Bitcoin Vs Litecoin: Which One is a Better Decentralized Payment System?

Bitcoin vs Litecoin is an obvious comparison when it comes to some of the top cryptocurrencies. Both these cryptocurrencies are very much similar in nature except for some subtle updates and changes in the litecoin design. At the outset, litecoin is simply a better version of the original bitcoin design. Here are some of the important features that sets these two cryptocurrencies apart.

Bitcoin is Classic

Bitcoin vs Litecoin - Bitcoin logo

Despite becoming synonymous to cryptocurrencies, bitcoin has not really changed much. The classic protocols governing the bitcoin network are still the same. Although, there is very much room for scalability, bitcoin seems to be shying away from some very significant network updates. It has even suspended the much awaited Segwit2x upgrade.

This has created a number for issues for the ever growing number of bitcoin users. The most prominent being the delayed confirmation times. It takes ten minutes on average for a transaction to confirm on the bitcoin network. And the transaction fees are always getting higher due to high volume transactions on the network.

There are a number of proposed solutions to rectify these issues. Like the lightening network, if implemented, this additional layer on top of the bitcoin network would effectively make transactions instantaneous. The Segwit2x upgrade on the other hand would increase the block size from the current 1 MB to 8 MB and effectively resolve the scalability issue. For the time being both of these proposed solutions are pending.

Bitcoin as a Payment System

Bitcoin as a decentralized payment system

Bitcoin is originally designed as a decentralized online payment system that would revolutionize the transfer of value over the internet. But the current state of the bitcoin network suggests that it has evolved into an asset. Thus, making it less and less reliable as an online payment system.

The price volatility of bitcoin is also baring it from becoming an effective payment transfer mechanism. Bitcoin as a trading asset has gained much popularity, diverging it from its original usage as a payment system.

Litecoin is Fresh

Bicoin vs Litecoin - Litecoin logo

Litecoin was created by Charlie Lee in order to create a better version of the bitcoin network. Unlike bitcoin, litecoin’s total supply is not capped at 21 million, instead the total supply of litecoin is capped at 81 million litecoins.

Compared to bitcoin, litecoin is a very fast network. Its confirmation time is just 2.5 minutes. The transaction fees are also very low making it a better alternative to bitcoin. Litecoin uses a different encryption algorithm that makes it comparatively easier to mine than bitcoin.

Bitcoin vs Litecoin

Looking at the current status of both the decentralized cryptocurrency networks, litecoin seems a better online payment option. But, it is not a final verdict. Looking at the current state of bitcoin vs litecoin, it can be inferred that once the classic bitcoin is scaled, bitcoin may just turn out to be the better option. It largely depends upon the wider integration of the lightening network and the status of the Segwit2x upgrade.