3 ms·
Probably for the same reasons why Litecoin was designed over Bitcoin. Transactions are posted faster and it has more transaction capacity per second. Bitcoin
by retrac 5y ago
Probably for the same reasons why Litecoin was designed over Bitcoin. Transactions are posted faster and it has more transaction capacity per second.
Bitcoin is inherently transaction-limited (as is Litecoin and all currencies designed in Bitcoin's image). One megabyte per block. Six blocks per hour. Approximately. That works out to about 1 - 2 transactions per second in practice, on average. For about four years it has almost constantly been maxed out for transactions-per-second. The surplus are shed by making them too expensive via the transaction pricing mechanism.
Generally, transaction fees to send Bitcoin remain reasonable for large purchases (typically 0.10 - 1 USD) but during times of congestion the fee pricing mechanism can lead to prices as high as $50 to get a transaction in the next few blocks reliably. While such periods are generally very temporary at a day or two long, it does tend to scandalize and upset newcomers, understandably.
Litecoin's design has more inherent TPS capacity, it isn't already at its TPS limit as it isn't as popular, and it confirms blocks faster. It's generally more suitable for lots of small, low-value transactions in a retail setting. It also has the most infrastructure around it for any cryptocurrency besides Bitcoin and Ethereum.