How does Litecoin work?
New coins are created by mining, with new coins being issued as a reward to miners who dedicate their hardware to maintain the Litecoin blockchain. This reward is set to a specific amount per block mined (currently at 12.5 LTC), and is halved every fourth year up until the total supply of 84 million litecoins has been mined.
For the user, there is little difference between Bitcoin and Litecoin. It is intended to be used in the same way as a payment coin and is built as an online transaction system.