{"id":5270,"date":"2023-02-09T15:14:41","date_gmt":"2023-02-09T13:14:41","guid":{"rendered":"https:\/\/kriptomat.cash\/what-is-litecoin-and-how-does-it-work\/"},"modified":"2026-04-14T12:19:08","modified_gmt":"2026-04-14T10:19:08","slug":"what-is-litecoin-and-how-does-it-work","status":"publish","type":"post","link":"https:\/\/kriptomat.hr\/en\/what-is-litecoin-and-how-does-it-work\/","title":{"rendered":"What is Litecoin and how does it work?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"5270\" class=\"elementor elementor-5270 elementor-2442\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2c615b1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2c615b1\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1672fbb\" data-id=\"1672fbb\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ffc511c elementor-widget elementor-widget-heading\" data-id=\"ffc511c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">What is Litcoin (LTC)?<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-08ab374 elementor-widget elementor-widget-text-editor\" data-id=\"08ab374\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Litecoin is a cryptocurrency that was created by the fork of the Bitcoin network in 2011. year. It was created to improve some of the shortcomings that a group of developers noticed in Bitcoin, among which the most important are too small number of transactions per second, which will inevitably lead to expensive transactions, and the possibility of centralization of mining operations, which is already evident in Bitcoin today, given that most of the mining takes place on highly specialized plants (which leads to a certain degree of centralization). Litecoin has successfully solved the problem of too few transactions, given that the number of transactions on Litecoin is approximately 54 transactions per second (tps), which is eleven times more than Bitcoin&#8217;s 5 transactions per second. However, Litecoin has not successfully solved the problem of centralization of mining operations, and with Litecoin most of them takes place in centralized plants. One of the commonly used comparisons for Litecoin and Bitcoin is that of silver and gold. Bitcoin developed as a repository of value (gold in the traditional world), while Litecoin took the position of silver that was more often used in everyday transactions.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-52d3d49 elementor-widget elementor-widget-image\" data-id=\"52d3d49\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"768\" height=\"512\" src=\"https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/02\/adbfdc75-e1c4-4bf4-b6f3-244106ce137a-768x512.jpg\" class=\"attachment-medium_large size-medium_large wp-image-4522\" alt=\"\" srcset=\"https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/02\/adbfdc75-e1c4-4bf4-b6f3-244106ce137a-768x512.jpg 768w, https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/02\/adbfdc75-e1c4-4bf4-b6f3-244106ce137a-300x200.jpg 300w, https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/02\/adbfdc75-e1c4-4bf4-b6f3-244106ce137a-1024x682.jpg 1024w, https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/02\/adbfdc75-e1c4-4bf4-b6f3-244106ce137a.jpg 1450w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6548558 elementor-widget elementor-widget-text-editor\" data-id=\"6548558\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Source: <a href=\"https:\/\/cointelegraph.com\/news\/litecoin-head-fake-rally-ltc-price-technicals-hint-at-65-crash\">cointelegraph<\/a><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9ba75f1 elementor-widget elementor-widget-heading\" data-id=\"9ba75f1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Charlie Lee (creator of Litecoin)<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c419367 elementor-widget elementor-widget-text-editor\" data-id=\"c419367\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tCharlie Lee, a former google engineer, is one of the first creators.\nthe so-called altcoins (a term used for all coins except\nBitcoin). Charlie Lee has created a new hashing algorithm.\nused in Litecoin mining (today and for some others)\ncryptocurrencies such as Dogecoin \u2013 the most famous cryptocurrency meme),\nIt&#8217;s called Scrypt. All proof of work cryptocurrencies that use this\nthe algorithm can be mined together with Litecoin. This allows\nthe miners earn more money than those who only mine one\ncryptocurrency. Another convenience that the Scrypt algorithm allows\nLitecoin is to achieve significantly faster and cheaper transactions compared to\non Bitcoin. In this way, Charlie wanted to get the attention of the owner\ntrades that considered the introduction of Bitcoin as a means of payment,\n\nBut this was impossible due to excessive transaction fees and\ngenerally slow transactions. Over the previous decade Bitcoin\nDevelopers have successfully solved this problem by applying layer\n2 Lightning Network that enables an unprecedented number of transactions\nper second (the exact number is not known, but it is estimated at about one million\ntransaction per second) with a virtually non-existent fee for\nconducting transactions.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-30ca76c elementor-widget elementor-widget-image\" data-id=\"30ca76c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"720\" height=\"480\" src=\"https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/02\/a61a831397042c71259b29e0dbdbbdcc.jpg\" class=\"attachment-medium_large size-medium_large wp-image-4523\" alt=\"\" srcset=\"https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/02\/a61a831397042c71259b29e0dbdbbdcc.jpg 720w, https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/02\/a61a831397042c71259b29e0dbdbbdcc-300x200.jpg 300w\" sizes=\"(max-width: 720px) 100vw, 720px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b72b942 elementor-widget elementor-widget-text-editor\" data-id=\"b72b942\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Source: <a href=\"https:\/\/cointelegraph.com\/news\/dogecoin-adopts-merged-mining-with-litecoin\">cointelegraph<\/a><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ede3ae3 elementor-widget elementor-widget-heading\" data-id=\"ede3ae3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">Litecoin Halving<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b26dff3 elementor-widget elementor-widget-text-editor\" data-id=\"b26dff3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tSimilar to Bitcoin, Litecoin has retained one of the most important\nthe characteristics of inflation on the network. It is, of course, about\nThe adjective is a common theme of all speculators, given that\nafter the reward for the found block is halved, inflation is\nit also halves, and this leads to an increase in price (lower supply, and\nthe same demand). One of the reasons why Litecoin is in the last\nthe time current in crypto communities is just upcoming halving\n\nwhich should take place in the first days of August of this year.\nThis will reduce the reward for the found block from the current 12.5\nLitecoin at 6.25.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3a16911 elementor-widget elementor-widget-image\" data-id=\"3a16911\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"768\" height=\"421\" src=\"https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/02\/halving-768x421.jpg\" class=\"attachment-medium_large size-medium_large wp-image-4525\" alt=\"\" srcset=\"https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/02\/halving-768x421.jpg 768w, https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/02\/halving-300x164.jpg 300w, https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/02\/halving-1024x561.jpg 1024w, https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/02\/halving.jpg 1421w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8a15572 elementor-widget elementor-widget-text-editor\" data-id=\"8a15572\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Source: <a href=\"https:\/\/www.nicehash.com\/countdown\/ltc-halving-2023-08-06-11-00\">https:\/\/www.nicehash.com\/countdown\/ltc-halving-2023-08-06-11-00<\/a><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-80c07d8 elementor-widget elementor-widget-heading\" data-id=\"80c07d8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Litecoin offer<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6d76574 elementor-widget elementor-widget-text-editor\" data-id=\"6d76574\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>As we have previously stated Litecoin shares a number of characteristics with Bitcoin. Both use proof of work to verify transactions on the network, but in addition to the difference in the amount of transactions that the network can process in the given period, there is also a difference in the offer or supply of Litecoin in relation to Bitcoin. Litecoin has a limited supply of 84 million coins, while this is with Bitcoin a well-known 21 million coins. Simple mathematics here tells us that the supply of Litecoin is four times higher than Bitcoin&#8217;s, the cause of this is that Litecoin adds a new block every two and a half minutes in relation to Bitcoin&#8217;s ten minutes, which is exactly four times more common. Another unforgettable difference is that every Bitcoin had to be mined to date (this means that creator Satoshi Nakamoto also had to mine Bitcoins in order to get them) while with Litecoin there were so-called premined coins (150) for which it was not necessary to invest processing power, and therefore electricity, in order for the creator to earn them, but simply appropriated them. When it comes to the current offer, Bitcoin has already successfully unlocked almost 92% of its offer, while with Litecoin this number is 86% of the total supply.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bc4c0f5 elementor-widget elementor-widget-image\" data-id=\"bc4c0f5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"768\" height=\"546\" src=\"https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/02\/ltccijena-768x546.jpg\" class=\"attachment-medium_large size-medium_large wp-image-4526\" alt=\"\" srcset=\"https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/02\/ltccijena-768x546.jpg 768w, https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/02\/ltccijena-300x213.jpg 300w, https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/02\/ltccijena-1024x728.jpg 1024w, https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/02\/ltccijena.jpg 1284w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-754e5c8 elementor-widget elementor-widget-text-editor\" data-id=\"754e5c8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Source: <a href=\"https:\/\/blockworks.co\/price\/ltc\">https:\/\/blockworks.co\/price\/ltc<\/a><\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8065482 elementor-widget elementor-widget-heading\" data-id=\"8065482\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">Litecoin problem<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ae713cb elementor-widget elementor-widget-text-editor\" data-id=\"ae713cb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>One of the problems that has been following Litecoin since 2017. is the fact that Litecoin creator Charlie Lee sold most of his stake in Litecoin, which caused panic among investors. However, a much bigger problem related to Litecoin was the emergence of layer 2 solutions, such as the Lightning Network, on Bitcoin. Layer 2 solutions allowed to increase the number of transactions on the Bitcoin network with negligible transaction fees. There are also newer cryptocurrencies that offer other options besides the value store, and as a bonus they also have a much higher number of transactions per second compared to Litecoin, in addition to cheaper transaction fees.  <\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8c1b826 elementor-widget elementor-widget-heading\" data-id=\"8c1b826\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">The Future of Litecoin<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c27f0bd elementor-widget elementor-widget-text-editor\" data-id=\"c27f0bd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>We have previously seen that Litecoin has successfully solved some problems that were detected early on the Bitcoin network, but on the other hand, a greater number of problems have appeared than expected. Furthermore, with the advent of layer 2 solutions on Bitcoin, users are allowed to exchange coins in short periods of time with non-existent transaction allocations, all while using the most decentralized network with inflation (Bitcoin). The emergence of other cryptocurrencies that offer other opportunities such as building decentralized applications, smart contracts and other things has further contributed to the decline in popularity of Litecoin. What Litecoin certainly has on its side is the fact that it is one of the first cryptocurrencies, and if some novelties appeared on the network itself any time soon that would expand the use of Litecoin, it would certainly allow greater acceptance of this almost forgotten cryptocurrency. If reading has interested you in buying Litecoin, one of the options provided by Kriptomat is to buy and sell this cryptocurrency. With the lowest commissions and the smallest cost of your time, in the simplest way you will buy Litecoin with cash right on our Kriptomats.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>What is Litcoin (LTC)? Litecoin is a cryptocurrency that was created by the fork of the Bitcoin network in 2011. year. It was created to improve some of the shortcomings that a group of developers noticed in Bitcoin, among which the most important are too small number of transactions per second, which will inevitably lead [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11475,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[42,43],"tags":[],"class_list":["post-5270","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-essentials","category-cryptocurrencies"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is Litecoin and how does it work? - Kriptomat<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/kriptomat.hr\/en\/what-is-litecoin-and-how-does-it-work\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is Litecoin and how does it work? - Kriptomat\" \/>\n<meta property=\"og:description\" content=\"What is Litcoin (LTC)? 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