Litecoin: everything you need to know about LTC
Axel has been immersing himself in the world of crypto and blockchain for quite some time, which he then translates into understandable articles.
Proof of Work
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What is Litecoin?
Litecoin (LTC) is the younger sibling of Bitcoin and was designed to facilitate fast and easy payments. It's a decentralized global payment network that is secure, fast, and cost-effective. Additionally, it is one of the oldest, most popular, and stable cryptocurrencies globally.
How does Litecoin work?
Litecoin allows users to make fast and affordable transactions worldwide. The Litecoin network was created in 2011 by Charlie Lee, a former Google engineer who became interested in Bitcoin. As a result, Litecoin emerged as a derivative of the Bitcoin network.
Litecoin aims to improve three key issues faced by Bitcoin: speed, scalability, and centralization. Additionally, Litecoin is characterized by the following features:
- High transaction speed
- Great scalability
- A decentralized mining process
- Low transaction fees
- Strong security (no major incidents in its over 10-year history)
- Focus on privacy
- An excellent reputation
Litecoin vs Bitcoin
As Litecoin is derived from Bitcoin, it operates in most respects like its older and larger sibling. However, its special characteristics make it a lighter alternative to Bitcoin, hence the name "Litecoin."
Litecoin originated from a copy of Bitcoin's source code, rather than a fork, resulting in an entirely new blockchain rather than a split from the original. Litecoin shares many technical similarities with Bitcoin but has some crucial differences. For example:
- A unique Litecoin mining hashing function
- Faster block generation time
- A larger maximum coin supply
Litecoin and Bitcoin both use Proof of Work (PoW) as their consensus method. Miners compete to solve complex mathematical puzzles to earn the right to add valid transaction blocks to their blockchains. Litecoin also shares other features with Bitcoin and serves as a valuable testnet for new Bitcoin protocols.
Litecoin excels in speed and transaction processing, making it a practical and scalable transaction platform. In contrast, Bitcoin has evolved more as a store of value. A key difference between them is their hashing function, which converts data into unique numerical sequences.
Litecoin is now one of the world's most recognized and used blockchain payment networks. Many consider it a complement to Bitcoin rather than a competitor, often referring to it as "the silver to Bitcoin's gold."
An open source platform
Litecoin is managed by a dedicated group of developers who collaborate through social media and GitHub, a code-sharing platform. As an open-source network, anyone can freely copy and modify the code for various purposes, including creating their cryptocurrency. However, for most people, using existing cryptocurrencies is sufficient.
The LTC token
Litecoin can be used to pay for goods and services, often through payment processors that accept cryptocurrencies on behalf of retailers and merchants. Additionally, Litecoin is widely traded on major cryptocurrency exchanges, making its market one of the most liquid in the world.
The Technology Behind LTC
While Litecoin was not the first cryptocurrency to copy and modify Bitcoin's code, it is one of the more historically significant ones. Those familiar with how Bitcoin works will likely find Litecoin easy to understand.
Litecoin uses cryptography to enable the ownership and exchange of its cryptocurrency (LTC), and its software sets a hard limit of 84 million LTC. This is the maximum number of LTC coins that can ever be created.
A maximum supply
Litecoin has a maximum supply of 84 million LTC, and the amount of new LTC entering the market is regularly reduced. This predictable, limited supply makes Litecoin popular among traders, who believe that its value will rise as fewer new coins become available. Additionally, Litecoin often follows the growth of Bitcoin when Bitcoin's price rises.
Litecoin has an average block time of 2.5 minutes, which is about four times faster than Bitcoin. This is made possible by the Scrypt hashing algorithm, which governs the security and transaction recording in Litecoin's decentralized ledger. This fast block time makes Litecoin suitable for retail transactions, as retailers can afford to wait for confirmations in just a few minutes, as opposed to the approximately ten minutes required by Bitcoin.
Mining Litecoin operates similarly to other proof-of-work (PoW) cryptocurrencies. Each Litecoin transaction is confirmed and processed by miners who deploy their computer's computational power to mine blocks that form the Litecoin blockchain. Once a block is verified, it is added and linked to the previous block in the chain. Miners who successfully create a new block are rewarded with a set amount of LTC, and this reward is halved approximately every four years.
Benefits of Litecoin
Why do investors choose Litecoin? Here are some of the key reasons:
- One of the oldest, most stable, and popular coins
- Transactions are much faster compared to Bitcoin
- Increasingly accepted as a global payment method
- Established, reliable system with good liquidity
- Very low transaction fees
Drawbacks of Litecoin
What are the disadvantages of Litecoin that you should consider?
- Faces stiff competition as a "Bitcoin alternative"
- Less suited as a store of value platform
- There is much less development activity around Litecoin compared to other cryptocurrencies
Who is the founder of Litecoin?
Litecoin was founded by Charlie Lee, a former Google employee. He introduced Litecoin to the market in 2011 as an alternative cryptocurrency and is considered the founder and creator of Litecoin.
In 2025 experts expect a minimal price of €213.57 and a minimal price of €706.06 in 2030.
Good time to get in?
View all key statistics of the past 24 hours here.
Use these figures to get a better picture of the Litecoin market.
LTC Return On Investment
See how much the price has risen or fallen over the years.
Historical Litecoin price
Here you can see Litecoin's daily prices, trading volume and market cap. Looking for a specific date? You can fill in the range all you want. Maybe you'll spot the one trend!
Frequently asked questions
The cost of 1 Litecoin (LTC) depends on the current exchange rate. It is influenced by market conditions, the economy, and the behavior of other investors. Therefore, the price of 1 Litecoin can vary at any given moment.
The cryptocurrency world never sleeps, and like any other crypto, Litecoin's value fluctuates continuously. While traditional stock markets close at night, cryptocurrency exchanges are open 24/7, causing prices to change constantly. You can check the current price of Litecoin here.
According to experts, the expectations for Litecoin are positive. However, keep in mind that market conditions can change at any time. If you want to form your own conclusions about the price, you can check Litecoin's price page.
Litecoin is one of the oldest and most stable cryptocurrencies. But, of course, nobody knows what will happen in the crypto world tomorrow, including us. Therefore, it's up to you to decide whether to invest in LTC. And as always, we advise thoroughly researching the market and never investing more than you're willing to lose.
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