What is Litecoin (LTC)

Litecoin (LTC) is one of the oldest cryptocurrencies in existence, founded by Charlie Lee. Litecoin is a source code fork of Bitcoin; therefore, they share many of the same characteristics. However, LTC benefits from shorter block generation times as it uses a faster payment confirmation schedule and a different cryptographic algorithm. Litecoin also has lower transaction fees than Bitcoin and can be used as a digital currency on the web to pay for goods and services and to play at crypto casinos.

A brief history of Litecoin

Litecoin launched its network in October 2011. LTC adopted most of Bitcoin’s source code while introducing a faster block generation time, a higher maximum token supply, a different hashing algorithm, and a slightly modified GUI. Charlie Lee, an early Bitcoin miner and former Google software engineer, led the development of Litecoin as a lighter version of BTC. LTC is one of the most widely accepted cryptocurrencies, and in most of its history, it ranked among the top 10 cryptocurrencies by market capitalisation.

Litecoin’s initial block reward was 50 LTC, with the block reward splitting every 4 years. The final Litecoin is predicted to be mined by the year 2142.

How Litecoin works

The cryptocurrency was created by Charlie Lee, a former Google employee, who intended Litecoin to be a ‘lite version of Bitcoin.’

LTC is based on the Bitcoin (BTC) protocol but differs in hashing algorithm, hard cap, block transaction time, and other factors. The Litecoin Network has a block time of just 2.5 minutes and negligibly low transaction fees, making it suitable for real-time payments and daily use.

Litecoin was initially released via an open-source client on GitHub on Oct. 7, 2011, and the network went live 5 days later.

What is Litecoin used for?

After Bitcoin, Litecoin was considered one of the most popular pure cryptocurrency in the industry’s early days. Its success can be largely attributed to its utility. Litecoin is one of the most widely accepted cryptocurrencies, with more than 2,000 merchants across the globe accepting LTC for payments.

Its main benefits are its speed and low fees. Litecoin transactions are typically confirmed within minutes, with transaction fees almost negligible. This makes it an attractive, usable alternative to Bitcoin, especially in developing countries that utilise cryptocurrencies for real-time transactions.