Introduction

Litecoin (LTC) is a peer-to-peer cryptocurrency launched in October 2011 by former Google engineer Charlie Lee. Often called "digital silver" to Bitcoin's "digital gold," Litecoin was designed to complement Bitcoin with faster transactions and lower fees.

Litecoin is one of the oldest cryptocurrencies still in active development and use, demonstrating remarkable longevity in the rapidly changing crypto landscape. It has consistently remained among the top cryptocurrencies by market cap.

History and Background

Charlie Lee, an MIT graduate and former Google engineer, created Litecoin to address perceived limitations in Bitcoin, particularly transaction speed and mining centralization. He positioned Litecoin as a "lite" version of Bitcoin suitable for everyday transactions.

Key milestones include:

• 2011: Litecoin launched
• 2017: First major crypto to adopt SegWit
• 2017: Charlie Lee sells his LTC holdings to avoid conflicts
• 2022: MimbleWimble Extension Blocks (MWEB) activated for privacy

The Litecoin Foundation continues to support development and adoption.

Technology

Key Differences from Bitcoin

• Block Time: 2.5 minutes (vs Bitcoin's 10 minutes)
• Algorithm: Scrypt (vs SHA-256)
• Supply: 84 million LTC (vs 21 million BTC)
• Halving: Every 840,000 blocks (~4 years)

Scrypt Mining

Litecoin uses the Scrypt algorithm, which was originally designed to be ASIC-resistant by requiring more memory. While ASICs have since been developed for Scrypt, it remains more accessible than Bitcoin mining. Litecoin miners can also merge-mine Dogecoin.

Lightning Network & MWEB

Litecoin was among the first to implement SegWit and the Lightning Network for instant, low-cost transactions. In 2022, MimbleWimble Extension Blocks (MWEB) added optional privacy features.

Use Cases

• Payments: Fast, low-cost transactions for everyday use
• Testing Ground: New Bitcoin features often tested on Litecoin first
• Store of Value: Long track record and fixed supply
• Merchant Adoption: Widely accepted for payments

Where to Buy Litecoin

Investment Considerations

Litecoin's value proposition lies in its proven track record, active development, and utility as a payment network. However, competition from newer projects and its close relationship with Bitcoin (often trading in correlation) are factors to consider.

Learn more in our crypto investing basics guide.