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Litecoin is the No. 2 digital currency in terms of turnover and No. 5 in terms of the market value of its assets (capitalization). Like Bitcoin, it integrates workstations into a network, between which electronic money is exchanged. It also has such features as anonymity and the absence of a single control authority (decentralization), as in the most popular cryptocurrency. Essentially, it is one of the most famous forts of Bitcoin (Bitcoin). The actual developer and founder of this cryptocurrency is Charlie Lee. He took as a basis the idea of a decentralized Bitcoin network, slightly changed the mining process, the protocol, as well as the source code of the network itself. Based on these changes, the developer has launched its own network.
Litecoin vs. Bitcoin
Brief history of Litecoin
This cryptocurrency was developed in the likeness of Bitcoin, and the creator’s identity, unlike the creator of the most popular cryptocurrency, is known to all – Charles Li, an employee of Coinbase, who previously worked at Google. He launched Litecoin on 10/13/2011, but success was achieved only in 2013 when the capitalization of this virtual currency increased sharply.
The sharp rise was followed by a gradual decline in interest in Litecoin, since the sizes of the blocks added to the blockchain became too large, and the structural units themselves became too complex. This led to a fall in the rate and loss of interest from the miners.
Who made Litecoin?
Differences of Litecoin and Bitcoin
One of the well-known drawbacks of Bitcoin is the low speed of generating a chain of blocks, which is why network users have many hours of transaction freezing. In Litecoin, this parameter is at least 4 times higher, which allows processing a greater number of transactions during the same time period. In addition, due to the high generation rate of the unit, additional protection against double waste is provided. The number of coins that can be mined also compares favorably.
Litecoin Capitalization
Both the exchange rate and capitalization of the currency have a pronounced positive trend. For example, the first indicator in April of the current year was only about $ 9, and the second – 443 million dollars. By capitalization, this currency at the end of 2017 occupied the 5th place in the world. Her course was about $ 54. During the year, it rose to $ 70, the maximum rate was $ 90. Exchanges that support Litecoin more than Bitcoin.
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Litecoins Advantages
Since litecoin is essentially a slightly modified bitcoin, it is also mined. For mining Bitcoin, the SHA-256 algorithm is used, which uses a processor. Litecoin uses the script algorithm, which requires more memory. Like in the original Bitcoin, the issue of emission is limited and amounts to 84 million coins. In bitcoin 4 times less: 21 million coins. At the moment, only a quarter of this amount is already mined, so it will mine even more. At first, the miners for each new block received 50 LTC, but approximately every 4 years or 840 thousand blocks the amount of remuneration is halved. This is justified by the fact that the rate is growing, and the remuneration remains essentially the same. Now the reward for one new unit is 25 LTC, approximately in 2019, it will decrease by another 2 times and amount to 12.5 LTC.
The creator of the most successful Bitcoin analog project, a young genius from Canada with Russian roots, Vitalik Buterin is a legend of the cryptocurrency world. In 2008, someone Satoshi Nakamoto invented a revolutionary, completely different from anything before that moment, a monetary asset – bitcoin. In 2014, inspired by this development, the 19-year-old student created an absolutely new project that seeks to radically transform the entire Internet and change the entire existing economic system beyond recognition. This student’s name is Vitalik Buterin, and his project is called Ethereum.
Short biography of Vitalik Buterin
Vitalik was born on January 31, 1994 in the city of Kolomin in Russia. His parents – father Dmitry and mother Natalia – at that time were students of the technical university and studied at the faculty of computer science. At the age of 4, dad presented the boy with the first computer, which became his favorite toy. Interestingly, at such a young age the child was not interested in video games, the most exciting thing for him was creating macros in Excel. The father was not happy about this and asked the boy to finish his studies and get a diploma. However, Buterin refused and continued to act in his own way.
Running Bitcoin Magazine
Soon, he attracted the attention of the Romanian crypto enthusiast Mihai Alisi. Familiarity Buterin and Alice led to the fact that in 2012, they became the founders of the monthly magazine dedicated to bitcoin and cryptotechnology – Bitcoin Magazine. In parallel with his work in the publication, Buterin worked as a programmer in the Dark Wallet project, which developed a secure cryptocurrency wallet, and in the startup Egora, a decentralized marketplace on Blockchain.
Birth of ideak
A couple of years later, he handed over the magazine to BTC Media, while he himself began to study the alternative use of bitcoin and blockchain. In this, he was helped by Israeli developers from the Mastercoin and CovertCoins projects, who were charged with the idea of releasing alternative bitcoin-based tokens. Then Buterin came to the conclusion that with the help of the Turing language (which allows solving problems according to an algorithm using RAM), a mass generalization of the functions of the protocols is possible. This is how the Ethereum project, created together with Mihai Alisi, Joe Lubin, Gavin Wood, Charlie Hoskinson, and Anthony Di Iorio, appeared.
Writing the Ethereum white paper
In 2013, “white paper Ethereum” was born. The project team, in addition to Buterin and Alice, included entrepreneur and founder of Jaxx startup Anthony Di Loriot, as well as mathematician Charles Hoskinson, one of the main creators of the platform technology. Soon, Gavin Wood joined the project (He wrote for Ethereum Yellow paper – a preliminary technological description of the project, explaining the details of the processing of the distributed book data and the performance of smart contracts) and Joseph Lubin (Founder of ConsenSys, a developer of decentralized applications).
In parallel, Buterin received a Tile grant for young entrepreneurs seeking to change the world. 100 thousand dollars was enough for the project in order to cover the expenses at the beginning of the Ethereum project development.
Ethereum ICO
In 2014, the registration of the Ethereum headquarters in Switzerland was carried out. According to Buterin, the choice of the country was due to its world-famous banking system reliability, as well as the presence of favorable conditions for the conduct of cryptocurrency activities.
In the summer of the same year, the crowdfunding project was completed – he brought 31 thousand bitcoins to his creators. In return for spent BTC, the project investors received the first in the history of ETH. Then 60 thousand platform tokens were released. The full launch of Ethereum occurred in July 2015. Over the year, the project gained incredible popularity, but the platform was not afraid to accept quite risky ideas for implementation.
Ethereum is a blockchain platform with smart contract range of capabilities and purpose. Vitalk Buterin invented Ethereum as an underlying platform for developers in 2013 to develop decentralised apps. The platform’s popularity acquired tremendous fame, and so its currency Ether.
The whole process runs on Ether which is the necessary cryptocurrency tokens. Read the article Facts We Need To Know About Ether. Ether has lots of functions including consisting of assistance in the development of dapps and system updates. So, how do you acquire on some Ether?
How To Purchase Ethereum?
Here are the simple steps and guide on how to purchase an Ethereum online.
Get An Ethereum wallet
It’s apparent that you would require an Ethereum wallet to keep your Ether. The wallet is a requirement before you can purchase any Ether. There’s no lack of Ether wallets. You can find several numerous complimentary wallet apps for your phone to download the Ether wallets.
Get an Ethereum wallet
Purchase Ethereum On Cryptocurrency Exchanges
The vast majority of cryptocurrency exchanges will allow you to offer and purchase Ethereum. And even the Bitcoin perfectionists such as Coinbase have warmed to Ether. You’ll find it’s worth looking for the best rates there is.
What’s more, it’s difficult to go wrong with the most outstanding exchanges. Here are some of the transactions that offer Ether:
How To Buy Ether Anonymously
The easiest way to purchasing Ether is online; So, there are ways to buy it anonymously. Several users worry about security and data defence. It’s because some of the online exchange services require you to provide personal information to trade. And for some, it’s not their cup of tea.
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Purchasing Ether From Ethereum ATMs
Bitcoin ATMs turned out to be more and more popular. But, they’re by no means the only crypto-ATMs in the market at present. Ethereum ATMs also end up being more visible in bigger cities. When you’re able to locate the nearest Ethereum ATM, you can scan your wallet’s QR code with the machine’s cam.
Buying Ether With Money
An Ethereum equivalent appears in every Bitcoin platform. The platform gathers interested parties to transact and trade Ether.
Sign Up With An Ether Meetup Group
Are you one of those who feels uncomfortable trading with a stranger on the internet? You’re not alone. The good news is, there are several Ethereum meetup groups. The meetup groups answer fellow Ether lovers with their questions, meet face to face with fellow Ether admirers, talk and discuss over the most recent updates in the neighbourhood, and also trade tokens.
Staying Safe
How to purchase Ethereum and to make a deal are permanent. And there’s no process to recall the loan in case you made an error. So, stay safe and secure your Ether wallet by using two-factor authentication.
Which is the better between ICO vs VC competition? One of the foremost hardships startups experience is raising capital. And to solve this problem, any business can take advantage of ICO or venture capital (VC). But which ICO vs VC goals is better for any startups?
ICO Vs. VCO Competition
So in ICO vs VCO competition, which one is better for a company? There’s the option of the old and familiar venture capital (VP) and the Initial Coin Offering (ICO).
Venture Capital or VP is raising money coming from a group of venture capitalists who will take the risk of investing their money in exchange for the company equity. The Initial Coin Offering or ICO otherwise is raising money worldwide from any person who has the internet connection and enough money to purchase a token.
With the introduction of blockchain and cryptocurrencies innovation, ICO also had been present for a couple of years. The equity capital combines raising funds from several investors and has also been visible for around several years.
The basics of ICO is that it grants startups to fund themselves without any equity obligation. So ICO could be the game changer. Picture this, why should one share a per cent of the company if, at present, it’s potential to raise money without it? But, don’t rush into things because VC still has a couple of aces with it.
But why do startup entrepreneurs consider ICO as the perfect one? Reports say that there were 5.3 billion allocations be entrepreneurs who developed hundreds of ICOs launched in 2017.
Who can invest in ICOs?
Who Can Invest In ICOs And VCs?
One of the advantages in ICO is that nearly everyone can be an ICO financier as long as they have the internet connection and can access major cryptocurrencies like the Bitcoin (BTC) and Ethereum (ETH). In ICOs, the geographical place is never a barrier.
Furthermore, in ICO, you don’t even need a working item to attract investors as long as your concept is engaging. Another advantage of ICO is that the investment is open to both experts, knowledgeable and the unskilled or inexperienced investors.
Compared to venture capital investors who are often experiencing businesspeople, in ICO you can be an investor even when you have no business experiences. In VC, there should be a concrete and logistic plan and approach to everything.
You would require to have a superb idea, a clear demo, a prominent content on your documents, the best and well-prepared pitch, and a specific roadmap in VC. You should be an expert on your tone, so you have concrete answers to provide from potential capitalists. But the best about VC is that these investors will stick with your business for a long time and they’re not after fast money.
Where To Find ICO vs VC Audience?
First, let’s explain the difference of the ICO to the business consumer sales and VC to business to business sales. Also, it is crucial to note the pros and cons of venture capital vs ICO funding.
VC investors eagerly prefer local-based industries. Why? It lessens their need to study and understand several markets when it comes to competitors and guidelines.
But these kinds of funding commits to countless meetings and finalizing of several documents. Also, the geographical setting is also an essential factor to consider.
VC investors are seasoned businessmen. So, they have a lot to demand from your business and a lot to propose as well. When you don’t have the velvety pitch, an impressive demo, a hard-boiled but remarkable document, and realistically detailed roadmap, then forget VC because these investors will not buy it.
The best about the VC audiences are they’re more dependable and reliable. These investors will support your business for the long run and don’t expect a quick return on their capital. But these VC businesses at present are now also sighting on to the crypto sector to also take advantage of its benefits.
With ICO vs VC investors, the ICO is for everyone and from everywhere. Your business can have the potential to acquire a lot of money even from people living on another continent. You also don’t need to have a working product nor a track record of your business experience. As long as your idea has enough buzz, you will get the funds!
Take an important note that the nature of ICO is the “quick buy-sell process.” So, compared to the VC investors, the ICO investors will only stop by to sell the tokens for a quick profit. By the time they see you undertaking some issues, they will drop your venture without sentimentality.
What do investors look at?
What Do These Investors Look At?
These investors are enthusiastic that the ICO tokens will get high on with time granting them to generate revenues when they offer them later. ICO investors search for a strong idea that they assume will be attractive as soon as the project launched.
However, VC offers startups with several essential things on top of financing. VC financiers provide the startups with company guidelines, scalability, and consulting aside from funding. It’s because VC capitalists are the experts on these aspects. More on, these capitalists offer more business connections which are beneficial for raising the adoption of a brand-new company by the already recognized firms.
But How Do We Persuade Investors?
As an entrepreneur, it’s your foremost duty to raise capital whether through ICO or equity capital. But how to convince financiers? It’s to win the trust of the investors.
Having a stable and robust concept is enough to convince the investors to put funds in your projects. How to shorten the quantity of time you will need in looking for investors lies in how attractive your idea and plan are to the potential capitalists.
Where Can ICOs Launch?
ICOs are available across the globe as long as there’s an internet connection. The ICOs capitalists also don’t care about the geographical setting of the business using the ICO. They will only think about whether the value of their tokens will increase or not. ICOs develop the possibility of organizing together both project leaders and financiers.
Conclusion
ICO vs VC competition has several pros and cons. ICOs outpaced VCs in regards to the amounts collected by startups. ICOs interrupted the traditional investment processes and provided an even effective method of raising capital, yet, it’s still early to jump into conclusion on the fate of VCs. In summary here are the pros and cons of venture capital vs ICO funding according to Cointelegraph:
VC
• Investors Loyalty
• Business guidelines and knowledge support
• Building valuable connections
• PR credit
ICO
• Freedom, no equity required
• No working product needed
• No geographic limitations
• Rapidity – no bureaucracy