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Litecoin vs. Bitcoin vs. Dagcoin—How they work?

Litecoin vs. Bitcoin vs. Dagcoin—How they work?

What is Litecoin?

Litecoin is an online based peer-to-peer currency. Litecoin enables its users to make borderless instant transactions to anyone, at any time, all over the world costing little to nothing in charges. Litecoin has the status of being an open source global payment system that is completely decentralized with no central authorities; this means it is free of censorship and accessible to every individual. Litecoin uses mathematical methods and formulas in securing their network and empowering individuals in the control of their finances. Perhaps, one of the coolest features of the litecoin is the speed with which transactions are confirmed and an overall improved staging efficiency.

How does Litecoin work?

Currencies issued by the government are usually more trusted by society to issue money and carry out a transaction. But, like every other cryptocurrency in circulation, the litecoin is not granted by any government, and unlike the regular currency, Litecoin is not regulated by any federal reserve neither are they printed or engraved. Litecoins are made through a process known as mining.

The litecoin network generates a block four times faster than the bitcoin network, i.e., every 2.5 minutes. Every block undergoes verification by a software responsible for mining, and this is visible to any miner who is interested in seeing the block. Once a miner verifies a block, the next block enters the chain, and so the cycle continues.

Litecoin supplies are limited to only eighty-four (84) million and not an extra one is (will) be added to the eighty-four (84) million that is (will) be in circulation; this is to keep the litecoin valuable as over distribution makes money lose its value.

There is a fifty (50) litecoin reward for the miner who first successfully verifies a block. Over time, the compensation for such tasks gets reduced. In the last quarter of 2015, the number of LTCs awarded was halved, and this will continue until the eighty-fourth (84th) million litecoin is mined. Interesting, Litecoin can be mined using ordinary computers.

While litecoin is yet to be universally accepted, it is, however,r a valid legal tender for valuable transaction amongst people who make use of the litecoin system,  and they are about 100,000 users of the litecoin system.

Scamming the litecoin system is technically impossible as every scam can be immediately and easily detected by other miners, this makes it relatively safe.

Ps: a block is a ledger entry of recent litecoin transactions throughout the world.

What is Bitcoin?

Bitcoin is a decentralized network that uses peer-to-peer technology for transactions.  Any bank or central authority do not control Bitcoin. All transactions and bitcoin distribution are managed solely by the bitcoin network. The bitcoin network is an open sourced one where everyone can participate with no one controlling or owning the bitcoin system. It is the largest cryptocurrency network as at this moment. The network has the advantage of a quick worldwide peer-to-peer transaction and low processing cost. You are in charge of your bitcoin wallet, and this makes transacting value from person to person easy. However, you will also have to be responsible for the security of your wallets just the same way you are responsible for your physical wallet but, the bitcoin network provides a high level of protection if you can use it correctly.

How does bitcoin work?

A new user can get registered on the Bitcoin network even with limited knowledge on its technicalities. Bitcoin wallet can be installed on your computer or mobile phone, once installed, it will generate the users first Bitcoin address, and more addresses can be created whenever a user needs one. Bitcoin addresses can be disclosed to friends and business partners to enable them to carry out peer-to-peer transactions.

Bitcoin wallets keep a secret data, known as a private key; this is used to sign transactions and, it provides mathematical proof that bitcoins come from the owner of a particular wallet. A user’s signature is necessary to prevent alteration of the transaction by anybody, once bitcoins has been issued. All transactions are broadcast to the bitcoin network and are confirmed within 10-20 minutes, through a process called mining.

All confirmed bitcoin transactions are included in the blockchain shared public ledger on which the entire Bitcoin network relies. The blockchain allows Bitcoin wallets to calculate spendable balance so, new transactions can be verified, ensuring the spender owns them. The integrity and the chronological order of the blockchain are secured with cryptography.

What is Dagcoin?

Dagcoin is an open source cryptocurrency with no limitations on who accesses or operates an account with it. Dagcoin has a fixed transaction cost of 0.0005 on all transactions, no matter the price, with no hidden charges. Dagcoin transactions are typically confirmed in few seconds, unlike regular transactions that take several hours or even days. Dagcoins enables you the freedom to your wallet; you are the only person who can access your wallet with no other person having the power to freeze and limit your account. Dagcoin has a nearly 200 000 users, worldwide and it has government licenses for crypto, it also adheres strictly to the laws of KYC and AML in creating a more financially secure environment with a considerably reduced rate of illegal or criminal transactions.

How does Dagcoin work?

The dagcoin platform does not use the conventional blockchain technology other cryptocurrencies use in data storage; it uses a Directed Acyclic Graph (DAG) system in data storage and organization; this technology allows for users to secure one another’s data by referencing earlier data units created by other users. The DAG system also takes off the scalability its encountered on blockchains. Dagcoin is about 300 times faster than bitcoin and has cheaper transactional cost. Using dagcoins, users can earn coins through educational programs. The Dagcoin network has DAG corporations as educational partners, and users can be rewards with coins for every completed course. Cool, yea?

Using dagcoins are very easy requiring little to no prior experience on the use of cryptocurrencies. Dagcoin wallets can be downloaded on your mobile devices and coins sent and received too.

Litecoin, bitcoin, and dagcoins are a great way to get started on the crypto market. However, like banks, some cryptocurrencies offer better services than the others, and on this list, bitcoin has the advantage of being the oldest, most valuable, and generally more acceptable. However, litecoin and dagcoins are great places to break into the crypto market because they are relatively newer and easier to get. In a few years, dagcoins and litecoin will be household names just like bitcoin.

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