Litecoin (LTC)

Rank #27

Litecoin (LTC) is a decentralized peer-to-peer cryptocurrency created for fast payments, with near-zero costs, between individuals and merchants on a global scale. The network operates as an open system, without reliance on central banks or intermediaries, and aims to offer a digital asset with a fixed maximum supply of 84 million tokens.

How Litecoin works

Litecoin operates with Proof of Work, in which computers solve complex puzzles to confirm transactions and secure the blockchain. The block generation time is 2.5 minutes, which contributes to faster confirmations and greater total processing capacity.

Technology and security

Among its technical features, the network uses the Scrypt hashing algorithm to help with the participation of network participants. In addition, Litecoin incorporates MimbleWimble Extension Blocks, aimed at improving privacy by allowing transaction details to be hidden.

What LTC is used for

In practical use, LTC is intended for settling global payments and microtransactions, processed in smaller units called litoshis. As it is highly liquid, it is also used to diversify digital portfolios, while maintaining a focus on payment functions.

Supply, mining, and governance

New tokens are issued as rewards to miners who verify blocks, with halving approximately every four years to control inflation. The ledger is immutable, as records cannot be changed after being recorded on the global network.

Origin of the project

Litecoin was created by Charlie Lee, a former Google engineer, and is supported by the Litecoin Foundation, a nonprofit organization focused on ecosystem adoption. The project is maintained by a decentralized community of independent developers and by a global network of miners.