Litecoin is a decentralised cryptocurrency created by Charlie Lee on October 13, 2011. Nicknamed ‘’The Silver to Bitcoin’s Gold’’, Litecoin has its reputation in the cryptoassets world. Some features like the average time to generate a block are different from the Bitcoin protocol and have been implemented to solve scalability problems, ease evolution or reduce transactions fees.
Litecoin : Bitcoin’s little brother?
Litecoin is initially a Bitcoin fork, using mining and the Proof of Work process for the network security and 1 Mb blocks. But here are the main differences with Bitcoin :
- Maximum supply is four times higher than Bitcoin : 84 millions agains 21 millions
- One blockc is created every 2,5 minutes against every 10 minutes for Bitcoin
- The hash algorithm to be able to validate a block is Scrypt, compared to SHA-256 for Bitcoin
Transaction fees on the Litecoin network are lower than Bitcoin’s: on September 13, 2018, fees for sending some Litecoins were $0,05 against $0,56 for Bitcoin. These lower fees are possible because of there are more Litecoins and because of the organisation of the mining process.
In a nutshell, Litecoin has some strenghts like fast transactions and low fees which could make it a good coin for small transactions. But, Bitcoin could very well improves its protocol within the next years, whereas Litecoin development is not very active. Litecoin will have to prove its real usecase alongside Bitcoin, despite its presence in the top-10 of the cryptoassets market capitalisation.