The sale of Bitcoin Cash and Litecoin by Charlie Lee has generated quite a stir. The two cryptocurrencies have been compared to a degree, but what’s the real difference between them? What’s the transaction volume? How much more secure are Bitcoin Cash’s transactions? And why is Bitcoin Cash’s transaction volume higher than Litecoin‘s? We will answer these questions in this article. Read on to learn about the two cryptocurrencies and how they can benefit your cryptocurrency portfolio.
Charlie Lee’s controversial sale of bitcoin cash litecoin
Some believe Lee’s sale of Bitcoin Cash to make way for the cryptocurrency represents a conflict of interest. While he is no longer a Director of Engineering at Coinbase, he still owns stakes in Litecoin and Bitcoin Cash. Lee also faces allegations of insider trading. However, some people do not believe Lee is acting improperly. It’s not clear whether Lee’s actions will result in any regulation.
Litecoin is a cryptocurrency similar to Bitcoin that was created in 2011 by Lee. Lee spent his days at Google before becoming a director at Coinbase Inc. He later left the company to focus on Litecoin development and promotion. The coin has 79 million coins in circulation today. Charlie Lee’s Twitter banner features a manga representation of the currencies Bitcoin and Litecoin.
Bitcoin Cash’s 32-MB block size vs Litecoin’s 1-MB block size
One of the biggest differences between Bitcoin Cash and Litecoin is the block size. Bitcoin uses a one-MB block size limit, but the Bitcoin Cash network has increased the maximum block size to 32 MB. This is because Bitcoin Cash’s software can process large blocks in the future. However, many people mistakenly think that BCH miners are processing blocks larger than one megabyte, when they are actually only processing a block that is less than 1 MB. The developers of BCH have made it clear that the 32MB code is for the future, not for now.
Litecoin is currently more widely accepted than Bitcoin, and is backed by Roger Ver and Jihan Wu. However, it still suffers from low adoption. Despite its relatively low adoption rate, it has a lot going for it. The main reason that people choose Bitcoin Cash is the larger block size and faster transaction speed. In addition to this, Litecoin has significantly lower transaction fees than Bitcoin.
Litecoin’s Layer-2 scaling
Litecoin has been a pioneer in the field of blockchain technology, and it is now utilizing Layer-2 scaling to improve its price and transaction speed. This type of scaling is used to enable blockchains to scale and is crucial for the development of DApps. These DApps provide new use cases for the crypto currency and can greatly assist in the world’s shift to a decentralized economy. But what is Layer-2 scaling?
A blockchain’s Layer-2 scaling is a way to solve the scalability problems that plague many cryptocurrencies. Essentially, layer 2 is a protocol that allows third parties to integrate with the main blockchain. Blockchains use both Layers and are connected through an underlying chain. The layer-1 blockchain is the foundation layer of a crypto currency. The layer-2 network sits on top of that blockchain. These two layers are connected for archiving purposes, and the layer-2 network must be able to validate transactions before casting them on the main chain.
While bitcoin continues to grow, altcoins are struggling to catch up. Bitcoin cash and Litecoin have much smaller transaction volumes, and while the Litecoin network has a higher transaction volume, the fee for making a transaction on the BCH network is significantly lower. These coins both have the same average transaction value, which is around $50 to $100, but BCH’s transaction volume is ten times faster than that of LTC.
In recent months, Litecoin has outpaced Bitcoin Cash in transaction volume, registering in the twenty to thirty thousand range. Bitcoin Cash, on the other hand, has hovered around ten thousand. However, this may be due to Litecoin’s use of Layer-2 scaling and larger block sizes. Both coins are still in the early stages of their development, and their growth will likely continue to be measured in years to come.