Litecoin (LTC) is an altcoin founded in 2011 by former Google engineer Charlie Lee. It aimed to be the lite version of Bitcoin that enables nearly instant and low-cost payments. Litecoin adopted the code and certain features of Bitcoin in its blockchain, but it prioritizes transaction confirmation speed to facilitate a higher transaction per second (TPS) and a shorter block generation time.
Due to its similarity with Bitcoin, the Litecoin blockchain has been used as a testing ground for developers to experiment with technologies they want to implement on Bitcoin. For example, Segregated Witness (SegWit) and Lightning Network were run on the Litecoin blockchain before Bitcoin.
Litecoin has a total supply of 84 million. Similar to Bitcoin, it is deflationary in nature and halves every 840,000 blocks (approximately every 4 years). The next halving is expected to happen in August 2023. Litecoin can be purchased on various cryptocurrency exchanges, including Binance.
Litecoin (LTC) is one of the oldest of all altcoins on the market. When it was first introduced in 2011, Litecoin was branded as “the silver to bitcoin’s gold” for its blockchain was largely based on Bitcoin’s code. While some crypto investors view Bitcoin as a good store of value, Litecoin is often seen as a better option for peer-to-peer payments due to its lower confirmation time and transaction fees.
What is Litecoin (LTC)?
Litecoin has a limited total supply of 84 million. Similar to Bitcoin, Litecoin can be obtained from mining and has a halving mechanism that occurs every 840,000 blocks (roughly 4 years). The last LTC halving was in August 2019, where the block rewards were halved from 25 LTC to 12.5 LTC. The next halving is expected to take place in August 2023.
How does Litecoin work?
As a modified version of Bitcoin, Litecoin was designed to facilitate cheaper and more efficient transactions than the Bitcoin network. Like Bitcoin, Litecoin adopts the Proof of Work mechanism to enable miners to earn new coins by adding new blocks to its blockchain. However, Litecoin doesn’t use Bitcoin’s SHA-256 algorithm. Instead, LTC uses Scrypt, a hashing algorithm that can generate new blocks roughly every 2.5 minutes, while the Bitcoin block confirmation time takes 10 minutes on average.
Litecoin Use Cases
As one of the first altcoins, Litecoin improved upon Bitcoin’s code to increase its scalability for faster transactions and lower fees. Despite not being able to compete with Bitcoin in terms of market cap, it has a competitive advantage as a peer-to-peer payment system. In fact, the Litecoin Foundation announced in November 2021 that LTC could be used as a payment method via the Litecoin VISA debit card by converting LTC into USD in real-time. In addition, certain businesses have added Litecoin as a payment method, spanning across travel companies, convenience stores, property agencies, and online stores.
How to buy Litecoin on Binance?
1. Log in to your Binance account and go to [Trade]. Choose either the [Classic] or [Advanced] trading mode to start. In this tutorial, we will select [Classic].
2. Next, type “LTC” on the search bar to see a list of the available trading pairs on Binance. We will use LTC/BUSD as an example.
Litecoin has shown an ongoing development effort to be “the silver to bitcoin’s gold” since its debut in 2011. While it isn’t as popular as Bitcoin or Ethereum (ETH) in terms of market capitalization, the Litecoin community is expecting further development that can bring enhanced features and use cases.