What is Ethereum and Litecoin? Learn the basics and prospects for the future.
The TOP 10 cryptocurrencies list has changed many times in history, but Ethereum and Litecoin have been on this list for many years, and are still there unchangeable. Today we will analyze these two cryptocurrencies and find out what waits for them in the future.
Table of Contents
Ethereum: features and updates
The second most popular and capitalized cryptocurrency, Ethereum, is showing very high returns this year. Since the beginning of January, ETH is up 230%. Moreover, it set a new all-time high of $4,362 on May, 12. However, the price started going down shortly after the rise. Today, experts believe that the coin will see further increase in price in 2021 and later.
The long-awaited launch of the genesis block of the zero phase of the updated Ethereum 2.0 protocol — the Beacon chain network — took place on December 1, 2020. The crypto community had been anticipating it for years. Why is it so inspiring for Ethereum bulls, and why is Eth2 considered such a significant milestone in ecosystem development?
Ethereum and its virtual machine
Representatives of the crypto industry kept an eye on the Ethereum blockchain during 2020. It was primarily because, unlike the vast majority of cryptocurrencies, Ethereum clearly demonstrated an independent financial ecosystem.
An essential advantage of Ethereum is that it was created not as another digital currency but as a whole infrastructure based on the blockchain.
Besides the ability to send tokens within the network (for example, Ether), the blockchain can also execute codes and store information. In other words, it is a massive computer with a decentralized database.
One use case for blockchain is smart contracts that store various types of digital information. Their codes are programmed to work when certain conditions are met. This eliminates the need to involve intermediaries in transactions. This practice has found its best application in the decentralized finance (DeFi) segment.
The distributed ledger eliminates the possibility of fraud or falsification of the parties’ codes. Each transaction is verified on many computers, and information about it is stored on many users’ devices simultaneously.
How does Ethereum 2.0 work?
Ethereum currently uses the Proof-of-Work mining algorithm; however, Ethereum 2.0 will use the Proof-of-Stake consensus. It will improve the efficiency of the network.
In other words, users will deposit their Ethereum tokens to confirm blocks and receive a reward. This process got the name “staking”. The developers hope that this approach will streamline the validation process and increase transaction processing speed on the Ethereum network.
The transition to a new consensus algorithm is not the only innovation implemented in Ethereum 2.0. The primary invention of the ecosystem will be the support of several blockchains, so-called shards. This technology allows increasing the speed of transaction processing.
The ETH network is enormous, and all validators need to be up to date and confirm transactions. Sharding simplifies the process by creating sidechains that contain only a part of the history of transactions on the Ethereum network. Thanks to shards, the EVM will process not tens but thousands of transactions per second.
Litecoin: Crypto Silver
On May 10, 2021, the LTC price broke the $400 level for the first time in its history. It is one of the top 15 coins, with ETH, XRP, USDT, and other younger cryptocurrencies ahead of it. However, it is gaining popularity again. Here’s what you need to know before planning to buy Litecoin.
The coin rate is volatile and changes every second, just like most other cryptos. If you want to check the rate of Litecoin or Ethereum or know how much is one ZEC to BTC in real-time, check it out in the calculator tool on the Godex.io decentralized exchange.
LTC in figures
Litecoin is a cryptocurrency that investors, traders, and the mass media often ignore. However, this veteran coin has remained in the top in terms of capitalization for many years.
The beginning of 2021 turned out to be incredibly successful for LTC: the price jumped from $125 in early January to $412 (May 10). Then, however, the price fell to $200. Capitalization is currently $13.3 billion, and the daily trading volume is around $9 billion. A year ago, LTC cost only $50.
What’s next for Litecoin?
Litecoin is waiting for a significant upgrade under the ridiculous name of MimbleWimble (after the spell in “Harry Potter”) soon. It will allow users to increase the privacy of transactions. In particular, when this function is activated, the sender can hide the amount of LTC in the transaction.
The founder Charlie Lee claims that MimbleWimble will not make Litecoin an anonymous coin like Monero since each participant will decide whether to hide their transactions or not. It means that LTC does not run the risk of being excluded from crypto exchanges due to regulatory claims, as happened with many anonymous cryptocurrencies.
So far, MimbleWimble is undergoing an open audit period. With approval from the community, the position of the coin will further improve.
Conclusion
The top cryptocurrencies list has changed many times. However, Ethereum and Litecoin have been on this list for many years now. Large communities and competent developers stand behind these projects. For example, the Ethereum Foundation is the largest community of programmers in the world.
Major updates wait for both coins in 2021. If everything goes according to plan, it will positively impact the further development of these projects
