$LTC - Litecoin (LTC) is a peer-to-peer cryptocurrency and open-source project that was launched in 2011. It was created as a "lite version" of Bitcoin, with the goal of improving some aspects and offering a faster and more efficient alternative for everyday transactions.
**Litecoin Key Features:**
* **Transaction Speed:** Litecoin has a block time of 2.5 minutes, compared to Bitcoin's 10 minutes. This means that Litecoin transactions are confirmed much faster.
* **Higher Maximum Supply:** Litecoin has a supply cap of 84 million coins, four times more than Bitcoin's cap of 21 million.
* **Different Mining Algorithm:** Litecoin uses the Scrypt mining algorithm, which is less resource-intensive than Bitcoin's SHA-256 algorithm. This made Litecoin mining more accessible to average users in the early days.
* **Low-Cost Transactions:** Because of its increased speed and efficiency, Litecoin transactions are often cheaper than Bitcoin transactions.
**How Does Litecoin Work?**
Litecoin is built on the same blockchain technology as Bitcoin. The blockchain is a public, decentralized ledger that records all Litecoin transactions. Transactions are verified by miners who solve complex math problems to add new blocks to the blockchain. Miners are rewarded with Litecoins for their work.
**What is Litecoin Used For?**
Litecoin is used for a variety of purposes, including:
*Everyday Payments:** Because of its speed and low cost, Litecoin is suitable for everyday transactions, such as buying coffee or paying bills.
* Value Transfers:** Litecoin can be used to transfer value across borders quickly and cheaply.
*Investment:** Like other cryptocurrencies, Litecoin can be bought and held as an investment.
