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The Confidential Side of Litecoin Transactions
Many people falsely believe that the use of cryptocurrencies is always anonymous. But the truth is that they are mostly “pseudo-anonymous” or have anonymity as an option. Litecoin is one of the few virtual assets that offers users complete confidentiality. If the coin is used wisely, this feature can make businesses more profitable.
Litecoin has several advantages that users should consider before looking into an LTC to BTC exchange.
- High transaction speed. First off, Litecoin is fast and can process transactions several times faster than Bitcoin (2 minutes 30 seconds versus 10 minutes). The fast transaction time also makes it harder to hack or try a double-spending scheme.
- Low transaction fees. Unlike Bitcoin, the network separates Litecoins that are not derived from transaction fees. Such a strategy incentivizes miners and lowers charges.
- Open source code. Litecoin is open source and uses the core components of Bitcoin’s code. This feature makes it easier to update the code whenever the need arises.
- Confidentiality. A feature that everyone will like is the options for anonymity offered by this cryptocurrency. One of Litecoin’s updates was called “MimbleWimble,” which gives users a high degree of privacy.
The only disadvantage is that some people may not like how Charlie Lee, the creator of Litecoin, sold all his Litecoins in December 2017. Mr. Lee said that he sold because he wanted to focus solely on development. However, this action negatively affected the coin’s credibility because it was viewed as part of a possible pump-and-dump scheme.
New Opportunities by Using LTC
Litecoin has several competitive advantages besides its anonymity and the described above pros. An example is its efficiency over Bitcoin when it comes to facilitating transactions.
The high speed at which Litecoin can complete a transaction makes this crypto more valuable for sending small amounts of cash. For example, a business that needs to send a few hundred dollars to a client would be better off going with Litecoin.
Another excellent example of this in action is paying for inexpensive IT services, sending remittances, or any other transaction involving anything less than thousands of dollars.
In essence, the use of LTC can help to increase cash flow by facilitating business transactions. And this is regarded as a crucial point in business as it helps maximize profits.
Adopting Litecoin is not only a sound business strategy but is also a good investment opportunity. As of February 2022, the currency’s price is lower than it has been since mid-2021, which means now is the time to buy, not sell.
You can learn more about investing opportunities by following this link: https://godex.io/blog/crypto-talks/dogecoin-vs-bitcoin-what-is-better-to-invest-in-2022-godex-io.
Eventually, the price of crypto will go up, possibly higher than it was before, as per the rules of economic cycles. Such tendency will result in high profits for anyone who invests now.
LTC’s High Privacy Option
Litecoin did not always have the MimbleWimble protocol. But this coin’s origin and development story should make people understand why this opportunity is now available.
Charlie Lee was involved with online gambling until the United States made it a federal crime. The passage of this law made him believe that people needed an alternative to the dollar system. Litecoin was the result.
At first, Litecoin had an incognito mode, but it was decided to go further. The result was the MimbleWimble upgrade. This technology may sound familiar. That is because it is the same tech used in the Grin privacy coin. The technology is complicated, but what it does is make the wallet addresses visible only to the sender and recipient.
Also, MimbleWimble uses the technology known as Dandelion. This transaction routing mechanism conceals the IP addresses of all the parties involved in transferring virtual assets.
To Sum Up
Litecoin is an excellent alternative to Bitcoin for all the reasons listed above. It is faster, low-cost, and open source. Most importantly, it is anonymous due to the MimbleWimble upgrade, while Bitcoin remains pseudo-anonymous.
You should consider using Litecoin for business operations if your company’s policy is to ensure the complete confidentiality of customers.
Main Editor in Hooks.Guide, Embedded Software Engineer.