Learn everything you need to know in order to mine for Litecoin (LTC) profitably including hardware, software, and mining in the cloud!
Litecoin is a cryptocurrency or virtual currency which is like digital cash or money online that is not backed by any bank or government.
A quick description of Litecoin Mining is that you make an entry on your computer to a database which is backed through a network that belongs to that currency. Then the mathematical formula behind the entries will secure the transactions.
Once the transaction is published and registered, it will be shared with a network database. That's to make sure the same Litecoin cannot be immediately entered back into the market again.
The secure network is peer-to-peer, so there's a historical record that's created of where that Litecoin went to, and from whom, every single time. This will make sure that there will not be a duplication of that same Litecoin transaction twice.
History of Litecoin Mining
Having a history of that Litecoin, which gives a balance of all accounts, is important in achieving an innovative and secure way of providing large groups with the capacity to make money transactions without the control of a central authority.
In many cases peers inform each-other regarding this new system of currency transaction in order to motivate the “miners” or people you know, to find the incentive to check the entry you made of the cryptocurrency and to continue to use the network system. This is a unique method of distributing Litecoins to anyone with the desired interest.
Peers are rewarded for solving a group of entries known as a “block”. When a hash or cryptologic puzzle connects an old block to a new one, it's been solved. Your peers are, in a way, competing to solve the puzzle.
Here are some of the similarities of all cryptocurrencies:
1) They are global and fast – All transactions are internationally accessible and take place within a couple of minutes.
2) Anyone can open a wallet at any time.
3) There's security in the transaction – All cryptocurrency transactions use the latest mathematical security techniques.
4) There's a network-controlled large supply of these virtual coins.
5) The transaction is irreversible – There's no charge-back and once a network confirms receiving the cryptocurrency, you can not retrieve it.
So Let's Find Out More About Litecoin
Just as no one knew what Bitcoin was about 8 years ago in 2009, Litecoin is a Cryptocurrency that was the invention of former Google engineer, Charlie Lee in 2011.
At that time Lee has foreseen and even went so far as stating that Litecoin was the silver coin of these virtual altcoins and that Bitcoin was considered to be the gold altcoin.
By the way, a cryptocurrency is a form of digital asset that's used as a unit of exchange to make a transaction. It can control and create additional units and get transferred. It's a type of abstract coin, even though it does exist in a tangible form these days.
In December of 2017, the value of this “altcoin” or alternative coin, soared 8,000%; just as much as bitcoin has. There are many online companies that sell these type of virtual coins or abstract currencies, that for now at least, seems to be an extremely volatile method of investment.
It's quite obvious that digital currencies have risen to be as a somewhat profitable investment. There are a vast number of cryptocurrencies that are emerging in the market these days and the information is being shared via social media like wildfire! No one knows which one of these currencies are going to stay in the market, so what are some of the reasons to buy.
Mine Litecoins instead of Bitcoins?
Well, here are generally 3 good reasons to invest in Litecoins:
1) Litecoins are different from the other cryptocurrencies
2) It's a good introduction to the future of online currencies
3) There's a history behind Litecoin's that is very promising
Let's also briefly look at the technical differences between Litecoin and Bitcoin.
Bitcoin operates on a “block chain” or secure data ledger that makes sure every time information is accessed, or for that matter updated, it will be sealed off using encryption so that no one can go in and access it, other than the developer or person with the key to it.
Litecoin, on the other hand, has a network that is faster. As an example, mining a block of Litecoins only takes 2.5 minutes. For Bitcoin, it takes 10 minutes to do so.
Let's get into what mining means:
The word “mining”, is in actuality a process where a transaction is checked and then added to a public ledger or “block chain”. Cryptocurrencies are also released through block chains. If a person is connected to the internet and has the proper hardware, they can start mining.
Mining involves solving a difficult puzzle that has been computed. The first person who solves the puzzle will be able to place the next coin and claim a reward. The reward is the transaction fee and a new coin; whether it's a Litecoin, Bitcoin or the new cryptocurrency known as Ethereum.
Litecoin transaction fees are almost zero compared to Bitcoin. As far as supply is concerned, there are 84 million Litecoins verses only 21 billion Bitcoins. The algorithm used by Litecoins is called Scrypt and the Bitcoin algorithm is known as SHA-256.
Scrypt verses SHA-256
For solving the memory key-derivation function of Scrypt, which is able to adjust and store more random variables than SHA-256, a larger RAM (Random Access Memory) is needed on the computer, since there are so many numbers to compute.
Many “pseudorandom” or the function of random testing using mathematical formula numbers are accessed by an algorithm before reverting an outcome. Speed is optimized for the time/memory trade-off.
Scrypt also lowers the capacity of ASCI or the Application-Specific Integrated Circuit for Bitcoin miners during the communication system. This means there is less use of energy- power during the total network function.
SHA-256 is short for Secure Hash Algorithm. It's used as a type of signature for data files and will generate a signature of 32 bytes or 256-bits for a text. It's a one-way function that can't be decrypted. Most coins are moving towards the Srypt system of mining these days.
Hardware used for Litecoin Mining
The best Litecoin mining hardware is the Antminer L3+. It's compact and portable, but smaller than a boom box. Made from an aluminum case that has customized heat-sinks with two fans to keep it cool and that is controlled via a computer.
With a small footprint, this hardware is made in a time-tested design to perform powerfully without heating up too much. Best of all it has a nice user interface and it's easy to use. All that's needed is a mining pool setting and a wallet address to start mining.
Here are a few terms you will need to know:
- Litecoin mining software uses a transparent process so that binaries can be verified independently, as well as the source codes that correspond to it. MIT/X11 provides the possibility to run, copy and modify and distribute the Litecoin mining software since Litecoin is under an open source program.
- Litecoin mining rig or piece of equipment designed for a particular purpose is a type of computer that is used for mining Litecoins. It can also be used for gaming purposes. There are several companies online from which you can purchase a Litecoin mining rig when you look for them.
- Litecoin is a mining pool that does not charge a fee. It will mine and automatically merge seven other cryptocurrencies similar to Litecoin to each other.
Installing your Litecoin CPUminer
A CPU is the brain area of the computer where most calculations take place.
CPUminer is a convenient software program that is simple for performing solo or pooled mining on a computer and is available for download on your desktop. It's available in the Windows, OS X and Linux version for your operating system.
Outsourcing mining contracts is another method that is available from some companies for one year and the uptime is 100%.
Litecoin Mining Cloud
Cloud mining is a good way to get involved in Litecoins for those who are not tech savvy and who prefer to run software that is available in a cloud. It will also save you electricity and also not run the programs on your hardware. There are several cloud mining providers online.
If you prefer, you can obtain a Litecoin mining cloud contract. There are some regulations and policies on that which you would need to read about before you sign a mining cloud contract. So a Litecoin Mining Profit is when you make a profit from the mining of your Litecoins.
If you get a wallet encryption you can view and secure your transactions and obtain your account balance, although you'll be required to give yourself a password so that you are protected from viruses that may try to steal from your wallet. Wallet encryption can also assist and prevent you from having problems with Litecoin mining profit before you send any payment.
How does Mining take place?
It's better to do mining on a computer as it may not be as efficient to download an app to do Litecoin mining on Android. For one, the battery life of your phone or mobile device will be reduced very fast. Also, the battery will heat up quite a bit.
It has been known that sending Litecoins to people over a network is not enough. There should be a record of these transactions for recording purposes, but also to keep track of who paid what, and what was the result and outcome of those set of mining transactions.
There's a Litecoin mining contract network that will collect and list all the transactions you've made within a given period. The name for this is “block”. As a miner, you must first confirm any transaction that takes place, and secondly, write them and record them on a ledger. In that way, you can note to yourself and ask yourself: Is Litecoin mining profitable long-term on a mobile device?
What is Litecoin mining with Raspberry Pi?
This UK-based company is a charity foundation that wants to aid the world that's becoming digitized more and more every day. By showing people of all ages and backgrounds, how digital technology works and how they can quickly become immersed in this new tech-world, the company feels everyone can fit in.
Raspberry Pi is a small, low priced computer that's the size of a credit-card. It can plug into a TV and monitor. By using a regular mouse and keyboard, it is able to observe people while they discover and learn to programme. It's also capable of making spreadsheets and allows you to browse on your favorite internet site. Kids play high definition video games using it. Adults can use it to do word-processing and play games online.
The best part of Raspberry Pi is its ability to interact with the entire world, and one of the main goals of the company is to assist everyone, especially all children, to learn to understand the way computers work. Currently, it's being used by international weather stations, by all types of music machines and many infra-red cameras where interactive communication has been required.
Litecoin mining how to with Raspberry Pi is another thing that is being looked into. It's however advisable that because today almost everybody is mining together, as opposed to on their own, it is better to join a pool in order to mine a block with someone else.
Miners compete with each other to mine specific blocks. Every time a hash has been created, that person gets 25 coins and the rest of those in the blockchain will know about it. That's one of the biggest incentives in playing and also staying with the mining process.
With a collection of data, it's easy to produce a hash, but the altcoin protocol makes it deliberately difficult by not accepting any hash. The block has to have a certain number of zeros in it, in order for it to be approved. That's called “proof of work”. When a new piece of data is introduced to the hash mix, the hash will look very different, because the miners have to change the data they use to create a new hash.
A way of gaining Litecoin's is through mining by using standard computing equipment. It is smart to research everything you need to know about mining Litecoins before you start since you do not want to invest funds and take the risk of losing your investment.
Litecoin, in general, is more abundant and also lightweight. It uses scrypt as it's algorithm for showing its proof-of-work. In the future, there may be scrypt ASIC mining that may come into the arena. Litecoin is still lower in price and value than that of Bitcoin, although some people are purchasing both types of altcoins.
In all cases, miners with the same hardware specs need lots of patience and a willingness to risk, even though everyone, in the end, will somewhat reach their goal at a different speed and Litecoin amount. Everyone can and will want to mine, once they learn the rules and regulations of trading Litecoins.