When trying to understand cryptocurrencies, one sometimes tends to wonder if they truly are that good at being “currencies.” So far, we've learned that cryptocurrencies can either be too volatile in price, too expensive to process and transact or become too valuable and scarce. Today, we're going to try and answer that question by comparing two cryptocurrencies, Vertcoin vs Litecoin, and see how they stack up at being good ‘currencies.'
After all, that is the raison d'être (primary reason of existence) for these two cryptocurrency tokens to have been designed solely for the purposes of being good day-to-day currencies. We're talking about actually being good alternatives to replace regular paper dollars for things like paying for coffee, groceries, or going shopping. And in fact, both Vertcoin and Litecoin are much more similar than they might seem.
Sure, one of them – Litecoin – is far more popular, while the other has been relatively unknown. But at its core, both are open-sourced, decentralized blockchains with 2.5-minute block timing and a total supply token supply limit of 84 million. Both also pose themselves as a much more usable form of currency compared to Bitcoin's digital gold' status. So, read along our Vertcoin vs Litecoin comparison to see one comes out on top.
Vertcoin VS Litecoin Comparison Table
|Crypto Token: VTC||Crypto Token: LTC|
|Token Market Capitalization: $47,390,301||Token Market Capitalization: $13,550,830,794|
|Market Cap Rating: 404||Market Cap Rating: 8|
|Total Token Supply:84,000,000 VTC||Total Token Supply:84,000,000 LTC|
|Uses/Applications:Peer-to-peer exchange of currency.||Uses/Applications: Day-to-day currency, medium for payments and transactions, or store of value. |
Summarising our Vertcoin vs Litecoin comparison, we can see that the key difference is how both these different blockchains – and their respective cryptocurrency tokens – have already seen adoption. Both have the visions of becoming a usable currency for everyday applications, such as using it for payments or for sending monies across borders with ease and without having to go through lengthy processing or high fees.
Both Vertcoin and Litecoin also share great similarities, in that they've both made modifications from the Bitcoin blockchain. But while Litecoin has already accomplished its goal of becoming an alternative currency for mainstream use, Vertcoin continues to lag behind and risks slipping into nothingness, as its cryptocurrency tokens are only every used within their own community.
What Is Vertcoin?
Compared to the well-known Litecoin, not much is known about Vertcoin. It was founded in 2014 as an open-source and decentralized blockchain. As we'll learn later on, Vertcoin is similar to Litecoin in that the core programming on its blockchain is based on Bitcoin. It has since made adjustments to how the network is secured, with a thorough focus on maintaining true decentralization.
This is done by having modified Bitcoin's mining algorithm. Vertcoin uses Verthash, which is a mining algorithm similar to the Ethereum blockchain's Ethash. The advantages are that Vertcoin's mining can be done much easier on lower-end hardware and is more resistant against ASICs or Application-Specific Integrated Circuit. ASICs are expensive and have only been used by large mining operations.
One concern felt by many in the blockchain community is the increasing centralization of mining power towards these massive mining farms and the entities that control them. As such, Vertcoin wants to better distribute and decentralized mining power, along with the share of rewards and governance on its network. With that commitment in mind, Vertcoin regards itself as ‘the people's coin.'
What Are Vertcoin's VTC Tokens?
VTC is the native currency of the Vertcoin blockchain network. Primarily, VTC tokens are used as a peer-to-peer currency to quickly and cheaply exchange stores of value between its users. It is also the reward that miners attain for powering, securing, and validating transactions on its network. As we've mentioned earlier, Vertcoin's mining algorithm has been tuned to be more resistant against ASICs.
Miners can easily mine for VTC and contribute mining power to Vertcoin's Proof-of-Work mechanism using their computers and their graphics processing units (GPUs). We will learn more of this further down our Vertcoin vs. Litecoin comparison, but there are a lot of parallels between VTC and Litecoin's LTC tokens. Just like Litecoin, Vertcoin has a block timing of 2.5 minutes and the same maximum token supply cap of 84 million VTC.
However, Vertcoin is far less known within the blockchain and cryptocurrency space. At the time of writing this Vertcoin vs Litecoin comparison, VTC tokens are changing hands at a price of $0.806739. Its current circulating supply of 58,743,072 VTC gives it a market capitalization value of $47,390,301, making Vertcoin the 404th-largest cryptocurrency, or around 390th-largest depending on the market and price volatility.
See Also: Where to buy Vertcoin
What Are The Features of Vertcoin?
Admittedly, and once again, it's fairly hard to learn or find out anything about Vertcoin. Although they have an active community on messaging platforms, there doesn't appear to be an in-depth whitepaper to explain much of Vertcoin's core technology. We do know that much of its blockchain code is similar to Bitcoin, with changes primarily in the mining algorithm and how it's been implemented.
Because of Vertcoin's near similarities to Bitcoin, the adoption of any future updates made on the Bitcoin blockchain should be done very easily. For instance, Vertcoin was among the first blockchains to have adopted the use of SegWit, thus further improving its blockchain's performance and scalability. Otherwise, the key differences and the specialties of Vertcoin lie solely in its mining algorithm.
As we've highlighted earlier, Vertcoin uses a specialised mining algorithm, known as Verthash, and is made similarly to Ethereum's Ethash. This intentionally makes mining on Vertcoin's Proof-of-Work (PoW) modeled blockchain harder for ASICs to compute. The end goal for Vertcoin is to ensure true decentralization of its blockchain network by ensuring that mining power does not become centralized.
Its mining algorithm makes the process of mining Vertcoin's VTC tokens far easier and more equitable, especially for more casual users. This is made evident by the creation of their ‘one-click mining software, designed to be easy to use and with low hardware requirements in mind. Vertcoin also implements a mining difficulty adjustment for every block, instead of Bitcoin's method of adjusting difficulty every 2 or so weeks.
However, this method for decentralization has left Vertcoin exposed more to malicious actors. The Vertcoin blockchain suffered 2 separate 51% chain attacks within a year. The first happened in late 2018, which had cost around $100,000 worth of losses to the community. But just as Vertcoin's developers were implementing Lyra2REv3 to replace its PoW algorithm to prevent another incursion, a second 51% chain attack happened in late 2019.
What Are Vertcoin's Future Roadmap Updates?
Vertcoin does not have a controlling entity and is governed entirely by its community. At the time of writing this Vertcoin vs Litecoin comparison, there has not been a proper roadmap published by the community. However, a set of goals have been outlined for its future, including setting up a governing foundation for Vertcoin and including the listing of VTC on major exchanges. We can only hope that more proactive visions are laid out for the future.
We can now end the first half of our Vertcoin vs Litecoin comparison and summarize the Vertcoin project as a whole. Presently, there's not a great deal of clarity on what its plans are for the future beyond its currently very active, supportive, and passionate community. There's also very little news on Vertcoin and not a lot of chatter beyond its own sphere. But that doesn't mean that Vertcoin is completely dead in the water.
Now, more than ever, we've seen how disproportionate mining control has been with major blockchains. Moreover, they are not environmentally sustainable, and they have strayed from the values of decentralization that led to the creation of cryptocurrencies in the first place. As such, it's projected that Vertcoin serves as a reminder that there are very promising alternatives out there that deserve a second chance.
Vertcoin Pros & Cons
What Is Litecoin?
Litecoin was founded in 2011 by former Google staffer Charlie Lee. Litecoin's blockchain is open source and wholly decentralized. It was originally made using a modified version of the Bitcoin blockchain to add improvements and changes to make it a more usable day-to-day currency. As the name suggests, Litecoin is a ‘lite' version of Bitcoin, and for a long time, has been regarded as the silver to Bitcoin's gold.
It included some key modifications to the underlying Bitcoin code, such as making Litecoin much easier to mine. As mentioned earlier in our Vertcoin vs Litecoin comparison guide, other key statistics are that Litecoin has 4-times the token supply compared to Bitcoin (84,000,000 vs. 21,000,000) and with 4-times faster block timing (2.5 minutes vs 10 minutes).
Litecoin has since shared some of the features and updates of Bitcoin, such as the integration of SegWit and the Lightning Network. In fact, Litecoin was among the first blockchains to have adopted SegWit. Since then, the Litecoin Foundation has maintained a proactive approach to turn its blockchain into a testbed for future changes and protocol updates that have yet to come to Bitcoin or other blockchains.
What Are Litecoin's LTC Tokens?
The native currency of Litecoin is the LTC token. The application of LTC is similar to that of Bitcoin's BTC, whereby LTC is used as a store of value, as a currency used for payments or transactions, and also as a reward for miners. Litecoin's LTC cryptocurrency tokens are designed to best work as a payments currency, one that is permission-less to use and integrate while also charging far lower fees.
Litecoin's LTC tokens are among the most widely used to date as a form of currency, owing to their ease of being adopted into merchants' point-of-sale systems. This is also thanks to the many dedicated cryptocurrency payments solutions and providers that have integrated Litecoin. As of January 2021, LTC tokens are an accepted means of payment with over 2,000 merchants and stores worldwide. Recently, PayPal has added support for LTC tokens.
At the time of writing this Vertcoin vs Litecoin comparison, LTC tokens are trading at a price of $203.80. Combined with its circulating supply of 66,490,567 LTC, this values Litecoin's market capitalization at $13,550,830,794. This makes Litecoin the 8th-largest cryptocurrency. As mentioned previously, Litecoin has a total supply cap of 84,000,000 LTC and even follows Bitcoin's halving pattern every 4 years (roughly every 840,000 blocks).
What Are Litecoin's Features?
Now that we've understood what Litecoin is and more about its LTC tokens, it's a good time to learn more about what makes Litecoin special. For this, we shall be taking a more comprehensive view of its feature sets and distinct advantages before we can conclude our Vertcoin vs Litecoin comparison.
1. Proof-of-Work Consensus Model
Like Bitcoin, Litecoin has adopted a Proof-of-Work (PoW) consensus algorithm, which is based on mining to power and secure the blockchain network. In return, miners receive LTC tokens as a reward and to incentivize further contributions of mining power. As mentioned earlier, the rewards will decrease as per the pre-programmed halving model that happens every 4 years, or roughly every 840,000 blocks.
But while Bitcoin uses a SHA-256 cryptographic hashing algorithm for its mining, Litecoin uses Scrypt. The aim of this transition is to make Litecoin mining more memory intensive and could thus be done using more home-grown hardware and regular computers instead of more expensive ASICs. This was meant to make Litecoin mining more efficient and decentralized, but there has since been specialized ASICs made for LTC mining.
2. Segregated Witness (SegWit) for More Efficient Processing and Transactions
Litecoin was among the first 5 blockchains to have openly adopted the SegWit protocol update before Bitcoin. Essentially, SegWit's purpose is to make blockchain transactions far more efficient and scalable. This is done by separating (or segregating) witness signatures from data that pertains to transactions. Oftentimes, witness signatures take up around or more than 50% of the capacity for each block.
Separating the witness signatures from the block allows a blockchain to effectively increase the number of transactions that can be stored and processed per block using the SegWit protocol. Consequently, this means that a blockchain network can increase its processing capacity and can complete more transactions per second. Overall, the implementation of SegWit allows for a blockchain to be far more scalable.
This has several benefits for a blockchain network's functionality. Firstly, the SegWit protocol results in overall cheaper transaction fees for blockchains. This comes down to the number of transactions that can be stored within a block. As SegWit makes room for more transactions to be stored inside of a single block, the block producer won't need to process as many blocks for a set number of transactions.
Secondly, SegWit makes for a more secure blockchain network. Previously, witness signatures can be altered before a block can be validated by miners while also affecting the transaction ID. This can create an issue with the book-keeping and ensuring that all network participants send and receive their tokens as per the amount and addresses. SegWit solves this by allowing the signatures to be changed without altering the transaction parameters.
3. Lightning Network for Fast and Cheap Payments
In further cementing Litecoin's ambitions to become a more usable currency for regular payments, they have also adopted the Lightning Network onto their blockchain. The Lightning Network is a second-layer solution built to augment the Litecoin blockchain's versatility. It does this by enabling nearly instantaneous payments and with a low cost between users and merchants.
The Lightning Network works through a specialized ‘payment channel' between a Litecoin holder and the merchant. If a customer wishes to transact (in other words, to pay) at a store, a payments channel will open between the two parties, secured end-to-end. None of the transaction data from this channel are recorded onto the blockchain until both parties have completed the transaction and have then closed the payment channel.
This allows for payments to be done independently of a blockchain until after it the transaction is complete. The advantages are two-fold. Firstly, transactions can be done nearly instantly, as both the customer and the merchant don't have to wait for network confirmations to be complete. Secondly, both parties will only need to pay Litecoin miners once the payment channel is closed.
Overall, the Lightning Network's implementation has made Litecoin's blockchain far more convenient, usable, and efficient for mainstream applications. It allows for transactions to be done securely, quickly, and cheaply compared to some other blockchains (and their respective cryptocurrencies) or regular methods. They tested this by transferring 0.00000001 LTC from Zurich to San Francisco, taking just under 1 second to complete.
4. MimbleWimble for Added Security and Privacy
Litecoin has very recently implemented the MimbleWimble protocol update to their blockchain. MimbleWimble works as a data storage and transaction system that increases fungibility and privacy while also helping to aid in better scalability. MimbleWimble is based on a UTXO model, but unlike its traditional application, it has no addresses, and the private keys are further encrypted to be known only by the account holder.
When transacting Litecoin using MimbleWimble, both the sender and receiver will need to establish a dedicated channel for the transaction. Both the sender and receiver will respectively sign off the transaction and all its parameters before being sent to the blockchain's mining nodes. This allows all transaction data to be completely anonymous, making for fully private and confidential transactions.
What Are Litecoin's Future Roadmap Updates?
The most recent update that has been added to the Litecoin blockchain was the implementation of MimbleWimble's security and privacy features. Next, we shall be taking a closer for some of the future development updates for the Litecoin blockchain and its LTC cryptocurrency tokens before we can round off our Vertcoin vs Litecoin comparison. Presently, there doesn't appear to be a fixed roadmap set by the Litecoin Foundation.
The most immediate blockchain network improvements are solely to help increase Litecoin's scalability and versatility in processing transactions more efficiently. The most immediate upgrades are the adoption of Schnorr signatures and Taproot onto the Litecoin blockchain. Both are designed to improve the efficiency of transactions on the network, thus further adding to future scalability while also creating an added layer for privacy.
However, it does appear that the addition of these upgrades to the Litecoin blockchain could potentially expose it to greater regulatory scrutiny, owing to the ability to make anonymous and seemingly untraceable transactions. Another thing to look out for in Litecoin's future is its next halving cycle. The first halving for its LTC tokens happened in August 2015, and once again in August 2019. The next halving is scheduled to arrive sometime in August 2023.
We can now safely conclude the Litecoin portion of our Vertcoin vs Litecoin comparison. It's easy to get excited about Litecoin's potential growth and its ability to help push cryptocurrencies into the mainstream, especially in using it as a viable alternative to fiat currencies stablecoins. Litecoin has shown a way forward where transactions can be made quickly, seamlessly, privately, securely, and affordably.
As such, Litecoin's LTC tokens have seen a surge of interest as of late, as more people see the uniqueness of its underlying system. This is compounded by the limited scalability of many major blockchains today, struggling under massive network congestion and sky-high fees. It's clear now that alternative chains such as Litecoin are not only here to stay, but they are crucial to the survival and future of real-world blockchain adoption by the masses.
Litecoin Pros & Cons
Vertcoin VS Litecoin: Conclusion
Finally, we can conclude our Vertcoin vs Litecoin battle and see which one comes out on top. If you've read through our comparison here, then you can very easily see why Litecoin would easily deserve the top spot. Indeed, that is our choice as well, and very deserving owing to Litecoin's strong merits. Its future remains limited for the time being, as its blockchain's scalability and functionality remain more limited than some others.
However, it has thus far fulfilled its mission to be a good day-to-day currency, having already been widely adopted as a means of payment, thanks to its speedy transaction times and low fees. Vertcoin, on the other hand, had similar ambitions, but it has yet to accomplish that goal, and it currently remains a currency only within its own diaspora. Combined with its lack of clarity, we won't know what's to come for the future of Vertcoin.
Our Vertcoin vs Litecoin comparison shows that a future where economies will be underpinned by a decentralized monetary system is much closer than it seems. Already, cryptocurrencies have been growing in adoption. Litecoin has shown us what that future looks like, and it's safe to say we're very excited. But let us also sow the seeds of hope for Vertcoin and what it could potentially bring to the table someday.