“Litecoin mining”, or “Litecoin mining” in Turkish, is the processing of a transaction block into the Litecoin blockchain. Litecoin (LTC) is one of the first altcoins created.
The Litecoin network was launched on October 13, 2011. LTC is still one of the largest cryptocurrencies in terms of market cap since it was first created. LTC aims to provide an alternative to Bitcoin by making changes to the original Bitcoin Protocol. It is technically very similar to Bitcoin.
Processing Litecoin requires adding transaction information to blocks that are ultimately added to the blockchain. The blockchain serves as a record of all holders of a particular Litecoin. Adjustments in the blockchain are made only by miners with very powerful computer hardware who can solve mathematical problems with software.
Setting up a Litecoin mining business requires substantial investment in hardware first. In the early days of Litecoin, miners could reach a solution by purchasing a single graphics processing unit (GPU). However, due to increasing competition and producing less and less Litecoin, Litecoin mining has turned into an area that requires much more investment.
Miners who purchase the necessary hardware need to set up an e-wallet where Litecoins can be deposited. At this point, miners can download a software program to handle the mining operation. The software runs a script that activates the Litecoin mining program. Once executed, the program tries to process the blocks, but often does not show its speed. In order to mine Litecoin, much more GPUs need to be purchased.
The cost of GPUs continued to rise due to the high demand for the hardware, eventually leading to the development of much more specialized and efficient hardware called application-specific integrated circuits (ASICs).
How Litecoin Works
Thanks to the blockchain, transaction details are stored in blocks and each block is linked by a chain. The information chain is located in Litecoin’s transaction ledger.
Blockchain is an open and distributed ledger that records transactions in an efficient, permanent and verifiable way. The ledger itself is programmed to perform transactions. On the other hand, encryption techniques are used to keep the information in the blockchain network secure, and the user information is hidden outside the address. Cryptocurrencies are also issued by users to make a profit. Initially, the coin, which has 25 LTC block rewards, halves every 4 years, and when it reaches 84 million, the extraction stops completely.
