What is Litecoin?
In 2011, Litecoin was created by a former MIT student and Google employee Charlie Lee. The idea came about when Lee decided to address some of the shortcomings that he saw in Bitcoin.
It is, as the name suggests, a lighter version of Bitcoin and is generally considered to be the silver of cryptocurrency, Bitcoin being the gold, and has been stable at the top among cryptocurrencies since it started.
Bitcoin and Litecoin have a lot in common, on the surface. 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.
Without getting too technical, Litecoin uses a different cryptographic function to encrypt and verify blocks on its blockchain, called Scrypt.
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.
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.