Litecoin (LTC) is a peer-to-peer cryptocurrency created by Charlie Lee that operates on a decentralized blockchain, aiming to provide fast and low-cost transactions.
Litecoin, often referred to as "silver to Bitcoin's gold," is one of the earliest cryptocurrencies and was created in 2011. It shares several similarities with Bitcoin but distinguishes itself through a few key features. Litecoin's blockchain uses a different hashing algorithm called Scrypt, making it more accessible for individual miners using consumer-grade hardware.
Litecoin aims to address some of Bitcoin's perceived limitations, such as faster transaction times and lower transaction fees. Due to its faster block generation time and the ability to handle a higher number of transactions per second, Litecoin is often used for day-to-day transactions and small payments.
Example: Alice wants to send some funds to her friend Bob as a birthday gift. She chooses to use Litecoin for the transaction due to its lower fees and faster confirmation times. Alice sends the LTC to Bob's Litecoin address, and the transaction is quickly confirmed, allowing Bob to access the funds promptly.