What Is Litecoin (LTC) ? | The Beginner’s Guide

It is the little brother of the big brother of Bitcoin. Litecoin is a peer-to-peer cryptocurrency, just like Bitcoin. However, it was designed to be faster at processing transactions than Bitcoin, hence the term ‘lite’.

did you know

Unlike the creator of Bitcoin, the mysterious Satoshi Nakamoto, the creator of Litecoin, Charlie Lee, is well known and active on Twitter.

Who invented it?

A former Google employee named Charlie Lee. He was a big fan of Bitcoin, but he thought he could make a better version of it, so he created Litecoin!

A brief history

  • ?Charlie Lee released Litecoin software in a coding community on October 7, 2011.

  • ⚡Two days later, it started up.

  • ?By November 2013, it was worth $1 billion.

  • ?️ Today it is considered one of the largest currencies in the world of cryptocurrencies.

What’s so special about it?

In addition to the benefits of blockchain:

  • ? Decentralized: no one person or group owns or controls it
  • ?Trustless (peer-to-peer) – No more third parties
  • ↔️Borderless: no need for exchanges to move currency across borders
  • Immutability: it can never be changed or reversed unlike all current financial systems.
  • ?‍♂️Double Spend – Solved the problem that many digital currencies had tried to crack
  • ? It is a proof of concept for block chain a technology that will change literally everything.

On top of all that, Litecoin features make it:

  • ? Super fast. With Bitcoin, the average amount of time it takes to create a block on the blockchain is 10 minutes. With Litecoin it takes only 2.5 minutes.

  • ☕Designed for Everyday: It was designed for small transactions, like buying coffee, and thanks to its faster processing speeds.

  • ⛏️Uses a slightly different mining method to produce currency than Bitcoin.

did you know

Only 84 million LTC can be mined. Currently, two-thirds have been ‘unearthed’, and the rest of the coin will take approximately 100 years to mine.

How is it produced?

It is mined in the same way as Bitcoin.

Find more about mining here.

The miners are trying to solve a very difficult puzzle which in doing so creates transaction packets or blocks on the blockchain. A miner is rewarded when he solves the puzzle.

The difference is the algorithm that Litecoin asks its miners to use.

The algorithm used to mine Bitcoin allows miners to join forces, leading to the creation of mining pools. However, the Litecoin algorithm makes it more difficult.

That means it is easier for ordinary people to make money mining Litecoin.

did you know

Just 66 Litecoin addresses hold 40% of all Litecoin currently available. That’s over $2 billion.

How to get Litecoins?

First you will need a wallet which may contain LTC.

Once you have one of those, you will need to find a Litecoin exchange that allows you to buy and sell Litecoin.

What can you do with Litecoin?

Pretty much the same as you can with Bitcoin. Although there are not as many sellers that accept Litecoin as Bitcoin, there are still thousands around the world.

did you know

Litecoin founder Charlie Lee sold all of his Litecoin in 2017 to avoid potential conflicts of interest.

The future

Litecoin has earned a reputation for adding new features quickly.

Apps like LitePay will allow merchants to accept payments from customers’ phones, so you’ll be able to pay for your purchases with crypto sooner than you think.

Right now it’s kind of a race for which currency will become the one we all use for everyday transactions. Right now it’s an open race.


Subscribe to Decrypt newsletters!

Receive daily curated top stories, weekly summaries and detailed analysis delivered directly to your inbox.