival for bit coin cash and it
is very advanced technology that has potential to increase the transactional speed for small
businesses. The author described the concept of litecoin and they also obtained the opinions of
other experts by conducting a literature review. Term litecoin was founded in the year 2011 by
Charles lee and it was evaluated as silver against bitcoin cash. Heid, (2013) identified that most of
the business industries are using this approach because of their several advantages such as more
accurate, more efficient, high transactional speed and many more. There are many differences
between the bitcoin and litecoin which are described in this journal paper and the investigator uses
the secondary data approach to improve the effectiveness of the research. The main key difference
between these crypto currencies is that litecoin can be mined with the help of simple computer
devices but bitcoin required a high level computer system with the advanced processor. The
researcher also reduced the drawback and research gap of the previous investigation and observed
that the rate of litecoin is growing rapidly and many companies are using this technique to change
their currency. A recent study analysed that litecoin process is more secure as compare to other
crypto currency and it has the capability to increase the overall performance of the system [2].
Gkillas and, Katsiampa, (2018) argued that the current bitcoin protocols and networks are not able
to provide an incentive for nodes to broadcast transactions for which people can adopt the litecoin

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technology to resolve such kind of issues. The researcher also identified the challenges faced by
litecoin and network architecture of this crypto currency. The coin limit of bitcoin cash is below 21
million but liteocin is one of the advanced approaches that have 84 million litecoin that can be used
by both small and large business industries. Scrypt is very popular computer algorithm which is used
by the litecoin to control and manage the crypt currency and many experts provided their views on
this research topic but they did not identify the key factors associated with the litecoin cash. The
main difference between Gkillas and, Katsiampa, (2018) and Heid, (2013) is that Gkillas and,
Katsiampa, (2018) provided only theoretical information about litecoin but Heid, (2013) uses both
quantitative and qualitative approach to achieve the goals of the investigation. In future, they can
explain the security related issues faced by this crypt currency and mitigation techniques to enhance
the privacy of litecoin cash. This literature review described the concept of litecoin and related data
collected from online sources, journal papers, previous investigation and books. There are many
features of this technology, for example, block chain, mining, industry integration, and many more.
The architecture of litecoin involves block size limits, transaction delays, and greater payment utility
[3]. In which larger transaction volume connected with higher lit coin prices and a greater
infrastructure process is used which control and manage the transaction delays and limits? The
litecoin block chain has the ability to control and manage the high volume of transactions as
compared to other crypto currency. For identifying the mining process litecoin uses a computer
algorithm that is scrypt but bitcoin uses SHA-256 which is slow in speed rather than scrypt. A recent
study observed that there are many challenges faced by this technology, for example, tax issues,
data mining issues, security related issues, scalability, the potential for theft and more expensive
approach.
Part 2: applications of bitcoin cash
Bitcoin is a very common kind of crypto currency that can be used for mining purpose and it is a very
fast process, more reliable and very low cost technique. Peer to peer cash is one of the best
applications of this technique in which online money transferred from one consumer to another
without using any third party application [11]. With the help of this step, the issue of cyber-crimes
can be resolved because many third party applications are developed by the hackers by which data
of users can be lost. Coin base, coin market cap, block geeks and as a system of record all these are
very common applications of this technique and many consumers use this crypto currency for the
mining process. a replay attack occurs in the bitcoin cash when any person checks the other
replaying transaction and it is a very serious problem faced by many companies during data mining
[4]. Bitcoin cash resolved this issue by changing the check ever so slightly and they developed a

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special mark on the check which identified the ledgers. Replay protection is a kind of process which
is used by many companies and bitcoin cash to prevent replay attacks. Mining is an approach to
solve any kind of complex mathematical puzzles and miners are a most significant part of any crypto
currency that has the potential to mark the transaction as legitimate [9]. They are also responsible to
put new tokens into circulations and bitcoin cash uses SHA-250 algorithm to attract miners by
providing rewards and offers. With the help of this process, miners can easily send and receive the
money from one person to another in very less time. To start mining bitcoin cash people will require.
For security purpose, people can select a wallet which stores their personal data files or information.
A mining pool is a group of bitcoin cash miners which combine their computing power in order to
enhance their chance to solve the puzzle [8].
Part 3: Compare Litecoin and Bitcoin Cash
There are many differences between the bitcoin and litecoin crypto currency for example, for mining
bitcoin required very high computer processor, fast computer system but litecoin needs only s
simple computer system to operate their operations. The transaction time of litecoin processor is
around 2.5 minutes but bitcoin required about 10 minutes to complete one transaction. The coin
limit of bitcoin is 21 million as compared to litecoin due to which many consumers use the litecoin
process [7]. It also uses Scrypt algorithm but bitocin uses SHA-256 which take more time to process
data or information and bitcoin provide around 50 BTC as an initial reward but litecoin provide 50
LTC. The current block reward of lietcoin is 50 LTC as compare to bitcoin it is very due to which many
miners attract towards the litecoin [6]. Bitcoin developed by satoshi nakamoto and litecoin was
produced by Charles lee in the year 2011 and market of this crypto currency is around
$540,274,528.26 which is very high rather than bitcoin cash. It is observed that miners utilize their
power to solve any kind of cryptographic puzzles for which they required an approach to mine blocks
and drain out the complete bitcoin supply [5].
Conclusion
Bitcoin is the very oldest crypto currency which takes around 10 minutes in a single transaction
which creates uncertainty in work for which in the year 2011 a new approach was developed that is
litecoin. It has the potential to increase the speed of transaction and rate of litecoin has increased by
23% between 2015 and 2017. This report described the importance of litecoin and bitcoin cash and
architecture of litecoin with their challenges. There are many key differences between litecoin and
bitcoin which are evaluated in this report and readers can enhance their skills in the sector of crypto
currency. The issue of secyrity can be enhanced by adopting advanced security tools like firewall,

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encryption, robust technology, cryptography and many more. Therefore, people can adopt the
litecoin technique due to their benefits like more efficient, high transaction speed, reduced security
issues and so on.

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References
[1]. T., Ruffing, P. Moreno-Sanchez and, A., Kate, “CoinShuffle: Practical decentralized coin
mixing for Bitcoin.” In European Symposium on Research in Computer Security, vol. 12, no. 2,
2014, pp. 345-364.
[2]. A., Heid, “Analysis of the Cryptocurrency Marketplace.” Retrieved February, vol. 15, no. 2,
2013, p.2014.
[3]. K. Gkillas and, P., Katsiampa, “An application of extreme value theory to
cryptocurrencies.” Economics Letters, vol. 164, no. 2, 2018 pp.109-111.
[4]. S., Ahamad, M. Nair and, B., Varghese, “A survey on crypto currencies.” In 4th International
Conference on Advances in Computer Science, AETACS, vol. 6, no. 2, 2013, pp. 42-48.
[5]. H., Elendner, S., Trimborn, B. Ong and, T.M., Lee, “The Cross-Section of Crypto-Currencies as
Financial Assets: Investing in Crypto-Currencies Beyond Bitcoin.” In Handbook of Blockchain,
Digital Finance, and Inclusion, vol. 14, no. 5, 2018, pp. 145-173.
[6]. J., Bartos, “Does Bitcoin follow the hypothesis of efficient market?.” International Journal of
Economic Sciences, vol. 4, no. 2, 2015, pp.10-23.
[7]. P., Franco, Understanding Bitcoin: Cryptography, engineering and economics. John Wiley &
Sons, 2014.
[8]. L., Kristoufek, “BitCoin meets Google Trends and Wikipedia: Quantifying the relationship
between phenomena of the Internet era.” Scientific reports, vol. 3, no. 3, 2013, p.3415.
[9]. G.P., Dwyer, “The economics of Bitcoin and similar private digital currencies.” Journal of
Financial Stability, vol. 17, no. 3, 2015, pp.81-91.
[10]. P., Ciaian, M. Rajcaniova and, D.A., Kancs, “The economics of BitCoin price
formation.” Applied Economics, vol. 48, no. 19, 2016, pp.1799-1815.
[11]. S., Bayern, “Dynamic common law and technological change: the classification of
Bitcoin.” Wash. & Lee L. Rev. Online, vol. 71, no. 6, 2014, p.22.

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