Litecoin

Litecoin is a proof-of-work payment network launched in 2011 as a modification of Bitcoin's codebase, using the Scrypt hashing algorithm, a 2.5-minute block target and a maximum supply of 84 million LTC. It is among the longest continuously operating cryptocurrencies, having never suffered a chain-level failure.

Scrypt was chosen to resist specialised hardware

Scrypt is memory-intensive, which was intended to keep mining accessible to consumer hardware rather than purpose-built machines. Specialised Scrypt miners were eventually built anyway, so the original goal was not achieved — but the algorithm split Litecoin's mining ecosystem from Bitcoin's, which meant the two networks never competed for the same hardware.

Faster blocks, four times the supply

A 2.5-minute block target gives roughly four times Bitcoin's block rate, and the supply cap is likewise four times larger. The halving schedule mirrors Bitcoin's structure. Faster blocks mean quicker initial confirmation and do not change the total work required for equivalent settlement assurance.

A proving ground for Bitcoin changes

Litecoin adopted Segregated Witness and Lightning support ahead of Bitcoin, giving those changes a live network to demonstrate on. Its willingness to deploy first has been a real function within the wider ecosystem, independent of its own market position.

Optional confidential transactions

MimbleWimble Extension Blocks add opt-in confidential transfers, letting users move LTC with amounts and addresses obscured while the main chain remains transparent. Optionality is the design point: privacy is available without being imposed on every user, though opt-in privacy sets carry known anonymity-set weaknesses.

Where it sits

Litecoin's argument is longevity, simple monetary rules and reliable low-cost settlement. It is not a smart-contract platform and does not attempt to be. Its main strategic risk is that faster, cheaper payment rails have proliferated since 2011, which narrows the practical gap it once occupied.