From Cryptocoinnews | Today, I would like to discuss some of the basic differences between Bitcoin and Litecoin. I’m sure most of you already know them, but I figured this article could be an interesting read for everyone. This is part I of the article, expect part II around the weekend.
Bitcoin is built around a double round of the SHA-256 hash function in it’s proof-of-work algorithm.. This means that it’s an algorithm that transforms a big block of data into smaller locks, which can then be verified to make sure they match the original block’s data. This is what we know as “mining shares”. One of those algorithms is the block’s “header”, so to speak, which leads us to solving the actual block on the network.
So far, this is basic knowledge for every miner out there. You solve shares, hope to get a block, and get paid. Good. One small thing to add about the SHA-256 hash function, is that it was originally developed by the military, thus requiring a lot of power and effort to successfully solve the hashes. This is what we know as “increase in difficulty” for all cryptocurrencies out there. However, not all of them are based on SHA-256. Let’s take a look at what Litecoin IS based on.
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