It is a common thing to change the dynasty in history. The decline of one dynasty is the rise of another dynasty. This rule is applicable in many places. The same is true of the world of Bitcoin currency. Although Bitcoin has dominated for many years, as its own shortcomings become more and more obvious, there will be new cryptocurrencies to replace it and take the hegemony. From now on, the most likely successor is the Litecoin and Bitcoin cash. Which one will be better? The following will compare the two in several ways.
Mining algorithm
Both Litecoin and Bitcoin Cash inherit the Bitcoin POW mechanism, but the Litecoin has been modified in the algorithm, using the Scrypt encryption algorithm, and Bitcoin cash is still the SHA256 encryption algorithm like Bitcoin. In the decryption process, the SHA256 encryption algorithm only needs to perform hash collision decryption, which is suitable for parallel computing. Therefore, it is easy to develop a dedicated mining chip (ASIC mining machine) to improve efficiency. The Scrypt encryption algorithm of Litecoin is not suitable for parallel computing. Litecoin used the Scrypt algorithm because it was difficult to develop the Litecoin-specific mining machine, but it was counterproductive. The special mining machine for the Scrypt algorithm was still mined and widely used. So from this perspective, the mining algorithm of Litecoin isn’t much better than that of Bitcoin Cash.
Expansion plan
Litecoin, like BCE, locks the 1MB limit. Only increase the speed of its own block by an increment (the block interval is shortened from 10 minutes to 2.5 minutes). Bitcoin cash is directly adjusted to a block size of 8MB, and then upgraded to 32MB, increasing transaction speed by increasing transaction processing capacity per second. This means that Bitcoin cash will be able to accommodate more users.
Direction of development
The improvement of Litecoin only linearly improved the performance of Bitcoin. For example, the confirmation speed is a little faster, and the TPS is slightly larger. Bitcoin cash is innovative, first in the payment field, to use its own advantages to help more people, followed by exiting smart contracts, color coins and other technologies to create a commonality like Ethereum for some projects development.
Trading volume and handling fee
From the data of the first half of 2018, the average handling fee for BCH cryptocurrency is 0.0118 US dollars for half a year, and the US dollar is 0.0765 US dollars for LTC, which is nearly 7 times higher than BCH. It can clearly see the handling fee of BCH is far less than LTC. This shows that BCH is more suitable for trading. This has also been verified by the actions of social network Yours. The payment currency originally used by Yours was Bitcoin, but as the Bitcoin handling fee was too high, the final payment was for Litecoin. When Bitcoin cash was born, Yours changed its payment currency to Bitcoin cash.
Degree of decentralization
Judging whether a cryptocurrency is decentralized, mainly from three aspects: whether the transaction will be censored, the network's self-recovery ability, whether it can allow free access to the network. Both BCH and LTC meet these three conditions, but Litecoin is greatly influenced by its founder. While Bitcoin cash is the only cryptocurrency developed by multiple development teams. In terms of currency, the top 100 account of Litecoin holds LTC with 45% of total supply, while Bitcoin cash is only 25%. In summary, BCH is more decentralized than LTC.
investment
Bitcoin cash and Litecoin are mainstream currencies. From the market capitalization ranking, BCH market cap ranks fourth, litecoin market cap ranks sixth, and BCH price is about 10 times of Litecoin. The most important thing is Litecoin seems to be insufficiently explosive this year due to the excessive strength of last year. In contrast, Bitcoin cash is full of explosive power, and the doubling in April is the best illustration.
In summary, I personally have more confidence in Bitcoin cash or bch value. In the battle for the bitcoin hegemony, I think Bitcoin cash is more likely to win.