Litecoin (LTC) is a decentralized, peer-to-peer cryptocurrency that was created in 2011 by Charlie Lee, a former Google engineer. Often referred to as the "silver to Bitcoin's gold," Litecoin was designed to be a lighter, faster alternative to Bitcoin, with a focus on enabling quicker transaction processing and lower fees. It operates on an open-source blockchain network, meaning anyone can participate in securing the network or verifying transactions.

Litecoin shares many similarities with Bitcoin, as it was forked from Bitcoin's codebase. However, it differs in a few key ways. One major distinction is its use of the Scrypt hashing algorithm instead of Bitcoin's SHA-256. Scrypt is less resource-intensive, making Litecoin mining more accessible to individuals using standard hardware in its early days (though specialized ASIC miners now dominate). Litecoin also has a faster block generation time—approximately 2.5 minutes compared to Bitcoin’s 10 minutes—allowing for quicker transaction confirmations. Additionally, Litecoin has a higher total supply cap of 84 million coins, four times Bitcoin's 21 million.

The cryptocurrency was created to complement Bitcoin rather than compete with it directly. Charlie Lee has emphasized that Litecoin is ideal for smaller, everyday transactions, while Bitcoin serves as a store of value. Over the years, Litecoin has maintained a strong presence in the crypto market, often ranking among the top cryptocurrencies by market capitalization. It’s widely accepted by merchants and supported on major exchanges.

Litecoin has also been a testing ground for innovations later adopted by Bitcoin, such as the Segregated Witness (SegWit) upgrade in 2017, which improved transaction scalability, and support for the Lightning Network, enhancing speed and efficiency. Despite its longevity and reliability, Litecoin faces competition from newer cryptocurrencies with advanced features, though its simplicity and stability keep it relevant

#OnChainInsights