Litecoin is a decentralised peer-to-peer cryptocurrency and open-source software project that was released under the MIT/X11 license. It was launched in 2011 by Charlie Lee, who intended to create a cryptocurrency that offered faster transaction times and lower fees compared to Bitcoin.
Litecoin operates on a blockchain network, which records all transactions in a public ledger. It employs a Proof of Work consensus mechanism using the Scrypt hashing algorithm. This makes mining accessible and promotes decentralisation. Litecoin transactions are processed in blocks every 2.5 minutes, significantly faster than Bitcoin's 10-minute block time. Additionally, Litecoin supports smart contracts via the OmniLite platform.
Litecoin can be used for various applications including digital payments, e-commerce, and retail transactions. It also serves as an investment tool, often used to diversify portfolios. Additionally, Litecoin finds use in decentralised finance (DeFi) applications, donations, cross-border remittances, and integrates with payment processors, enhancing its adoption in the marketplace.
Litecoin was founded by Charlie Lee and was launched in October 2011. It was designed to be a "lite version" of Bitcoin, focused on ensuring faster transactions and greater accessibility for miners. Over the years, Litecoin has grown in transaction volume and market adoption, reaching notable milestones like achieving more than five million long-term holders by 2024. Despite the emergence of forks such as Litecoin Cash, the original Litecoin continues to evolve with features like the OmniLite platform for smart contracts.