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Litecoin’s Proof-of-Work Consensus

Where Litecoin differs is in how it calculates the proof-of-work function. Bitcoin uses SHA-256. The problem is that miners can take advantage of ASICs. An ASIC is a specialized piece of hardware designed for a specific task, in this case, mining cryptocurrency. The creators of Litecoin were concerned that this could lead to ASIC using miner’s dominating the network.

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