In this tutorial, we explain how to use the Litecoin electronic currency, including setting up the hardware and software needed to exploit LTC in the most beneficial way.
Litecoin (LTC) is a digital money and was created in 2011 as an open source project on Github by founder Charlie Lee, a former Google employee. LTC is a fork from the original Bitcoin and was created to improve the original shortcomings of the bitcoin blockchain protocol. LTC has a time of less than 2.5 minutes, with a total supply of 81 million coin and a more common Scrypt hashing algorithm.
Litecoin is one of the top 5 crypto by market capitalization (~ $ 8 billion) and is one of the few crypto used by Proof-of-Work (PoW). LTCs can not be profitable when exploited by hardware devices such as CPUs and GPUs, but must use ASICs, which are programmed specifically to exploit LTC.
On the issue of coin mining, you first have to think about whether you are going to exploit yourself or join the mining pool. LTCs benefit lone miners too, so if you are thinking of exploiting LTC, the best option is to join a mining tank. Harvesting in tanks is subject to associated costs such as tank charges but you can get rewards faster and reduce the reward difference compared to mining alone. Learn about the factors involved in exploiting Litecoin to gain a full understanding of the underlying technology and how it works.
The consensus mechanism and the exploitation of Litecoin
Litecoin is based on the Scrypt hashing algorithm, a PoW consensus mechanism. This is the most common PoW algorithm that is still used by other crypto. Charlie Lee used this algorithm for Tenebrix, an early altcoin. Scrypt itself incorporates elements of the SHA-256 algorithm, but has more serialized calculations. Large amounts of high-speed RAM are preferred when using Scrypt, not just with raw processing power.
A script is a function that derives locks in hard disk memory that will essentially require more memory than a regular algorithm. This makes the exploitation process more complicated than just exploiting Bitcoin or another crypto using SHA-256. LTC starts with an initial volume of 50 LTC. The current block reward is 25 LTC and the current blockchain size is 16.07 GB. To exploit LTC to receive the mass bonus required for ASIC excavators. In the past, you could exploit LTC using the GPU, but it has not been profitable since ASIC based Scripts scanners were released.
Litecoin hardware extraction equipment
In the past, you could exploit LTC using the GPU, but it has not been profitable since ASIC based Scripts scanners were released. Although mining with CPU and GPU may not be profitable, it can be a good way to learn how to exploit it. Consider using them to get familiar with the process.
When it comes to ASIC excavators, you will need to make sure that you are choosing the latest models as older ASIC excavators are hard to compete and profitable. The best LTC digging in the market is AntMiner L3 +. It was built by BitMain, one of the largest and most reliable bitcoin diggers manufacturers and the fastest LTC operator. You should buy as many ASICs to increase your profits. You will need to purchase a separate power supply cord as it is not sold together with the diggers. The APW5 power supply can provide up to 1300W / 110V or 2600W on 205V +. You will also need to use extra fans for ASIC cooling.
The great thing here is that when you buy a Scary-based ASIC, you can exploit any coin based on Scrypt. For example, if you find that LTC exploits are not as profitable as you originally thought, you could start exploiting Dogecoin (DOGE).
The software used to exploit LTC is as important as the hardware. ASIC is usually pre-installed software. You just follow the instructions and it will be quite easy to start using BitMain and Antpool. Joining a tank increases your profitability and decreases the reward gap over time. It will be difficult when a solo miner competes with the strength of another tank so it is best to join a credible tank tank to increase your profit potential.
You also need a wallet to receive your block bonus. Hardware wallets like Ledger Nano S and Trezor are the safest and most reliable purse for LTC, but you can also create online wallets here.
Difficulties in exploiting and profit
Litecoin's global accretion has increased steadily over the past few months, indicating an increase in total mining capacity (more ASICs are in use). Hashrate is related to the price of coin and it is also quite hard to keep track of the hashrate.
The degree of difficulty in calculating the difficulty of solving the next block and maintaining the block time is 2.5 minutes. The difficulty level has increased with the hashrate. Difficulty increases require more computing power. This can also be used as a price indicator. If the hashrate and level of difficulty increase, that means coin is becoming more popular and will increase in price. Exploiting LTC based on long-term growth potential is proven to be profitable.
Here is a chart outline of potential profits using the cryptocompare website. This site will allow you to enter various inputs and review the profit potential so that you can evaluate your total cost and profit. This is for illustrative purposes and the results may vary depending on your input and the market price of Litecoin. It is also based on the LTC price of $ 146.25.
With the use of ASIC for the Scrypt algorithm, you will be more profitable if you choose to exploit Litecoin with multiple ASICs. The more ASIC machines you use, the sooner you pay off your initial costs and start earning profits. You need to pay attention to the ASIC market to see if new diggers are coming soon and may make your hardware obsolete. Research and use computers to estimate your total cost and potential profit.
If you have any questions about hardware or software exploits Litecoin, please join us for comment.
Theo: TapChiBitcoin / cryptovest