Litecoin, one of the top 20 cryptocurrency projects in terms of market cap in the cryptocurrency ecosystem, is based on a technology similar to Bitcoin. Litecoin was founded by Charlie Lee in 2011. Litecoin is faster and lower cost compared to many blockchains and has a total supply of 84,000,000 LTC.
Segregated Witness (SegWit) and Atomic Swaps are among the technical specifications of Litecoin. SegWit enables faster and more cost-effective transactions by speeding up transfers and increasing transaction capacity, while Atomic Swaps allow for direct exchanges between different cryptocurrencies.
What Is Halving?
Halving is the process of periodically halving the mining rewards in cryptocurrency projects. These intervals were determined by Satoshi Nakamoto and Bitcoin developers to be every 4 years. The purpose of block rewards is to secure the network by keeping records of transactions and incentivize miners who confirm transactions and process them on the blockchain. The goal of the halving is to encourage miners to work longer on cryptocurrency projects.
If block rewards continue at the same pace without halving, the only payoff that will encourage miners to stay on the network will be transaction fees as the limited supply of these cryptocurrencies will be in circulation much sooner than usual. And this would cause many miners to leave the network and greatly reduce the processing power on the network. Thus, these concepts are interconnected and affect each other.
For more information, you can read our article “What Is Halving?”.
What Is Litecoin Halving?
Litecoin halving is the process of cutting Litecoin block rewards in half and occurs approximately every 840,000 blocks on the Litecoin blockchain. With each halving, the amount of rewards distributed to the miners for each block are halved. Theoretically, it has a positive effect on the price of Litecoin. Because the new Litecoin supply, which occurs as a result of halving the block rewards, will also decrease by half. Even if the demand remains the same with the decreasing supply of Litecoin, experts think that the price should be positively affected. However, we should remember other factors affecting the market such as the volatile supply and demand factor.
When Will the Litecoin Halving Happen?
The last Litecoin halving took place on August 5, 2019, and the Litecoin block rewards dropped to 12.5 LTC. After the next halving this summer, block rewards will be reduced to 6.25 LTC. On average, a halving occurs every 4 years, so the next Litecoin halving is expected to occur on July 30, 2023, calculating Litecoin's block duration and block production. However, this date is subject to change. Click on the link below to follow the countdown until the next Litecoin halving.