Litecoin is a cryptocurrency that enables instant payments to anyone in the world and that can be efficiently mined with consumer-grade hardware. In 2009 Google engineer Charlie Lee started his own blockchain based on the work done at Bitcoin. Litecoin differs from Bitcoins in aspects like faster block generation rate and use of scrypt as a proof of work scheme. This means that transfers happen faster, which makes Litecoin for more suitable for regular payments. That’s also the reason why people say Litecoin is the silver to the Bitcoin gold… because you don’t use gold to pay for stuff, but coins used to be made from silver.
Bitcoin has a coin limit of 21 million, and Litecoin has quadrupled this to 84 million coins. Creating a new block takes 2.5 minutes. This faster processing of transfers, makes the Litecoin system ideal for making small-size purchases. And because it’s based on Bitcoin, it’s super easy for software that supports BTC to also incorporate LTC.
- max. 84 million coins, means smaller blocks, faster calculations
- Faster transactions: +/- 2.5 min
- Considered a good payment method
- Low transaction fees: 0.2~1.5 USD
- The silver to Bitcoin’s gold