Litecoin

AAA

DEFINITION of 'Litecoin'

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 'Litecoin'

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. Bitcoin Mining

    Bitcoin mining is the process by which transactions are verified ...
  2. Paper Wallet

    A paper wallet is an offline mechanism for storing Bitcoins. ...
  3. Altcoin

    Altcoins are alternative cryptocurrencies launched after the ...
  4. Dogecoin

    Dogecoin is a peer-to-peer open source cryptocurrency and falls ...
  5. MazaCoin

    MazaCoin, a cryptocurrency launched in February 2014, is the ...
  6. Peercoin

    Peercoin is an alternative cryptocurrency launched in August ...
Related Articles
  1. The Easy Way To Measure Bitcoin's Fair ...
    Investing Basics

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

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

    Will Bitcoin And Walmart Force Western ...

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

    Why Is Bitcoin's Value So Volatile?

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

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

Hot Definitions
  1. Return On Sales - ROS

    A ratio widely used to evaluate a company's operational efficiency. ROS is also known as a firm's "operating profit margin". ...
  2. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  3. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  4. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  5. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  6. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
Trading Center