The Difference between LTC, BCH, and BTC
Have you ever wondered about the differences between LTC, BCH, and BTC? What are they created for and how were they created in relation to Bitcoin?
Today we are going to compare them for you to see clearly and clear your doubts!
What is Litecoin?
Litecoin (LTC) is a cryptocurrency designed for fast, secure, and low-cost payments by taking advantage of the unique features of blockchain technology.
Litecoin, or LTC, was developed from the Bitcoin blockchain to provide similar functionalities. The difference is that Litecoin is designed to be flexible to provide fast, secure, low-cost payments while still being a peer-to-peer digital currency on a decentralized blockchain network, processing transactions without the need of an intermediary.
Apart from that, Litecoin is a cryptocurrency that was created using the Bitcoin protocol in 2011 by Charlie Lee, or also known as “Chocobo,” a former Google software engineer who later became the Engineering Manager at Coinbase. The purpose of his creation was to make this coin to be like "Silver" compared to Bitcoin as "Gold".
Litecoin uses a Proof of Work (PoW) consensus system with Scrypt cryptography to provide error-free confirmation of transactions. It also helps prevent double-spending and other types of attacks. More than that, each block is still 1MB in size and takes an average of 2.5 minutes to create a block, with a total of 84 million coins, or 4 times the total number of Bitcoin.
What is Bitcoin Cash?
Bitcoin Cash (BCH) is the first cryptocurrency to have separated from Bitcoin via hard fork in 2017 as a result of concerns of scalability to support the growing number of Bitcoin transactions.
Moreover, this is also the period when the price of Bitcoin keeps rising, leading to more users. When there are a large number of transactions it causes delay. The developers could not come to an agreement on how to increase the speed of the network. As a result, causing a separation from Bitcoin.
Bitcoin Cash is a peer-to-peer electronic money system. With the purpose of being globally-used money that can be used to make payments easily, quickly, and with low fees. In addition to peer-to-peer payments, it can also be used to pay to participate shops.
As a result of the Bitcoin Cash hard fork, all current Bitcoin holders automatically received BCH. The ratio is equal to 1:1. Another specialty of BCH is the increase in block size from 1MB to 8MB -32MB, enabling more transactions to be handled which solves the problem of late payments. and the high fees of Bitcoin.
What is Bitcoin SV?
Bitcoin SV (Bitcoin Satoshi Vision) was created from the Bitcoin Cash (BCH) hard fork in 2018 and is a self-claimed original Bitcoin coin that follows the vision of Satoshi Nakamoto, Bitcoin’s creator(s).
The founder of Bitcoin SV is an Australian entrepreneur and founder of fintech company nChain, Craig Wright, who has publicly claimed numerous times to be Satoshi Nakamoto. The main purpose of the Hard Fork to BSV is to provide stability and scalability which is what the original Bitcoin blockchain is trying to accomplish. The project website says: “Bitcoin SV aims to provide a clear choice for miners and allow businesses to build applications and websites on the network transparently”.
Bitcoin SV stands out for its block size which can be at 128MB - 2GB and also uses a Proof-of-Work (PoW) consensus algorithm, wherein before a block is added to the chain, miners would solve complex mathematical equations using computing power and the first miner who successfully solves the problem would be rewarded for their contributions. As a result, this infrastructure provides protection against 51% Attacks and other malicious systematic breaches.
LTC v.s BCH v.s BSV
It can be seen that these three coins have similar goals, which is a better development on Bitcoin as the original system has a block capacity of only 1 MB. Therefore, the BTC network would often experience delays in processing transactions due to the limited number of transactions that can be supported.
Later on, as the ongoing conflict in the Bitcoin community continued, events led to a hard fork that created the first Bitcoin Cash coin which has a block size larger than Bitcoin at the rate of 8MB - 32MB to support transactions and increase speed. However, there is a group of people who are dissatisfied with maximizing the block size to 32MB, causing the BCH to hard fork again, creating the Bitcoin SV chain.
The creator of BSV claims that the coin retains the original properties of Bitcoin, but increases the initial block size to 128MB - 2 GB, which is considerably larger than the block size of BTC and BCH. Also, BSV’s block size can be adjusted according to the approval of the network.
Moreover, the hard fork of Bitcoin is often elaborated due to the need to develop a new system to solve problems that the old system encountered. This results in a new blockchain network that responds to more usage.
Each coin has its advantages and different restrictions depending on how investors and developers utilize it to gain the most benefits. However, Litecoin, Bitcoin Cash, and Bitcoin SV are considered reliable and popular, which has led to high liquidity in all three platforms.
Investing in digital assets involves a high level of risk. Investors should study the information carefully to reduce risks and increase investment efficiency before making any investment.