Litecoin is a decentralized, peer-to-peer network that’s used to make payments between two or more people or entities. Litecoin functions litecoin vs bitcoin mining profitability a similar way to Bitcoin.
Just like Bitcoins, Litecoins are not controlled by any particular person, organization or government. Also, they’re available to be sold or bought at virtual cryptocurrency exchanges, and they carry a monetary value that decreases and increases with time. Mining for Litecoins is similar to Bitcoin mining. The mining process involves a four-fold setup. Users will need to have four different things in place before they can start to mine. Litecoin Wallets These are similar to having a bank account.
Users who intend to mine Litecoins need to have Litecoin mining wallets. These wallets have a private key and a public key. The public key is similar to a bank account number and it’s given to the people who want to pay the user. The private key is like the user’s signature and it’s used to verify transactions. The public key is safe to give out to users but the private key must remain confidential. Litecoin Mining Hardware Mining of Litecoins in the past used to be possible with the aid of GPU systems and CPU systems just like Bitcoin.
As the number of Litecoin miners is increasing with every passing day, so has the Litecoin mining hardware advanced. Today, it’s not profitable mining Litecoins using CPUs. Also, GPU mining would yield little in terms of result. But, dedicated ASIC devices have been developed for Litecoin mining. Litecoin Mining Software The CGMiner program is usually used when it comes to Litecoin mining.
However, with the changes in technology, the GUIMiner has become quite popular. The GUIMiner is essentially a GUI version of the CGMiner. Some miners now come with their own dedicated software bundles. Litecoin Mining Pools These are critical to the needs of miners. Pools are crucial because when users mine alone, they have very limited resources and limited budgets.