Litecoin recently received FUD from CNBC’s Jim Cramer. Yet, the finance analyst forgot to mention the coin is quietly reaching noteworthy milestones in 2022. Both 52 million new addresses used the token and over 39 million transactions were performed in LTC. Now, the 2nd oldest active cryptocurrency is preparing for another milestone, the third halving of Litecoin ($LTC).
What is Halving?
This process may seem complex to some, but it’s quite simple. People who use their computer to process and validate Litecoin transactions get a ‘block reward’ for the mining service.
Both energy is consumed and time is used by these independent blockchain miners.
Currently the reward for mining is 12.5 LTC per Block completed. This will be split into half in 2023. The new reward for mining a block will be 6.25 LTC.
The halving is done to maintain a premium purchasing power of crypto assets and performed by all blockchains essentially.
What is a Litecoin Block?
The block itself is all the data created in the production, trade, and validation of LTC. Blocks are containers of data made in a specific time frame that cannot be modified after being produced (organically).
Each block is stacked on top of each other in a ‘chain’ link of permanent order. That’s why it’s called ‘block+chain.’
Blocks are secured with cryptographic methods and sometimes even contain code of computer programs.
LTC Block Rewards Halving History
Litecoin Blockchain has been running since 2011. The first miners received 50 LTC for block rewards.
In August of 2015 the first halving was executed. It lowered the reward to 25 Litecoins. During that month the price of Litecoin ranged between US$2.58 and US$4.64.
In August 2019 the third and most recent block reward halving occurred. The premium for mining went down to 12.5 LTC per ‘data container’ mined. Prices of the token took a serious leap since the prior slashing of rewards, 4 years before. The high of August 2019 was US$105.59 while the low was US$62.61, charted on the 30th of the month.
The next halving will occur in August 2023. The Litecoin network performs the block reward update every 4 years.