What is Litecoin Block Reward Halving?
In the crypto currency universe, there are different digital currencies that work with various consensus algorithms. One of these consensus algorithms is the Proof of Work, which has become popular with Bitcoin, and Litecoin and Bitcoin PoW networks work with the computing capacity of miners and processors to verify transactions on the network.
The transanctions are carried out with devices that have a large number of processors that consume large amounts of energy and keep the network reliable. Miners confirm that the energy and processes they consume are real and cannot be changed, and they receive a block award.
When we compare Bitcoin miners with 12.5 BTC per block to Litecoin miners, the difference doubles. Because Litecoin miners earn 25 LTC block reward per block.
Miners’ block prizes are reduced by half in 840,000 blocks in the Litecoin network and in every 210,000 blocks in the Bitcoin Blockchain. This reduction in rewards takes 4 years on average.
Litecoin Supply and Total Processor Power in Litecoin Network
The maximum supply of Litecoin is 84,000,000 LTC. More than 63,000,000 of this number have been mined. This number is equal to 75% of the total amount of Litecoin to be produced. The LTC daily production will drop to half from 14,400 to 7,200 after the block reward halving.
The total processing power of the Litecoin network has reached an all-time peak of 300 GH/s. Although it can help miners to have positive thoughts for the future of the Litecoin network with the rise of processing power, it is clear that miners’ profits will decline after the block reward halving,
Does Block Reward Halving Affect Prices?
One of the much anticipated events in the crypto currency world was completed on August 5th towards the end of the summer.
To illustrate this situation with current currencies, the value of the interest rate increase corresponds to an increase in the value of the block reward halving.
Litecoin founder, Charlie Lee made important statements on this issue. In addition to the expected 2.5-minute time, he noted that miners now dig 1 block in an average of 1.4 minutes. This means that miners are not interrupted by hash rate.
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