Notes from Charlie Lee’s “Creating Litecoin” presentation

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Charlie Lee came to Google last week to talk about how he designed the cryptocurrency, Litecoin. Charlie is an ex-Googler &, ex-Director of Engineering at Coinbase. I took notes from his talk that you can find below:

  • Open source fork of BTC
  • Four x number of coins (84 mn LTC)
  • ¼ block confirmation time — Two.Five mins
  • Scrypt proof of work (Bitcoin uses SHA256 for hashing) — “Silver to Bitcoin’s Gold”
  • Launched October 13, 2011

  • Alternative crypto to BTC
  • There’s even a webstek to create fresh crypto nowadays: build-a-co.ter

Altcoins before Litecoin

  • Namecoin: Very first fork, launched te 2011, decentralized DNS of blockchain, same proof of work spil BTC (SHA256D), have difficult time to force merge mining — need to piggyback on Bitcoin, Bitcoin hash have the same problem
  • Ixcoin: Precies clone of Bitcoin, launched te 2011, 580k coins postmined, became popular because people wished to be te altcoin
  • I0coin: Fork of Ixcoin with 0 pre-mining, bad name, didn’t truly take off because no one knew how to pronounce it
  • Solidcoin: Launched te 2011, fork of bitcoin, 30,080 coins postmined, Three minteken blocks, immovable fees — attacked with spam transactions, shutdown and relaunched spil Solidcoin Two
  • Geistgeld: Built on multicoin, 7.7 mn coins premined, 15 2nd blocks, high orphan rates, miners might waste electro-therapy mining blocks that did not indeed get to the blockchain
  • Tenebrix: 7.7 mn coins premined, Five mins blocks, 50 coins prizes indefinitely, very first scrypt proof of work, difficult for GPUs to mine and have to use CPUs (GPU is more efficient than CPU) due to Scrypt
  • Fairbrix: Fork of tenebrix, created by Charlie Lee, no premine, plagued with various bug ter multi coin
  • An excuse to learn BTC code
  • Create an altcoin better than the surplus
  • Scrypt proof of work: Don’t challenge with Bitcoin miners (Namecoin), CPU mining is joy (Tenebrix) → LTC is newer only 6 months, so mining is still profitable compared to BTC
  • Two.Five zoogmoeder blocktimes: Quick block makes coin lighter to use (Solidcoin), too prompt and it becomes inefficient (GeistGeld)
  • Fair launch, no premine (I0coin, Fairbrix)
  • Fork of Bitcoin and Smooch (Fairbrix, Soldicoin)
  • Good name and marketing (all)
  • Addresses commence with ‘L’ so that people don’t mix it up with Bitcoin
  • Two.Five mins block, keep the same prize schedule
  • Find the hash of the block that’s firmer and stiffer for Bitcoin, Litecoin blocks do not begin with zero due to scrypt proof of work
  • Hardest work is to creating the genesis block and this code is not published by Satoshi so Charlie had to switch sides engineer this → added a quote on Steve Jobs passing away ,)
  • Fair launch: Source / binary released a week before launch (a long time before then!), launch time selected by forum poll
  • Genesis block withheld — can only mine on testnet — make genesis block a secret (you can’t mine on top of it because there are two numbers that are params)
  • Switching to mainnet with a config switch

Why is Litecoin successful?

  • Effortless to recall name
  • Good marketing with “silver to bitcoin” tagline, which ended up being a self-fulfilling prophecy
  • Arbitrage coin with BTC
  • On practically every exchange
  • Reuse of old Bitcoin mining GPUs
  • When BTC moved to ASICS, because BTC miners dreamed to reuse their CPUS
  • Fair launch → don’t pre-mine your coins!

Related movie: Claymore’s Dual Eth Miner For Nvidia – Superb! But not for windows Ten

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