Stepping into the world of cryptocurrencies may seem daunting, but understanding some basic cryptocurrencies makes this journey much easier. If we accept Bitcoin as the pioneer of digital gold, Litecoin (LTC), which comes right after it and is called "digital silver", is definitely an important project to know. So, what is Litecoin? What is the story and technology behind this cryptocurrency? Let's explore it together.
Definition and Origin of Litecoin
Litecoin is an open-source cryptocurrency developed in 2011 as an alternative to Bitcoin. It was created by Charlie Lee, a former Google engineer. Since Litecoin is derived from Bitcoin's open source code, it shares a slightly modified version of Bitcoin's main chain in technical details.
Litecoin's goal was to be a cryptocurrency that could be used for daily payments with faster transaction times and lower fees. Its founder, Charlie Lee, stated that he initially designed Litecoin not to compete with Bitcoin, but to complement it. This vision is often summarized with the metaphor: “Where Bitcoin is digital gold,” Litecoin is described as “digital silver.” This implies that Litecoin may not be as valuable as Bitcoin, but it will still hold its own as a payment method and be more widely used.
Litecoin’s underlying technology is based on Bitcoin’s open source code. This means that Litecoin, like Bitcoin, is a decentralized, peer-to-peer internet currency. It is not controlled by any central authority or financial institution. The network is secured with mathematical algorithms, allowing individuals to control their own finances.
Litecoin’s emergence aimed to provide a solution to some of the problems experienced in Bitcoin mining. At that time, Bitcoin mining required powerful graphics cards (GPUs). This both increased the cost and made it difficult for ordinary users to mine. To overcome this problem, developers began to develop new solutions based on Bitcoin’s code. One of these initiatives, Tenebrix, used a different and hardware-challenging algorithm called “scrypt” instead of Bitcoin’s SHA-256 algorithm. Scrypt was specifically designed to reduce the advantage of custom-made mining devices (FPGA and ASIC). Later, Charlie Lee developed Litecoin based on Fairbrix, a derivative of Tenebrix. While Litecoin took the scrypt algorithm from Fairbrix, it adopted Bitcoin’s limited supply model and made its own way with some technical adjustments. Therefore, the answer to the question of what is LTC coin is quite simple: Litecoin is a decentralized cryptocurrency based on Bitcoin’s code, but stands out with some fundamental differences such as faster transactions and a different mining algorithm. These fundamental similarities and differences with Bitcoin make the coin an early Bitcoin alternative coin. It is also considered one of the most important altcoins in terms of market value. Because it has managed to stay in the top 20 in the crypto market for years (although it is ranked 21st as of May 2025).
Litecoin being referred to as “digital silver” clearly reveals its relationship with Bitcoin and its place in the crypto market. Just as gold and silver are both precious metals and have different areas of use, Bitcoin and Litecoin have a similar relationship. While Bitcoin stands out in terms of security and robustness, Litecoin is designed for faster and lighter transactions. This makes it more suitable for daily expenses and small transfers.
Litecoin offers shorter transaction confirmation times compared to Bitcoin and has a more efficient structure in terms of data. At the same time, it is positioned as a reliable payment alternative thanks to its strong industry support, high transaction volume and sufficient liquidity. It works as a complementary tool to Bitcoin and has gained a solid place in the sector in this respect.
To summarize briefly: Litecoin is a decentralized and open-source cryptocurrency developed by Charlie Lee using Bitcoin's code infrastructure, aiming to provide faster and lower-cost transactions.
Litecoin History: Important Milestones
Litecoin, also known as the "digital silver coin", has gained a unique position by pioneering many technological developments over time. Here are the important milestones in Litecoin's history:
2011 – Litecoin release date and creation
Litecoin was developed by Google engineer Charlie Lee in 2011. In response to the question of who Charlie Lee is, he stands out as a software engineer who had become interested in Bitcoin at that time. In October 2011, while working at Google, he developed Litecoin using Bitcoin-based blockchain technology in his spare time and announced it on the Bitcointalk forum. The answer to the question of who founded Litecoin becomes clear here. After initially mining only 150 LTC coins, he made the project public. The infrastructure determined during this period, including some technical features such as Litecoin block time, took shape with the mining of the first (genesis) block on October 7, 2011, and the network officially went live on October 13, 2011. The basic answer to the question of what is Litecoin took shape with the steps taken during this period. Its codes were shared as open source on GitHub.
2013 – First major rally and community formation
Litecoin experienced its first major price increase in 2013. This growth was supported by increased liquidity and trading volume on early cryptocurrency exchanges such as BTC-e. In November, the LTC coin price attracted attention by increasing by more than 100% in just 24 hours. In July of the same year, Charlie Lee left Google to join Coinbase. Lee served as the company’s Director of Engineering before Litecoin was listed by Coinbase.
2017 – Litecoin SegWit support and technological pioneering
Litecoin became the first major cryptocurrency to implement Segregated Witness (SegWit) technology in 2017. Litecoin SegWit support was considered an important step in testing the feasibility of potential updates to the Bitcoin network. SegWit aimed to increase transaction capacity and reduce transaction hashes by separating digital signature data from the content of blocks. Litecoin’s successful integration of this update contributed to Bitcoin’s subsequent adoption of SegWit. These changes also paved the way for the integration of second-layer solutions like the Lightning Network. The Litecoin Lightning Network integration was completed in 2018.
2019–2022 – Litecoin privacy features and MWEB update
Mimblewimble Extension Block (MWEB) and Taproot updates were announced to increase Litecoin’s privacy and scalability. These developments brought significant changes to Litecoin’s technical specifications. These updates, released on January 31, 2022, were activated on the network with a soft fork on May 20, 2022. MWEB provided optional privacy, ensuring that the amount of LTC coins sent and address information in transactions made via extension blocks were not publicly available. Taproot was previously activated in Bitcoin on November 14, 2021. However, Litecoin privacy features were specifically strengthened with this update.
2023–2025: Ongoing developments and adaptation
The question of what Litecoin is for gained a clearer answer in the 2023–2024 period. Offering an ideal solution for daily payments, fast transfers, and privacy-focused transactions, Litecoin is still supported by an active developer community as of May 2024. During this period, crypto assets similar to Runes on the Bitcoin network were also integrated into Litecoin. Thus, the difference between Bitcoin and Litecoin began to diverge not only in transaction times but also in terms of technological experimentation areas. In addition, in 2020, PayPal users gained the opportunity to buy and sell several major cryptocurrencies, including Litecoin, through the platform. In 2022, this functionality was expanded to allow Litecoin to be transferred between exchanges and wallets via PayPal. Today, many third-party providers offer point-of-sale (POS) solutions for Litecoin. Although Litecoin was launched two years after Bitcoin, it has carved its own path in the crypto world and has become a pioneer in many areas. Litecoin, which is still a strong option for users looking for an alternative coin to Bitcoin, has a permanent place in the crypto ecosystem both historically and technologically. The fact that it has been in the market for a long time and has survived the "crypto winters and summers" experienced in different periods shows that the support for LTC is solid.
What is the difference between Bitcoin and Litecoin?
This evolution that Litecoin has gone through over the years has brought it to a position where it is frequently compared to Bitcoin. Although both cryptocurrencies are built on similar foundations, they have significant differences in terms of their purposes of use and technical structures.
Feature | Bitcoin (BTC) | Litecoin (LTC) |
Purpose | Store of value (digital gold) | Usability for daily payments |
Maximum Supply | 21 million BTC | 84 million LTC |
Block Time | ~10 minutes | ~2.5 minutes |
Mining Algorithm | SHA-256 | Scrypt |
Halving Cycle | Every 210,000 blocks (~every 4 years) | Every 840,000 blocks (~every 4 years) |
Initial Release Year | 2009 | 2011 |
Developer/Founder | Satoshi Nakamoto | Charlie Lee |
SegWit Support | Added in 2017 | First major coin to implement it in 2017 |
Lightning Network | Integrated | Integrated before Bitcoin |
Privacy Features | Basic, all transactions are publicly visible | Optional privacy with MWEB (MimbleWimble Extension Blocks) |
General Description | Store of value, investment | Optimized for fast and low-cost payments |
Why is Litecoin Valuable?
There are many factors that determine the value of a cryptocurrency: factors such as technological infrastructure, area of use, adoption rate, network security and community support affect the long-term success of the project. In other words, Litecoin's value is shaped by the technical innovations it offers and the differences it brings compared to Bitcoin.
One of the main advantages of Litecoin is that it offers a faster and more efficient transaction infrastructure. The block creation time that stands out among Litecoin's technical features is only 2.5 minutes compared to Bitcoin's 10 minutes. In this way, transactions made on the Litecoin network are confirmed approximately four times faster than Bitcoin. This speed provides great convenience, especially for daily payments and small-scale transfers. In larger transactions, users can optionally continue to wait for more confirmations.
Litecoin also stands out with its low transaction fees. For example, while transactions made with Bitcoin can sometimes cost tens or even hundreds of dollars, this fee is usually less than a few cents on the Litecoin network. This feature provides a clear answer to the question of what Litecoin is for in terms of daily use: it is an ideal digital currency for fast, cheap and accessible payments.
Security is provided by PoW
In terms of security, Litecoin offers a network that has been working smoothly and successfully protected for years. Like Bitcoin, LTC also uses the Proof-of-Work (PoW) mechanism. Miners use computing power to verify transactions and produce new blocks. This process is critical to maintaining the integrity of the network and preventing double spending.
LTC is on many exchanges
Extensive adoption rate and accessibility are also factors supporting Litecoin's value. It is known that Litecoin is traded on many major cryptocurrency exchanges. Platforms such as Coinbase, Kraken, Binance, Binance.US, Robinhood, and Gemini allow Litecoin to be bought and sold. In addition, thanks to various wallet options such as Litecoin Core, Litewallet, and Electrum Litecoin, users can use Litecoin on different devices and platforms. Mobile compatibility is another advantage that supports the user experience.
Litecoin's native coin LTC adds value to the network
Market value and liquidity are also indicators of Litecoin's value. As of May 2025, Litecoin (LTC) is trading at $ 89.29. However, this price remains approximately 78% below its all-time high of $ 412.96 reached in 2021. Recently, Litecoin has established a strong support level around $ 100 and has tested this level several times.
From the supply side, the supply of LTC coins is limited to 84 million. This means four times Bitcoin's supply of 21 million. Litecoin's new coin production is done through mining and rewards are distributed with each block. However, this reward is halved every 840,000 blocks. The most recent halving event took place on August 2, 2023, and the reward dropped from 12.5 LTC to 6.25 LTC. The next halving is expected to occur in mid-2027, and the reward will drop to 3.125 LTC. This system aims to establish a long-term balance in value by reducing the supply over time. As it is known, Bitcoin also has a halving system.
As a result, Litecoin's value comes from elements such as faster transaction times, low transaction fees, advanced technology solutions such as SegWit and Lightning Network, strong network security, widespread exchange support, and a limited supply structure. All these features make Litecoin a strong Bitcoin alternative coin and digital silver coin for both investors and users.
Who is the Founder of Litecoin?
Behind every major technology initiative is a visionary person or team. The answer to the question of who founded Litecoin is Charlie Lee, one of the pioneers in this field. So, who is Charlie Lee? Charlie Lee is an American computer engineer who created Litecoin. Born in Ivory Coast, Lee moved to the United States when he was 13. He graduated from high school in 1995 and then completed both his bachelor's and master's degrees in computer science at MIT (Massachusetts Institute of Technology), one of the most prestigious universities in the world, in 2000. His technical competence in this field was one of the main factors that led him to blockchain and cryptocurrency technologies at an early age. Charlie Lee's brother Bobby C. Lee is also a well-known name in the cryptocurrency world and is the founder and CEO of the exchange BTC China. Charlie Lee worked at Google for about ten years before entering the cryptocurrency field. During his tenure at Google, he took part in projects such as ChromeOS and developed his engineering skills in this field. In 2011, his interest in Bitcoin deepened and he developed Litecoin with the idea of creating his own digital currency in his spare time. Thus, 2011 was recorded as the release date of Litecoin.
Charlie Lee is a very influential and well-known figure in the cryptocurrency community. However, a decision he made in December 2017 caused a great repercussion: he announced that he was selling and donating all of his LTC coin assets. He said that he explained this decision with the idea that his impact on Litecoin would not create a perception of price manipulation and his commitment to the principle of decentralization. He stated that he took such a step in response to criticism that his comments on social media could have an impact on the price of LTC coin. He stated that he had no coins left except for a few Litecoins that he had printed in physical form after the sale. Later, he said that he did not think this decision was right in the long run.
Today, Charlie Lee works full-time with the Litecoin Foundation and advises the project. The Foundation is a non-profit organization that promotes Litecoin adoption and supports its technological development. In short, Charlie Lee's creation of Litecoin and his contributions over the years have made him one of the leading figures in the cryptocurrency world.
Frequently Asked Questions (FAQ)
Below you can find frequently asked questions and answers about the well-established altcoin Litecoin:
- What is Litecoin and how is it different from Bitcoin?: Litecoin is an open-source cryptocurrency developed by Charlie Lee in 2011. It works similarly to Bitcoin, but is distinguished by its faster transaction times, lower fees, and use of a different mining algorithm (Scrypt).
- Is LTC coin suitable for investment?: LTC coin is a reliable project that has been on the market for a long time. It is one of the preferred alternatives in terms of investment with its low transaction fees and active developer support. However, as with every crypto investment, it involves risk.
- How fast is Litecoin?: The block time in Litecoin is about 2.5 minutes, which means it offers transaction confirmations about four times faster than Bitcoin.
- Which wallets support LTC?: Litecoin is supported by many software and hardware wallets such as Litecoin Core, Litewallet, Electrum-LTC, Trust Wallet, and Ledger.
- Does Litecoin have a privacy feature?: Yes, Litecoin started offering an optional privacy feature with the MWEB (Mimblewimble Extension Block) upgrade in 2022. This allows transaction amounts and addresses to be hidden.
- Is LTC supply limited?: Yes, the LTC coin supply is limited to 84 million. The supply control is supported by the halving mechanism that occurs approximately every four years.
Don't forget to follow our JR Kripto Guide series to learn about the most established projects in the history of Litecoin and cryptocurrencies!
