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1. Definition of Litecoin Litecoin
(LTC or Ł) is an Internet cryptocurrency based on "peer-to-peer" technology and an open source software project released under the MIT/X11 license. It aims at enabling users to make immediate payment with near-zero cost from one to another in the world .
Inspired by Bitcoin (BTC), Litecoin was created by a former Google employee named Charlie Lee, and it technically has similar implementation principles as Bitcoin does. The production and transfer of Litecoin is based on an open source encryption protocol which is not controlled by any central authority. Instead of replacing Bitcoin, Litecoin intends to improve and complement it like silver to gold. At present, LTC can be transferred into fiat, BTC, ETH and other kinds of digital currency on online cryptocurrency exchanges. Compared to Bitcoin, Litcoin features faster transaction confirmation times, higher trade volume and storage efficiency. With complete industrial chain and sufficient liquidity, it's proved to be a secure and stable commercial system for finance.
2. Bitcoin Vs Litecoin
Based on the open source codes and as the “improvement” of Bitcoin, Litecoin has 3 distinctive differences:
1. In litecoin network, it requires 2.5 minutes on average to generate or process a block, while bitcoin needs 10 minutes. That means litecoin can confirm transaction much faster and users can do money transfer in a much quicker time.
2. Litecoin expects to produce a total of 84 million tokens, while bitcoin 21 million. That is to say LTC is more readily available with high liquidity.
3. Litecoin's Proof-of-Work uses Scrypt encryption algorithm, which first proposed by Colin Percival. That makes mining in litecoin network much easier than that in bitcoin network (before ASIC mining machines arise).