Other than the fast initial authorizations, Litecoin does not provide any other innovative features if compared to Bitcoin. Because of this lack of innovation, some believe Litecoin can’t equal or exceed the value of Bitcoin. What yet remains to be seen is whether the use of a different extraction algorithm and faster blocking times can add sufficient value to Litecoin or not; so as to ensure its longevity.
Like Bitcoin, Litecoin can be attached to a subject that can match or exceed the current hashrate network. This “51% attack” becomes more and more difficult to make and sustain because the hashrate network is constantly growing.
Moreover, this argument would be sustainable if Litecoin was designed to be inefficient on common computer components (CPU and GPU). Giving way to a malicious entity that could produce a lot of specialized hardware can beat the current hashing network.
Refuting the memory bandwidth of “51% attack” theory may get invalidated with the argument that Scrypt is not designed to be inefficient on dedicated hardware; instead it is designed to be highly dependent on the bandwidth of the memory. Since the high speed RAM cache on modern processors already occupies most of the unused space, no considerable improvement could then be done with the creation of dedicated chips.
If, however, we take the “51% attack” theory, we can make an estimate of the costs to be incurred to launch the attack with GPUs. We need to consider a cost for the hardware – about $600 – for the second mega hashes.
The total amount of equipment needed to overcome the attack on the Litecoin hashrate network is an estimated $1.5 million (approximately 5000 AMD HD 5970). In the meantime, there are tens of thousands of GPUs that are about to become useless for extracting the Bitcoin network with the advent of ASIC, which will strengthen the network Litecoin. An increased proportional and constant exchange rate Litecoin may occur to support this additional mining GPU.
Not silver and gold
Some argue it makes no sense to define Litecoin as “silver” to gold Bitcoin, because in a way, Bitcoin is itself both the gold and silver. In fact, in the long run, the unit of BTC might be having too much value to trade every day (“gold”), while other cryptocurrencies, including Dogecoin, Peercoin, Ripple, with units from of much smaller value, may very well act as “silver” which could be naturally/automatically converted from BTC.
To contact the writer of the article: Yashu Gola at firstname.lastname@example.org