Solutions for Accepting Payments in Litecoin: An Overview

Companies may benefit greatly from adding a Litecoin payment gateway as the cryptocurrency market continues to develop.

Solutions for Accepting Payments in Litecoin: An Overview

Bitcoin's 2009 unveiling by Satoshi Nakamoto surprised everyone. To shake up the financial sector, over 7,800 digital assets have been released to the public. Litecoin, worth $5.8 billion, allows enterprises to make fast, cheap transactions with customers.

So that your business may begin taking Litecoin (LTC) transactions from customers, let's go through the mechanics of establishing a Litecoin payment gateway.

What Sets Litecoin Apart From Bitcoin?

Developed by computer scientist Charlie Lee in late 2011, Litecoin (LTC) is the sixth biggest cryptocurrency by market valuation. The fact that Litecoin is based on Bitcoin's codebase explains why the two cryptocurrencies share many features.

Both cryptocurrencies use distributed ledger technology (blockchain) and operate via P2P networks of users. This means that digital assets may be sent, received, stored, and paid for without any governing body that can censor or restrict the usage of the network.

Because there is no central Litecoin network administrator, miners must verify transactions and add new blocks to the blockchain themselves.

Similarly to Bitcoin, the Litecoin supply is capped at 84 million coins, and the issuance rate is half every four years.

However, the two digital currencies do vary in important ways.

To begin, whereas Bitcoin's block production period is 10 minutes, the Litecoin network only takes 2.5 minutes. As a consequence, LTC transactions are cheaper (the typical LTC transaction fee is roughly $0.01) and more quickly confirmed and delivered to recipients than BTC transfers.

The Scrypt mining algorithm, as opposed to Bitcoin's SHA-256, makes mining Litecoin easier and reduces the need for specialist mining hardware (ASICs) in the network.

While Bitcoin and Ethereum seem quite similar to one another, neither digital asset project sees the other as a threat.

Instead, Litecoin is seen as "silver to Bitcoin's gold," with LTC typically functioning as a "test bed" for Bitcoin's network updates and developments.

The Litecoin Payment Gateway: What Is It?

A Litecoin payment gateway lets enterprises accept LTC from clients. The payment gateway solution may charge a percentage fee or a flat fee (or both) to merchants for processing Litecoin transactions.

The Litecoin payment gateway service instantly changes the customer's fiat currency order total into Litecoin at a predetermined or live conversion rate which is very convenient.

Customers may use their mobile devices to scan a QR code or manually input their Litecoin wallet address at checkout.

The risk to the merchant is reduced by the payment gateway, which sets a deadline (often an hour) during which the user must complete the transfer.

The payment processor then transfers the remaining balance to the merchant's bank account or exchanges the cryptocurrency for fiat money, after subtracting the transaction costs.

Some Litecoin payment gateway solutions actually give out LTC to merchants, while others convert LTC to USD or EUR first before providing the payments to the retailer. 

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