Ethereum is now the second largest cryptocurrency after bitcoin in terms of market cap. It dislodged Litecoin from its previous position to take up the top spot among altcoins.
The market capitalization of Ethereum is bound to grow compared to that of Litecoin for various reasons. Litecoin is an alternative peer to peer payment protocol whereas Ethereum is a smart contracts platform which has more applications in the real world than just executing payments. As the adoption of Ethereum protocol for various blockchain applications involving banking and fintech sectors increase, the value and market capitalization are bound to increase as well.
Litecoin is an alternate to bitcoin created by Charles Lee, the brother of Bobby Lee, the founder of BTCC. Litecoin was created as a fork of the Bitcoin-QT client. Litecoin was created with the intention of improving certain flaws of bitcoin by decreasing the block generation time, increasing the maximum number of cryptocoin that can be mined and more. The digital currency also used a different variant of hashing algorithm called Scrypt, which is a proof of work protocol. Even though the use of Scrypt was to prevent the use of FPGA and ASIC miners for mining Litecoin, it failed as it is now quite possible to mine Litecoin with dedicated equipment.
While Litecoin was created as an alternative for Bitcoin, Ethereum protocol was created as a blockchain-based applications protocol. Blockchain-based applications are smart contracts programmed over the blockchain, these smart contracts can be executed automatically once the preprogrammed conditions for its execution are satisfied. Ethereum uses Ether as a crypto token for value exchange on the platform. In addition, the Ethereum protocol currently running on Ethash proof of work protocol will soon be migrating to proof of stake system called Casper. Once Proof of Stake algorithm is initiated, it will be virtually impossible to use dedicated hardware to accelerate mining. It is very important in this case as Ethereum uses the processing power to run decentralized applications on the network and not just for the discovery of new blocks so that the miners a get their rewards, sooner than later.
As the demand for Ether, the cryptocurrency used by Ethereum protocol increases, there are a lot of questions about its future and comparison with other digital currencies floating around. If we have to compare Ethereum with Litecoin, one can find few similarities and enough differences. What makes this discussion even more important is the recent news about Litecoin being added alongside bitcoin and ether on Shapeshift. Earlier last week, the Erik Voorhees led crypto-crypto exchange recovering from the hacking attempts made this announcement about the inclusion of new cryptocurrency into the platform.
Bitcoin still leads the way as a digital currency for peer-to-peer transactions and fund transfers. Ethereum and Ripple are second and third in line when it comes to market capitalization. Litecoin is currently in the fourth place and as of now, it may continue to maintain the position for some more time before getting an opportunity to climb the ranks.
Investors are Selling Gold to Invest in Bitcoin, Key to Multi Trillion Dollar Market Cap
According to ACG Analytics US macro strategy head Larry McDonald, investors have begun to sell gold to invest in bitcoin through the newly launched bitcoin futures exchange of the Chicago Board
Cramer: Bitcoin's futures launch is a 'very big victory' for the digital currency
The launch of Bitcoin futures on the Cboe Futures Exchange over the weekend was a "very big victory" for the digital currency, CNBC's Jim Cramer said Monday. Bitcoin futures, trading under the
Here's what bitcoin futures could mean for the price of bitcoin
Grey Dwyer, BitMEX head of business development, talks with Business Insider executive editor Sara Silverstein about how futures contracts are going to impact the bitcoin community. Following is a tra
Litecoin Price Leaps 30% to New All-Time High
Litecoin price leaped by nearly a third on Monday, raising the sixth-largest cryptocurrency to a new all-time high.
For most of December, the litecoin price had traded between $90 and $100, but on
Bitcoin Analysis December 12, 2017
BTC/USD Bitcoin has been very volatile over the weekend, reaching as low as $13,000. However, after futures trading opened a, it became apparent that buyers were jumping into the Chicago exchange.
Ethereum Analysis December 12, 2017
ETH/USD Ethereum has been choppy over the last several days, as the weekend was noisy. Most of the interest around the world seems to be focused on Bitcoin and the reaction of the Chicagoâs
DASH and Litecoin Analysis December 12, 2017
DASH/USD DASH continues to be very choppy, forming a bit of a âW patternâ over the weekend. Because of this, I believe that we are eventually going to break out to the upside but a move above
BitGo Scores $43 Million as Crypto Goes Corporate
BitGo, the maker of multi-signature cryptocurrency wallets for enterprises, has closed a $42.5 million Series B funding round in a sign that demand has at last arrived for institutional-grade services