How does Litecoin compare to Bitcoin?

Quickbit

On the surface, Bitcoin and Litecoin have a lot in common. If you’re a user or an investor, the differences are negligible and most likely won’t affect you, but are worth keeping in mind.

Speed

While Litecoin is based on the same open-source code that builds Bitcoin, the speed of transactions and scalability is what Charlie wanted to address when creating Litecoin. A litecoin takes roughly 2.5 minutes from Sent to Received, no matter where in the world the recipient is located. For Bitcoin the mean transaction time is 10 minutes.

Higher max token supply

This is one of the bigger differences between the two currencies, but the effect of it is minor. The reason is that cryptocurrencies can be divided almost indefinitely. The total supply of coins doesn’t have the same effect when each coin can be divided a million times.

Market capitalization

Bitcoin has at the time of writing a market capitalization of just over $170 million, Litecoin is sitting just below $3 million, putting it at #7 out of almost 5600 currencies.

Different encryption algorithms

On the technology side, Litecoin uses a different cryptographic function to encrypt and verify blocks on its blockchain, called Scrypt. In short, Scrypt is a more lightweight method, using more memory than processor power compared to SHA256, being more processor intensive.

Was this helpful?

Sign up for early access

By signing up you confirm that you have read and consent to Quickbit's GDPR policy