Litecoin (LTC) and Ethereum (ETH) are some of the best tradable coins you can pick.
Both coins have strong fundamental features. They also have huge communities backing them, and they have massive market capitalization.
Given their somewhat similar origins, does one run on the other? Does LTC run on ETH?
Let’s find that out and more.
Does Litecoin Run On Ethereum?
No. Litecoin does not run on Ethereum.
Litecoin runs on its own decentralized open-source blockchain. Also, the Litecoin blockchain empowers its participants to perform transactions, with an open ledger that anyone can view and verify.
Ethereum is an ecosystem on its own. It also has its own token and its own blockchain.
Learn more: Is Litecoin Decentralized?
Is Litecoin The Same As Ethereum?
No. Litecoin is not the same as Ethereum.
Features of Litecoin
As mentioned above, Litecoin thrives on the Litecoin network to process payments in the cryptocurrency industry. It is also a store of value. LTC offers quick transactions with the lowest fees.
Litecoin uses the Proof of Work consensus mechanism to solve complex mathematical sums and produce new blocks.
It employs the Scrypt algorithm to protect the network so that a group of miners can’t take over control of the network.
Features of Ethereum
Ethereum is a decentralized medium for building smart contracts and property exchange. Examples of smart contracts built on ETH include DeFi and NFTs.
Although ETH uses the PoW mechanism to mine, there is an expected shift to Proof of Stake once they launch Ethereum 2.0.
Ethereum users pay gas fees (instead of transaction fees) to complete transactions.
What Do Litecoin And ETH Have In Common?
Here are the similarities between Litecoin and Ethereum:
Both Litecoin and Ethereum run on open-source blockchains. It makes these two cryptocurrencies accessible to both amateur and advanced users.
Compared to Bitcoin, LTC and ETH users need less energy to mine new blocks into their networks.
LTC’s scrypt algorithm ensures continued block production with less energy than BTC. For ETH, energy efficiency is expected to drastically increase with the launch of ETH 2.0.
Built to improve the functions of Bitcoin, Litecoin and Ethereum have faster block confirmation times. Right now, the two ecosystems keep transaction confirmation to under a minute, which is much faster than Bitcoin.
Where to Buy
You can find Litecoin and Ethereum tokens on the leading decentralized and centralized crypto exchanges.
LTC and ETH rely on the Proof of Work consensus mechanism to mine their blocks. However, the Ethereum development team is working on switching ETH to a Proof of Stake model which is more eco-friendly.
Learn more: Is Litecoin Eco Friendly?
What Are The Main Differences?
Here are the key differences between Litecoin and Ethereum.
While Litecoin has a limited cap of its coins at 84 million, Ethereum has no limit on its coin supply.
The primary purpose of Litecoin is to store value and function as a transactional currency. Ethereum, on the other hand, offers a myriad of uses in the real world. Some uses include;
- A platform for building smart contracts
- Creation of decentralized applications
- Transfer of property
Litecoin and Ethereum have varying token prices and market capitalization. As of this writing, 1LTC has an all-time high of $412.96. On the other hand, during its existence, ETH reached a high of $4,891.70.
Litecoin employs PoW to mine blocks to its network. Although better than Bitcoin, participants must be consistent in mining LTC to ensure continued production of Litecoin coins. Today, Ethereum uses the PoW too.
However, soon, this will change to Proof of Stake, making it different from its peer Litecoin. This mining system uses validators to control the network and rewards its user for participating.
Litecoin and Ethereum use a unique fee system. While Litecoin mimics Bitcoin’s transaction fees system, Ethereum uses gas fees.
Participants in the Ethereum network need to pay gas fees for all transactions carried out on the blockchain.
What Blockchain Does Litecoin Run On?
Litecoin runs on the Litecoin blockchain, which offers an open-source framework.
Learn more: Is Litecoin An ERC20 Token?
Is Ethereum Better Than Litecoin?
On paper, Ethereum is better than Litecoin, but It may depend on your preferences.
Ethereum, like Litecoin, has varying strengths and downsides. So, let’s see how the two compete:
Unlike Ethereum, Litecoin plans to maintain the PoW mechanism going into the future. However, as Ethereum launches ETH 2.0, which runs the Proof of Stake mechanism, the network will enjoy faster block production. Also, Ethereum will join the list of eco-friendly cryptos.
Decentralization gives Ethereum more uses in the real world compared to Litecoin.
Many developers and investors prefer ETH because of its scalability. As seen above, Litecoin’s main purpose remains to facilitate transactions and store value.
There are thousands of dApps, DeFi, and NFTs built on the Ethereum network. Litecoin, on the other hand, only works with transactions.
Is It Better To Mine Ethereum Or Litecoin?
It’s more valuable to mine ETH because it holds a higher market value than Litecoin.
Considering the energy consumed and resources used, you will have better returns when mining Ethereum.
Learn more: Can You Mine Litecoin With GPU?
Is Bitcoin Cash Better Than Litecoin?
No. Bitcoin Cash (BCH) is not better than Litecoin (LTC). Both are forks of Bitcoin, and, like most cryptocurrencies, they out-compete each other in different fields.
Let’s briefly compare the two.
Bitcoin Cash uses the SHA-256 hashing algorithm, while Litecoin employs the Scrypt algorithm. Scrypt is easier to use and requires fewer system resources.
Market Prices and Supply
With the volatile cryptocurrency market, it’s impossible to figure out which of the two will hold the lead long term.
As of this writing, the BCH market price is $191.35 versus LTC’s $69.77; the market capitalization of BCH is $3.65 billion, while that of LTC stands at $4.9 billion.
Therefore, if you’re looking to pick based on the market price, it’s cheaper to own 1LTC than 1BCH. Also, if you rely on a market cap to add tokens to your portfolio, LTC takes the win here.
Compared to Litecoin, BCH has a block time of 10 minutes, while LTC has a 2.5-minute block time. Even though LTC is faster, keep in mind that BCH has a larger block size.
As we’ve seen, Litecoin and Ethereum do not run on the same blockchain. Each project is separate and solves a unique market problem.
Ethereum does well with smart contracts whereas Litecoin is a transactional token. It’s much more valuable to mine ETH than LTC, but both options are lucrative in their own right.