litecoin (ltc)

what is 'litecoin'?

Litecoin (LTC) is an Altcoin based on the concept of Bitcoin. It offers faster transaction speeds and improved memory efficiency.

Litecoins creator Charlie Lee

While the creator of Bitcoin, Satoshi Nakamoto is unknown the opposite is true for Litecoin. Charlie Lee a former Google employee had the vision to create a lighter version of Bitcoin.

Charlie Lee the creator of Litecoin
Charlie Lee the founder of Litecoin

What's the difference between Bitcoin and Litecoin?

Litecoin went live on the 13th of October 2011. It was a fork from the Bitcoin. Litecoin is known as “Digital Silver” whereas Bitcoin is known as “Digital Gold”. Let’s compare them from a technical perspective.

Bitcoin Litecoin
Maximum Coin Supply
21 Million
84 Million
Hash Function
SHA-256
Scrypt
Consensus mechanism
Proof-of-Work
Proof-of-Work
Block Time
10 minutes
2.5 minutes
Halving details
Halving every 210 000 blocks.
Halving every 840 000 blocks.
Initial reward
50 BTC
50 LTC
Current block reward
12.5 BTC
25 LTC
Next halving (estimate)
Year 2020
2019
Created by
Satoshi Nakamoto
Charles Lee
Created on
9. January 2009
7. October 2011
Market cap (5. November 2018)
109 Billions
3 Billions
Current Supply (5. November 2018)
17.36 Millions
59.02 Millions
Block explorer

Litecoin is by definition a fork of Bitcoin. But what are the other differences? Both have a proof-of-work algorithm.  Bitcoin has its SHA-256 hash function and Litecoin its Scypt. The hash function Scrypt (pronounced as script) from Litecoin also utilizes the SHA-256 algorithm but in a more efficient way. 

How does the Scrypt function work?

The hash function from Bitcoin processes all transactions in parallel which requires more and more computing power. However, Litecoin does it the other way with its Scrypt function.  Scrypt is serialized which means it processes every transaction one by one, as a result, Litecoin requires less memory in its Blocks. As a consequence, Litecoin mining becomes possible for the average person which doesn’t have to buy specialized mining equipment. But sadly for the average guy, this won’t last forever. Companies in the mining industry are already building more specialized Litecoin hardware.

How long does a Litecoin transaction take?

Since the average block creation time is 2.5 minutes, Litecoin can confirm much faster transactions than Bitcoin. The transaction time depends on the confirmations. Litecoin can confirm 56 transactions per second, which reduces the average transaction time to 30min. Compared to the 78min of Bitcoin.

Share on facebook
Share on twitter
Share on reddit
Share on telegram
Share on whatsapp