Litecoin (LTC) vs Dogecoin (DOGE): What Is the Difference?
Litecoin and Dogecoin are among the most well-known cryptocurrencies. They both belong among the top 20 cryptocurrencies by market capitalization.
Apart from this, they have many more similarities in their design and how they work. For example, they are both proof-of-work (PoW) cryptocurrencies, similar to Bitcoin. They therefore function in a similar manner.
In this guide, we’ll explore the major similarities and differences between these two projects to help you better differentiate them. The guide will also help you to decide on which one to invest in, so let’s get started right away.
What Is Litecoin (LTC)?
Litecoin is a PoW cryptocurrency referred to as the silver to Bitcoin. This is so because Bitcoin has been commonly referred to as digital gold. However Bitcoin failed in its initial intended use case as peer-to-peer electronic cash.
The failure was as a result of network congestion which results in slow transactions and high network fees. Litecoin was therefore created as an alternative that is able to accomplish this aim that was initially for Bitcoin.
As a PoW network, Litecoin depends on miners to process its transactions and keep the network safe. Just like Bitcoin, the miners use special computers to solve mathematical problems and are rewarded with new LTC coins.
However, Litecoin processes transactions faster than Bitcoin because of its design. It has a bigger block size and so takes only 2.5 minutes to finalize transactions unlike Bitcoin’s 10 minutes. This means the network is also four times faster than Bitcoin.
Litecoin is therefore popularly used as a means to pay for goods and services online at different stores. The network fees are also much lower than that of Bitcoin, because the network is more scalable and faster than Bitcoin’s.
There are over 74 million LTC in circulation currently, but it has a total supply and maximum supply of 84 million coins. This is exactly four times the supply of Bitcoin which has 21 million coins.
What Is Dogecoin (DOGE)?
Dogecoin is the most popular meme cryptocurrency in the space. It was also the first to be created, and has grown in popularity since. The project was launched as a fun cryptocurrency with no real use cases, only as a joke.
Like Litecoin, it is also a PoW cryptocurrency design after Bitcoin. Miners help to secure the network by using special computers to mine new DOGE coins and bring them into circulation. They also help to verify transactions on the network.
Although Dogecoin was launched with no real world use cases, it became popular when Billionaire Elon Musk started supporting the project and tweeting about it. Dogecoin has soared to new price levels and made many investors rich over the years.
The team is currently working on use cases for the project in order to ensure that its popularity is sustained. They are therefore looking into making it to support non-fungible tokens (NFTs). Already, DOGE is accepted as a means of payment by many top stores including Tesla, Musk’s electric car company.
Unlike Litecoin however, Dogecoin doesn’t have a capped supply for its coin, DOGE. The network currently has a circulating supply of 145 billion DOGE, but the supply is infinite, which means that more DOGE will be mined as long as the network exists.
What Is the Difference?
Litecoin and Dogecoin use the same consensus mechanism known as PoW. However, they are very different as we have discussed. At the same time, the network you choose depends on your goals.
If you’re looking for a fun cryptocurrency whose price action is majorly driven by sentiment, Dogecoin is a good option. Most of its supporters only like it because it was inspired by the popular Shiba Inu dog breed.
However if you’re looking for a long-term investment asset, Litecoin is the better option. It has a much smaller supply of coins and more solid use cases than Dogecoin, which makes it useful and by extension valuable.
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