This comprehensive guide will equip you with all the Litecoin basics, exploring its history and defining features, such as its use of the scrypt algorithm and Litecoin halving’s.
What is Litecoin in NZ?
Litecoin is a popular cryptocurrency that is widely used in NZ and around the world.
It was created in 2011 by Charlie Lee, who was a former engineer at Google, with the aim of improving Bitcoin’s shortcomings, particularly in terms of transaction speed and cost.
Litecoin operates on a decentralized blockchain network that is secured by cryptography. It uses a proof-of-work (POW) consensus algorithm, similar to Bitcoin, which means that transactions are verified and added to the blockchain by a network of miners.
History of Litecoin
Litecoin was launched on October 7th 2011 by Charlie Lee, a former Google engineer.
Litecoin faced challenges such as low adoption and security vulnerabilities, but it continued to grow and evolve in the coming years with price hitting an ATH of $420 USD.
In 2013, Litecoin implemented the Scrypt hashing algorithm, which made it easier to mine with consumer-grade hardware compared to Bitcoin’s SHA-256 algorithm.
In May 2017, LTC became the first major cryptocurrency to implement Segregated Witness (SegWit), a upgrade that increased its block size limit and improved its transaction.
Litecoin has also explored privacy-focused improvements, with the planned integration of Mimblewimble being a notable example. Today, Litecoin remains one of the most widely recognized and used cryptocurrencies in the world, with a strong community of developers and enthusiasts driving its ongoing development and adoption.
How does Litecoin Work in NZ?
Litecoin operates on a decentralized network that allows for peer-to-peer transactions without the need for a central authority, such as a bank or government.
The Litecoin blockchain is similar to the Bitcoin blockchain, but with some key differences. One of the main differences is that Litecoin has a faster block generation time, with new blocks added to the blockchain every 2.5 minutes compared to Bitcoin’s 10 minutes. This allows for faster confirmation times and higher transaction throughput.
Another difference is that Litecoin uses the Scrypt hashing algorithm, which was specifically designed to be resistant to the specialized hardware used for Bitcoin mining. This helps to make mining more accessible to average New Zealander.
What is Litecoin Mining in NZ?
Litecoin uses a PoW algorithm to validate transactions and secure the network.
Miners compete to solve complex mathematical equations in order to add new blocks to the blockchain and earn rewards in the form of newly minted Litecoins. This is done through the use of specialized computer hardware such as ASICs and GPUs.
Interesting Fact: Miners who successfully add a new block to the Litecoin blockchain are rewarded with 12.5 Litecoins per block. Learn more about Cryptocurrency Mining.
The Litecoin Halving is a pre-programmed event that happens about every four years.
During a halving event, the block reward that miners receive for adding new blocks to the blockchain is cut in half. This means that the amount of newly minted Litecoins that are created every day is reduced, which can have a significant impact on the token.
Interesting Fact: The first Litecoin Halving occurred on August 25, 2015, when the block reward was reduced from 50 Litecoins to 25 Litecoins per block.
The purpose of the Litecoin Halving is to control inflation and maintain the value of LTC over time by ensuring that the total supply of Litecoins does not exceed a certain limit.
By reducing the block reward every four years, the LTC protocol aims to gradually reduce the supply of newly minted LTCs and create a predictable, deflationary supply schedule
Based on Litecoin’s halving schedule, the next halving is expected to occur around August 2023. The block reward will be reduced from 12.5 Litecoins to 6.25 Litecoins per block.
Litecoin's Maximum supply
The maximum supply of Litecoin is capped at 84 million coins. This limit is hardcoded into the Litecoin protocol and ensures that the total number of Litecoins in circulation will never exceed this amount. As of May 2023, the current supply of Litecoins is around 67 million, which means that there are still around 17 million Litecoins left to be mined.
Private Keys and Public Keys
Acting as your digital identity and signature, every cryptocurrency wallet is distinct by having its own unique public and private key – with each unique key pair being freshly generated whenever a new cryptocurrency wallet is created.
- Private Key: Private keys is the password to your crypto bank account, and it’s required to sign off outbound transactions from your wallet. Never share your private key with anyone, and the security of your wallet rides on how safely you store your private key.
- Public Key: Litecoin public keys are like your crypto bank account number – an address others can use to send you Litecoin. You can safely send your public key to anyone, knowing they can’t change or open your wallet and take your Litecoin.
Recommended Litecoin Wallets
⭐Cryptocurrency NZ Recommendation 🏆
Exodus Wallet is a popular crypto wallet that provides a user-friendly interface and supports a wide range of digital assets. It is available for users in NZ and offers a convenient way to store, manage, and exchange cryptocurrencies.
Ledger Wallet is a hardware wallet designed to provide a secure and offline storage solution for cryptocurrencies. It is available for users in New Zealand and offers enhanced security measures to protect digital assets.
Litecoin Communities in New Zealand
New Zealand boasts a thriving community of Litecoin and crypto enthusiasts, many of whom gather on popular social platforms like Facebook, Telegram, Reddit and Discord.
These online communities are an excellent source of information for locals.
Check out our comprehensive list of Litecoin and Crypto communities in New Zealand:
- Cryptocurrency NZ Facebook Group – (Highly recommend)
- Cryptocurrency NZ Monthly Meetups – (Last Wednesday of every month)
- NZ Bitcoin / Crypto Miners Facebook Group
- Cryptocurrency NZ Discord Group
- NZ P2P Crypto Marketplace – (NZ’s Largest Cryptocurrency P2P marketplace)
Have a community for us to list? Please reach out to us!
How to Buy Litecoin in NZ
Is Litecoin a Good Investment in NZ?
At Cryptocurrency NZ, we believe that Litecoin has its own unique value proposition that sets it apart from other cryptocurrencies. Litecoin is known for its speed and efficiency, as it can process transactions faster and with lower fees than Bitcoin.
Litecoin’s decentralized network also provides New Zealanders with a high degree of security and censorship resistance. Like Bitcoin, Litecoin operates on a peer-to-peer network that is not controlled by any single entity or government.