What Is Litecoin?
Just like any other cryptocurrency, Litecoin (LTC) is a global, digital payment method that uses blockchain technology to facilitate the transfer and trading of “coins”. Litecoin however, uses its own blockchain to allow for faster transaction or transfer speeds. Litecoin’s software is open source and decentralized.
What are the differences?
Litecoin Mining and Bitcoin Mining
One of the primary differences between Litecoin and Bitcoin is the different cryptographic algorithms they employ. Bitcoin uses a traditional SHA-256 algorithm, while Litecoin uses an algorithm known as Scrypt. These affect the speed at which each respective coin is mined. Litecoin’s algorithm is designed to generate about four times as many coins as Bitcoin does – producing one coin every 2.5 minutes (Bitcoin produces one every 10 minutes). Therefore, the main difference is in terms of speed.
Transactions for both coins can take a long time to be confirmed on the blockchain. Bitcoin transactions are generally confirmed once every 10-11 minutes or so. LTC transactions on the other hand, are much faster with confirmations about once every 2.5 minutes.