Litecoin is a cryptocurrency that was designed by Charlie Lee in 2011 to provide fast, secure and lowcost payments by leveraging the unique properties of blockchain technology.
Litecoin system is implemented almost identically to the Bitcoin system and shares many features and commonalities with Bitcoin. However, Litecoin differentiates itself from Bitcoin through: (1) cheaper transaction fees, (2) a block time of just 2.5 minutes (instead of 10 minutes for Bitcoin) – resulting in the ability to handle more transactions per second, (3) an increased maximum supply, and (4) a modified proofof-work algorithm with the aim to distribute mining activity more evenly.
Litecoin positions itself as an attractive alternative to facilitate micro-transactions and point-of-sale payments.
Litecoin is often referred to as “digital silver” and in contrast to Bitcoin’s status as “digital gold”.