Ethereum Vs. Litecoin: A Complete Comparison

There are cryptocurrencies that have been developed as alternatives to the first one, Bitcoin. Among such cryptos are Ethereum and Litecoin, which have become attractive options for investors. But which one is better? In this article, we will look deeper into this question and tell you about the main differences between Ethereum and Litecoin.

What Is Ethereum (ETH)?

Ethereum is a blockchain designed to better scale and optimize transactions. It operates on smart contracts that automate processes due to recorded execution conditions.

Another important function of the Ethereum ecosystem is serving decentralized applications (dApps). Due to their large number within the blockchain, it has been spread to both DeFi and NFT spheres. It has attracted many users, hence the high investment in the network's own ETH coin as well. Of course, such support provides the network with a high level of security, which is one of the most essential factors in choosing the network to operate.

What Is Litecoin (LTC)?

Litecoin is a blockchain network designed for making peer-to-peer transactions. Its LTC coin was one of the first to emerge after Bitcoin, which is why it is sometimes called the digital "silver" just like the digital "gold" of BTC. The Litecoin network uses the same code base as Bitcoin does, nevertheless, there are other components that improve its weaknesses.

Transactions on the Litecoin network have faster speeds and lower fees, making them in demand among traders. Moreover, LTC is low volatile, so it is a great option for those who want to invest for the long term. Due to these benefits, Litecoin is not inferior in trading volume terms to many cryptocurrencies on the market.

Ethereum Vs. Litecoin: Key Differences

As we have already mentioned, both Ethereum and Litecoin are enhanced versions of Bitcoin. It is seen in the networks’ functionality and features. Let's take a detailed look at what the main differences between the two ecosystems are.

Purpose

Ethereum appeared in 2015 and was created as a programmable blockchain that stores value in the ETH token. The role of tokens is oriented primarily for the execution of smart contracts and complex transaction payment in case of success. On the other hand, Litecoin was developed in 2011 as a token for everyday transactions, as its price conditions make it suitable and convenient for that.

Consensus Mechanism

These two blockchains run on different mechanisms. Ethereum started with Proof-of-Work (PoW), which involves miners developing new blocks. But the mechanism limits the network's scalability, and over time Ethereum moved to Proof-of-Stake (PoS), which speeds up and optimizes transactions. Litecoin remains on the same mechanism as BTC, which is PoW.

Transaction Speed

Ethereum can process 20-30 transactions per second (TPS), with a blocking time of 13 seconds. However, experts believe that the transition to the PoS mechanism should, over time, increase the number of TPS on Ethereum to thousands. Litecoin, on the other hand, is able to process about 56 TPS but is inferior to Ethereum in blocking time: for LTC, it is 2 minutes and 20 seconds. It is worth remembering that the time can vary depending on the network congestion.

Fees

Network transaction fees can also vary depending on the network overload. Ethereum charges a gas fee, with an average of 2 gwei, or 0.17 USD. Speaking about Litecoin, it is more favorable than Ethereum, as the fees for transactions here vary only from 0.01 to 0.1 USD.

Ethereum Vs. Litecoin: A Head-To-Head Comparison

Now you know the main differences between the Ethereum and Litecoin networks. We suggest you take one more look at this information as well as explore other details that may be useful to you during the investment process.

Crypto	Coin issue	Mechanizm	Goal	Price	Speed	Scalability
Ethereum (ETH)	Coin issue No maximum emission limit	Mechanizm Proof-of-Stake (PoS)	Goal A reliable platform for dApps with high security	Price Approximately 2,650 USD	Speed 13 seconds to be confirmed	Scalability 20-30 TPS
Litecoin (LTC)	Coin issue 84 million coins	Mechanizm Proof-of-Work (PoW)	Goal A convenient platform for everyday transactions	Price Approximately 60 USD	Speed 2 minutes 20 seconds (140 seconds) to be confirmed	Scalability 56 TPS

Ethereum Vs. Litecoin: Which Is Better To Buy?

Ethereum and Litecoin are both perspectives for investment, but they have significant differences in some aspects that affect the final decision. For example, Ethereum is a larger scale project compared to Litecoin, as it involves more investing potential, and has the ability to run various dApps. It is also predicted that the scalability of the network may increase over time, which optimizes transactions.

At the same time, Litecoin seems to be a better investment compared to Ethereum, as it was originally created to preserve value. Moreover, LTC coins are more convenient for everyday transactions, and as the world gradually moves towards digital currencies, this option is becoming the most successful.

Both Ethereum and Litecoin have good growth opportunities and are good investing options. You should choose a particular one based only on your priorities and preferences. We hope this article was helpful, and if you still have questions or want to share your point of view, leave it in the comments below!