Litecoin Vs Polkadot
Litecoin vs Polkadot is an interesting discussion regarding two major players in the ever-growing cryptocurrency market. Many traders, crypto enthusiasts and blockchain investors get involved with cryptocurrencies like these for the volatility, decentralisation and development opportunities they present. Below, we detail the main points in the comparison of Litecoin vs Polkadot, LTC vs DOT, for traders, alongside a list of the top brokers and exchanges facilitating both tokens.
What Is Litecoin?
Litecoin is a decentralised digital currency that was created with the aim of allowing users to avoid central authorities like banks and governments in order to gain access to capital. By this, LTC could be used by people to purchase everyday goods and services, such as coffee and tea in a café. Litecoin was created in 2011 by former Google employee Charlie Lee as a younger sibling of Bitcoin but with a much lower barrier to entry for mining and, since its launch, it has seen significant growth in both value and trade volume to become one the most popular cryptos on the market. The network has adopted features such as Segregated Witness to help increase block validation processes to reduce orphan blocks and the Lightning Network, which provides an alternative system where small transfers for daily purchases can take place in just a few seconds.
What Is Polkadot?
Polkadot is a unique multi-blockchain network that was founded in 2016 by Dr. Gavin Wood, who also worked on the Ethereum network. The first ICO of the crypto DOT was in 2017 and subsequent offerings took place in 2019 and 2020, showing that this is still a fairly young cryptocurrency in the market.
Across many cryptocurrency networks, there is currently a debate as to whether one of decentralisation, security or speed must be conceded in order to achieve the other two. Polkadot aims to provide a solution to this problem through its nominated proof of stake (NPoS) model and its two blockchain systems. The main blockchain, the Relay chain, is responsible for the coordination of the entire system via the parachains, governing the consensus network and the cross-chain coordination and integration.
The parachains are customisable networks created by traders and the Polkadot userbase made to suit a particular purpose. What makes them different from other similar models such as Ethereum and Cosmos is that each parachain uses the Polkadot Relay chain security and consensus system, rather than having to create its own. The consensus governing and separate blockchains for transaction processing and validation mean the network can stay decentralised, secure and fast. This, in addition to the system of bridges currently under construction that will allow interactions with other crypto networks, makes Polkadot a very attractive blockchain network.
Litecoin Vs Polkadot Similarities
Access to either Litecoin vs Polkadot should not be an issue as both are popular cryptos with large market capitalisations, so most major exchanges will allow users to make trades and transactions.
There is a wide range of cryptocurrency storage methods with hot wallets like desktop and mobile wallets as well as cold wallets, for example, the Ledger Nano range or the Trezor Model T. These options are available to you whether you wish to store Litecoin vs Polkadot.
The methods available to traders of Litecoin vs Polkadot are the same. The most common method is through spot trading, where traders purchase an asset at a certain price and then sell it again later on once the value of the asset has increased to pocket the difference. Leveraged trading opportunities, such as CFDs, are less common given the regulatory restrictions in place around the world, though some major brokers and exchanges will still offer them.
As with all cryptocurrencies, there are frequently large price swings in the valuation of Litecoin vs Polkadot that provide traders with ample opportunities to make profits. For example, both LTC and DOT regularly see fluctuations of over 30% of their values.
Litecoin Vs Polkadot Differences
The difference in average transaction fees for Litecoin vs Polkadot can sometimes be as great as a factor of 10. In 2021, Litecoin transaction fees averaged between $0.01 and $0.1. On the other hand, Polkadot transaction fees averaged around 0.015 DOT, equating to $0.23 for the lowest value of 2021 and $0.53 for the greatest value. The exact DOT fees will vary because they are calculated using three parameters, including one that the trader decides themselves. Firstly, there is the ‘length fee’, which is equal to a constant per-byte fee multiplied by the transaction size in bytes. Secondly, there is a weight fee that accounts for the time taken to process the transaction. Finally, there is an optional tip that is used to speed up the transaction by giving it a higher priority.
The total number of transactions that can be processed per second by Litecoin vs Polkadot is a significant amount. Litecoin can only handle 56 transactions per second, whereas 1,000 transactions can take place per second on the Polkadot network – almost 40 times more than LTC.
While both Litecoin vs Polkadot have large market caps and are both within the top 15 most valuable cryptos, there is a roughly $20 billion gap in their current valuation. Polkadot tends to be safely within the top ten cryptocurrencies with at least $30 billion, whereas Litecoin regularly sits between 10th and 15th at around $10 billion.
The two hashing algorithms that are used to determine the network rules of Litecoin vs Polkadot are very distinct models. Litecoin’s proof of work algorithm, called Scrypt, is a high energy demand system that requires users to expend a large degree of effort in order to be trusted to verify transactions and mine new blocks. Polkadot uses a modified version of proof of stake called nominated proof of stake, whereby users stake DOT in order to perform one of the four roles: validator (validate data and govern network), nominator (select the validators), collator (store blockchain history and transactional data) and fisherman (monitor and police the network).
Litecoin vs Polkadot have different models for new block generation that are linked to their hashing algorithms. Litecoin has users generally must create a mining rig with large RAM and hash power to solve mathematical puzzles and find correct hashes for new blocks. New blocks are mined once every 2.5 minutes with successful miners rewarded with 12.5 LTC. On Polkadot’s network, the elected validators produce new blocks once every six seconds using the Blind Assignment of Block Extension (BABE) mechanism.
The maximum supply of LTC is 84 million tokens, whereas DOT is unlimited.
Pros Of Litecoin For Traders
- Low transaction fees
- Opportunity for earning Litecoin with a mining rig
- Potential for wider use for purchasing goods and services in day-to-day life
Pros Of Polkadot For Traders
- Strong scalability
- Large market capitalisation means high liquidity
- Already over a billion coins in circulation with no future maximum limit
- Access to user-created parachains to help with trading and customise the experience
Litecoin Vs Polkadot Verdict
Both Litecoin vs Polkadot present decent opportunities to make profits and payments thanks to their fast, low-cost transactions. The two blockchain networks also have plans for future growth in both the long and short terms. However, the underlying technologies of the two cryptos are quite different, presenting different levels of scalability, utility and flexibility, which may affect your decision. You should also be careful as all cryptocurrencies are very volatile, so both Litecoin vs Polkadot could cause losses during trading.
Is Litecoin Vs Polkadot A Better Investment?
If you prefer the idea of using the crypto for day-to-day purchases, then Litecoin may be better suited to you. However, if you wish to develop functions and benefit from a wider network, Polkadot could be ideal. There are many benefits and drawbacks for both Litecoin vs Polkadot and not every benefit is there for every trader, so consider what it is you are looking for.
How Do I Become A Validator On Polkadot?
There is no official application process for Polkadot validators. You simply need to purchase some DOT, create a validator node and register your interest in becoming a validator. Only once you have been elected by a nominator can you take the role of validator.
Where Can I Find More Information On Litecoin Vs Polkadot?
What Will The Price Of Litecoin Vs Polkadot Be In 2025?
Predictions for future prices of either Litecoin vs Polkadot can be easily found through Google searches. However, it is important to remember that these are only forecasts and it is impossible to perfectly predict the future of the financial markets, so take what you read with a pinch of salt.
Where Can I See Cryptocurrency Market Cap Rankings?
Websites such as CoinMarketCap or CoinRanking will show you information like the current leader board for cryptocurrencies by market cap, as well as their current price, supply and value over the last few days.