If Bitcoin is gold, Litecoin aims to be its digital silver.
The famous Bitcoin whitepaper published in 2008 by Satoshi Nakamoto had a very simple title that showed Satoshi’s ultimate vision: “Bitcoin: A Peer-to-Peer Electronic Cash System.” Though digital cash might have been the goal, as bitcoin grew in popularity, its users and fans started to have disagreements on the evolution of the asset.
Some believed bitcoin is a digital investment; others wanted bitcoin to become a transactional currency. In addition, as the network became larger and the number of transactions increased, it took longer and cost more money to sync the Blockchain. A number of proposals to fix these problems were suggested by the community. Bitcoin Cash and Litecoin are some of those plans.
Similar to Bitcoin Cash, Litecoin is based off of (and nearly identical to) Bitcoin except for a few changes meant to make Litecoin a better platform for transactions. Among the key differences is an increased supply and a lower processing time. The time it takes to process a block in the Litecoin Blockchain is 2.5 minutes, compared to Bitcoin’s 10 minutes. In addition, while Bitcoin’s total supply limit is 21,000,000, Litecoin increased that by 4x, making the supply limit 84,000,000.
The developers behind Litecoin claim that these and other changes allow Litecoin faster transaction confirmation compared to Bitcoin.