Litecoin is a peer-to-peer digital currency that is based on the Bitcoin protocol, but with several key differences. Created by Charlie Lee in 2011, Litecoin is often referred to as the “silver to Bitcoin’s gold” due to its similar characteristics.
One of the main differences between Litecoin and Bitcoin is the mining process. Litecoin uses a different algorithm called Scrypt, which is designed to be more memory-intensive and is intended to make mining more accessible to a wider range of users. Additionally, Litecoin has a faster block generation time of 2.5 minutes compared to Bitcoin’s 10 minutes, which allows for faster transaction confirmation.
Another difference is the maximum supply of Litecoin, which is 84 million, compared to Bitcoin’s 21 million. This means that Litecoin has four times the maximum supply of Bitcoin.
Litecoin has been considered as a “testbed” for new Bitcoin features, as it is often the first to implement new updates and upgrades. It has also been used in several merchant services, and it’s considered to be one of the most stable and secure alternative cryptocurrencies.
Litecoin’s price is also highly volatile, and its value fluctuates frequently, making it an attractive option for short-term traders.