Additionally, Litecoin Cash would enhance mining capacity by re-enabling the SHA256 algorithm to attract miners that use obsolete hardware.
The team behind Litecoin Cash is unrelated to Charlie Lee and Litecoin, who criticized LCC saying that it belongs to the “Bitcoin forks trying to confuse” category. Litecoin Cash is being treated with skepticism by the community, about whether it brings real-life use cases or not.
It was hard forked at block 1,371,111 of the Litecoin blockchain and every holder would be able to claim their LCCs for free at 1:10 ratio. However, users were prompted to provide their LTC private keys, in order to claim their LCC tokens. Charlie Lee went to warn them about such a risky move and a potential scam behind it.
As Litecoin Cash’s website states, “There is no fast, cheap SHA256 coin with good difficulty adjustment. SHA256 miners have little practical choice of hash power destination, and if they do mine blocks they’re being paid in a currency with 10-minute block times. We believe we can offer an excellent SHA256 coin for general usage. We love Litecoin and wanted to give something to the brave hodler community. With everyone else too busy forking Bitcoin, we decided that the Litecoin blockchain was a perfect means of initial [sic] distribution for our coin.”
Differences and similarities between Litecoin Cash and Litecoin
Litecoin Cash has 840 million LCCs that will ever exist, compared to Litecoin’s 84 million.
Litecoin makes use of the Scrypt Proof-of-Work algorithm, which enables users to mine Litecoin by using their home PCs. Litecoin Cash, on the other hand, implements the legacy SHA256 hashes in an attempt to utilize the existing, old Bitcoin mining hardware that became defunct after new algorithms were introduced.
A key differentiating point is laying mining difficulty. While Litecoin’s mining difficulty is recalculated every 3.5 days, Litecoin Cash makes use of Dash’s DarkGravity V3 algorithm to readjust the difficulty at every block. According to Litecoin Cash’s website, “this provides more predictable block times as well as network protection from multipool hopping.”
Litecoin Cash’s block reward will be set at 1.25 LCC and will grow gradually during the first 400 blocks to reach 250 LCCs, as opposed to 25LTCs per block on Litecoin. Both Litecoin Cash and Litecoin have the same halving time.
Additionally, Litecoin Cash claims to lower Litecoin’s transaction fees by 90%.
As a Litecoin fork, Litecoin Cash preserves the 13Gb Litecoin blockchain and similar to Litecoin, Litecoin Cash will support the SegWit protocol as well as the Lightning Network upon its arrival.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.