When trying to decide which cryptocurrencies to invest in, users typically research the qualities of different cryptocurrencies. This is the best way to figure out which currencies fits their needs most. In this post, we will be comparing three cryptocurrencies – Bitcoin (BTC), Litecoin (LTC) and NEO. All cryptocurrencies have common qualities, such as having no physical representation. They can be used for investing, receiving compensation for a service, they can be exchanged for other cryptocurrencies or physical cash. These three cryptocurrencies have their transactions distributed on a ledger called the Blockchain.
Bitcoin was the first cryptocurrency to become mainstream and many other cryptocurrencies are constantly being compared to it.
If Bitcoin is the digital version of gold, then Litecoin is considered to be the digital version of silver. Just like Bitcoin, Litecoin is a peer-to-peer digital currency with no middleman and is used for fast and cheap transactions. However, Litecoin has a faster block solving time of 2.5 minutes compared to Bitcoin’s 10 minutes. One of the main differences between Bitcoin and Litecoin is the total number of coins which each cryptocurrency can produce. The Bitcoin network can produce “only” 21 million coins, while Litecoin can produce up to 84 million coins. Even though this difference sounds significant, Bitcoin and Litecoin are divisible into very small amounts (you could transfer very small parts of coins) so this difference is not that important.
NEO is the first decentralized cryptocurrency and blockchain platform launched in China. It is usually compared to Ethereum (and called “The Ethereum of China”), due to the fact that it enables users to create decentralized applications on its platform. A key difference between NEO and Bitcoin is the same as the key difference between Litecoin and Bitcoin – transaction speed. Cryptocurrencies usually use complex programming languages and creating contracts between users could be difficult. NEO smart contracts (NeoContracts) are easier to use than most and can be written in widely spread programming languages as Java or C#.
One of the revolutionary qualities that set NEO apart from Bitcoin and Litecoin is that it allows the digitization of physical assets. These digital assets will be decentralized (as any other information on the ledger) and will be lawfully protected using digital certificates on the blockchain. A small and surmountable disadvantage is that Neo has fewer wallet options than Bitcoin and Litecoin.