Litecoin is a peer-to-peer cryptocurrency that was created by Charlie Lee in 2011 as a "lighter" alternative to Bitcoin. It was designed to address some of Bitcoin's limitations, such as transaction speed and scalability, while still maintaining the key features that make cryptocurrencies appealing, like decentralization and security. Litecoin operates on a similar proof-of-work consensus mechanism as Bitcoin but uses a different hashing algorithm called Scrypt, which is more memory-intensive and allows for a faster block generation time of 2.5 minutes compared to Bitcoin’s 10 minutes.
One of the main advantages of Litecoin is its faster transaction times, which make it more suitable for everyday transactions. While Bitcoin is often viewed as a store of value, similar to digital gold, Litecoin positions itself as a more practical alternative for smaller, more frequent transactions. This has led to Litecoin being referred to as the "silver to Bitcoin's gold." With a capped supply of 84 million coins—four times that of Bitcoin—Litecoin also aims to provide a balance between scarcity and availability, making it accessible while still maintaining value.
Get the Plena Super App, and start investing in 100,000+ cryptocurrencies starting with just $1
.webp)
In relation to Plena Finance, while Litecoin operates on its own blockchain and doesn't directly integrate with Ethereum-based DeFi ecosystems, users of the Plena Smart Wallet can still manage and hold Litecoin alongside other supported assets. The wallet’s emphasis on multi-chain compatibility and secure, self-custodial storage makes it a versatile tool for managing various cryptocurrencies, including Litecoin, within a single interface
%201.svg)
