Litecoin (LTC) is one of the earliest cryptocurrencies based on modified Bitcoin code, and it has been running for more than a decade. Its creator, Charlie Lee, was a Google engineer at the time and developed the project in his spare time.

$LTC has a maximum supply of 84 million coins, exactly four times that of Bitcoin. Current: 59.36 (24h -3.32%).

▍A side project by a Google engineer

In October 2011, Charlie Lee, who was working at Google at the time, released Litecoin’s open-source client on GitHub. He described Litecoin as “the lightweight version of Bitcoin,” and used the analogy “Bitcoin is gold, Litecoin is silver” to explain how the two relate.

Litecoin was originally based on Bitcoin’s code, with three main changes: block time, mining algorithm, and total supply.

▍How It Differs from Bitcoin

Litecoin targets a block time of about 2.5 minutes, one-quarter of Bitcoin’s; it uses the Scrypt mining algorithm; and its supply is capped at 84 million coins, exactly four times Bitcoin’s. The block reward is halved every 840,000 blocks, roughly once every four years.

Faster block times mean a transfer can receive its first confirmation sooner. However, for large transfers, people typically wait for several more confirmations before considering them complete.

▍A Testing Ground for New Technology

Litecoin is often seen as a “testing ground” for new Bitcoin technologies. In May 2017, Segregated Witness (SegWit) was activated on Litecoin first; it was activated on Bitcoin in August of the same year.

In 2022, Litecoin also activated the MWEB (Mimblewimble Extension Blocks) upgrade, offering users the option to make private transactions.

▍The Foundation

Starting in 2017, Charlie Lee devoted himself full-time to the Litecoin Foundation, promoting Litecoin and supporting its development. For a project that has been running for more than a decade, having people consistently maintain the code and advance upgrades is no small feat.

▍A Final Note

LTC has a long history and clear rules, but being an established coin doesn’t mean its price is less volatile. Halving simply reduces the amount of new supply. Even after learning the rules, size your position according to the volatility you can handle. Ideally, only invest money you can afford to lose.

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