Litecoin, much like Bitcoin, is a cryptocurrency that is a digital payment method using blockchain technology to allow investors to transfer and trade "coins." Litecoin is like bitcoin in many ways, it has a faster block generation rate and hence offers a faster transaction confirmation.
Litecoin was not made to compete against Bitcoin, but instead to act as a complementary payment solution alternative. Think of Litecoin as the silver to Bitcoin’s gold. Litecoin was designed to complement Bitcoin by solving problems like concentrated mining pools and transaction timings.
Charles Lee in 7th Oct 2011
Litecoin is based on blockchain technology, the same as Bitcoin. Litecoin is based on an open-source global payment network that is not controlled by any central authority and uses "script" as proof- of- work, which can be decoded with the help of CPUs of consumer-grade. It borrows the main concepts from bitcoin but has altered some key parameters (e.g., the mining algorithm is based on Scrypt instead of bitcoin’s SHA-265).
Litecoin came from Bitcoin’s core code with some modifications. Charlie Lee modified the code and protocol in the way he considered best in order to achieve large-scale adoption of the currency.
Litecoin has a higher frequency of block generation, which means that the network supports more transactions and benefits from quicker confirmation times.
Litecoin (LTC) is decentralized money, free from censorship and open to all. Send low cost private, secure, borderless payments to anyone, anytime, anywhere. If it happens that your coin is stolen or lost then the money's gone and you can do nothing about it, the client code is not maintained properly and is based on an obsolete Bitcoin version.
Litecoin transactions take around 2.5 minutes while it takes 10 minutes to complete a Bitcoin transaction. This is the reason that it is called the “Lite” coin. Average Litecoin transaction fees are around $0.179 against $1.8 of Bitcoin. time of 2.5 minutes. Litecoin is 4x faster than Bitcoin in this respect.
The maximum number of Litecoins is set at 84 million. That is exactly 4x as much as with Bitcoin.
Mining algorithm Scrypt. Litecoin also uses Proof-of-Work (PoW), but the algorithm is programmed differently. Litecoin Mining (Scrypt) requires more memory than Bitcoin Mining(SHA-256), so Litecoins can often be profitably mined with fast graphics cards instead of highly specialized ASIC miners.
In addition to these core features, active further development at Litecoin is of particular interest. The development is faster and less political than at Bitcoin. SegWit was already activated on Litecoin in May 2017. This step was not as necessary for Litecoin as it was for Bitcoin, as the block size limit for Litecoin was far from being reached. Many advanced technologies connected to Segwit such as the Lightning-Network can now be tested live on Litecoin before they are implemented on Bitcoin.