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Litecoin (simplified as LTC) is a peer-to-peer cryptocurrency as well as a open source software project licensed by MIT/X11. Inspired by bitcoin (BTC), it uses the same implementation principle of technology. Besides, the creation and transferring of LTC are based on a open-sourced encryption protocol, which means it is not administrated by any center. At present, LTC can be exchanged for legal tender and most cryptocurrencies like BTC at online platforms.
Aimed to improve BTC, LTC has three significant differences compared to it:
Firstly, litecoin network can process a block about per 2.5 minutes, thus the transaction and verification of LTC is quicker than those of BTC.
Secondly, the expected output of LTC on litecoin network is 84 million, 4 times the number of BTC issued online.
Thirdly, LTC uses encryption algorithm scrypt which is firstly proposed by Colin Percival in its proof-of-work algorithm, enabling LTC to be mined more easily than BTC on a regular computer (before the invention of mining rig ASIC). Each LTC can be divided into 100,000,000 smaller units and defined by eight-digit decimal.