Litecoin

A A A

DEFINITION

Launched in the year 2011, Litecoin is an alternative cryptocurrency based on the model of Bitcoin. Charlie Lee, a MIT graduate and former Google engineer, is Litecoin's creator. Litecoin is based on an open source global payment network that is not controlled by any central authority. Litecoin differs from Bitcoins in aspects like faster block generation rate and use of scrypt as a proof of work scheme. 

INVESTOPEDIA EXPLAINS

Litecoins were launched with the aim of being the "silver" to Bitcoin's "gold," and have gained much popularity since the time of inception. Litecoin is a peer-to-peer internet currency. It is a fully decentralized open source, global payment network. Litecoin was developed with the aim to improve on Bitcoin's shortcomings, and has earned industry support along with high trade volume and liquidity over the years. The broader differences between the two cryptocurrencies are listed in the table below.

 

Bitcoin

Litecoin

Creation

2009

2011

Creator

Satoshi Nakamoto

Charles Lee

Coin Limit

21 Million

84 Million

Block Generation Time

10 Minutes

2.5 Minutes

Algorithm

SHA-256

Scrypt

Initial Reward

50 BTC

50 BTC

Current Block Reward (as of June 2014)

25 BTC

50 BTC

Rewards

Halved every 210,000 blocks

Halved every 840,000 blocks

Difficulty Retarget

2016 Block

2016 Block

Litecoin is designed to produce more coins (Four times that of Bitcoin) and at a faster rate (1/4th of the time of Bitcoin). Overall, Litecoin is seen as second to Bitcoins in value, but Litecoins are more easily obtainable and transactional.


RELATED TERMS
  1. Paper Wallet

    A paper wallet is an offline mechanism for storing Bitcoins. The process involves ...
  2. Altcoin

    Altcoins are alternative cryptocurrencies launched after the success of Bitcoin.
  3. Dogecoin

    Dogecoin is a peer-to-peer open source cryptocurrency and falls under the category ...
  4. MazaCoin

    MazaCoin, a cryptocurrency launched in February 2014, is the official national ...
  5. Peercoin

    Peercoin is an alternative cryptocurrency launched in August 2012 and is based ...
  6. Bitcoin Wallet

    A Bitcoin wallet is a software program where Bitcoins are stored.
  7. Blockchain

    A blockchain is a public ledger of all Bitcoin transactions that have ever been ...
  8. Block (Bitcoin Block)

    Blocks are files where data pertaining to the Bitcoin network is permanently ...
  9. Bitcoin Mining

    Bitcoin mining is the process by which transactions are verified and added to ...
  10. Bitcoin

    A digital or virtual currency that uses peer-to-peer technology to facilitate ...
Related Articles
  1. Winklevoss Interview: Bitcoin Payment ...
    Trading Strategies

    Winklevoss Interview: Bitcoin Payment ...

  2. How do you buy Bitcoins?
    Investing Basics

    How do you buy Bitcoins?

  3. 5 Types Of Bitcoin Early Adopters, Part ...
    Investing Basics

    5 Types Of Bitcoin Early Adopters, Part ...

  4. 5 Ways Early Adopters Can Use Bitcoin, ...
    Investing Basics

    5 Ways Early Adopters Can Use Bitcoin, ...

  5. U.S. Marshals To Auction Off Seized ...
    Investing Basics

    U.S. Marshals To Auction Off Seized ...

  6. Will Bitcoin And Walmart Force Western ...
    Investing News

    Will Bitcoin And Walmart Force Western ...

  7. Why Is Bitcoin's Value So Volatile?
    Investing Basics

    Why Is Bitcoin's Value So Volatile?

  8. Could One Bitcoin Come To Be Worth $1 ...
    Investing Basics

    Could One Bitcoin Come To Be Worth $1 ...

  9. The Easy Way To Measure Bitcoin's Fair ...
    Investing Basics

    The Easy Way To Measure Bitcoin's Fair ...

  10. What Is Bitcoin
    Active Trading

    What Is Bitcoin

comments powered by Disqus
Hot Definitions
  1. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  2. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  3. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  4. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
  5. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
  6. TIMP (acronym)

    'TIMP' is an acronym that stands for 'Turkey, Indonesia, Mexico and Philippines.' Similar to BRIC (Brazil, Russia, India and China), the acronym was coined by and investor/economist to group fast-growing emerging market economies in similar states of economic development.
Trading Center