The rival between Litecoin (LTC) and Stellar (XLM) is always downplayed, largely because Stellar is always compared to Ripple and Litecoin to bitcoin and bitcoin cash. But make no mistake, the two are in direct competition.
Charlie Lee, founder of Litecoin is known for occasionally taking a jab at Stellar. Most recently, when Stellar passed Litecoin on market cap. On that occasion, Charlie tweeted out a backhanded congratulation message mentioning that he did not believe that it deserved the market cap as it is “printed”.
It is almost certain that the two’s future is certain, their coins are doing phenomenally well and the projects are equally phenomenal. But what sets the two apart and which is the best of the two?
Litecoin (LTC); “The Silver To Bitcoin’s Gold,”
Like Bitcoin, Litecoin was created to be a peer-to-peer Internet currency facilitating payments across the globe with near-zero cost and instant speed. The coin is based on bitcoin’s code but where bitcoin fails in terms of scale, speed and cost, Litecoin has improved it. Most notably is the mining algorithm where Litecoin can be mined using ordinary PCs, unlike bitcoin which requires professional hardware.
Litecoin has also improved on transaction speed where it only takes 2.5 minutes while bitcoin takes 10 minutes. Litecoin although it has its own unique features, is one of other hundreds of cryptocurrencies looking to become the base value of trade and replacing fiat. However, its edge over the rest is that while many people thought the best cryptocurrency for replacing fiat is bitcoin, its shortcomings have proven to be too big to ignore. So, what comes close to it but has made improvements to its shortcomings? Litecoin.
For the past several years the coin has been dramatically rising on the crypto market and its adoption has seen a massive boost. The project has also forged several unique and crucial partnership deals that have both exposed it to a larger market and helped it in the development of its network.
In the coming years, we could just see Litecoin become better than bitcoin.
Stellar (XLM); “The Future Of Banking”
According to Stellar’s website, Stellar is a “free, open-source network that lets anyone build low-cost financial products for their community.” If you are familiar with Ripple, this is the same concept. In fact, Stellar was created in 2014 as a fork of Ripple. Stellar aims at using the benefits of blockchain technology to improve the financial ecosystem.
Where Stellar really differs from Litecoin is that it believes rather than have a single cryptocurrency that is used to base value in a trade, why not have users transmit fiat-equivalent credit over its blockchain. This model integrates existing financial institutions as they provide the credit. They act as the bridge between fiat and Stellar’s network.
Because of its involvement with traditional financial institutions, some say that Stellar isn’t truly decentralized. It is also largely criticized as it seems to largely benefit financial institutions, who leverage its blockchain to speed up payment, reduce transaction cost and reach out across the globe.
The results of the network are, however, undeniable as it boasts of real-time settlement in 2-5 seconds which is significantly better than Litecoin’s 2.5 minutes.
Stellar’s integration of existing financial institutions increases its chances of being adopted. While most cryptocurrencies like Litecoin are looking to defy traditional financial systems, Stellar is looking to bring together the old and the new to build something that works for everyone. It is the same reason that the project has received partnership deals with giant companies like IBM, KlickEx, Deloitte, Stripe, and ICICI Bank.
Although the debate of whether Stellar is truly decentralized might never get settled, there’s no denying that the project shows much promise and is set for mass adoption by both users and financial institutions soon.