Litecoin (LTC)

What Litecoin is

Litecoin is a proof of work cryptocurrency that launched in October 2011 and has run continuously since. Its own software describes it as "an experimental digital currency that enables instant payments to anyone, anywhere in the world," operating "with no central authority" through peer-to-peer technology (Litecoin Core README, as of September 2026). Its ticker is LTC.

Litecoin shares most of its architecture with Bitcoin but differs in three consensus parameters that are set in its source code: a different hashing algorithm, a shorter block interval, and a larger coin ceiling.

How it works

Litecoin's proof of work uses Scrypt rather than SHA-256. The block header hash is computed by a function the code calls scrypt_1024_1_1_256, a Scrypt configuration with a 256-bit output (Litecoin Core source, September 2026). Scrypt is memory-hard by design, which historically made it less amenable to the same mining hardware used elsewhere, though purpose-built Scrypt miners have long existed.

Blocks target an interval of 150 seconds, or two and a half minutes, set as nPowTargetSpacing in the mainnet consensus parameters. Difficulty retargets over a nPowTargetTimespan of three and a half days. The practical effect is that a Litecoin transaction reaches a given number of confirmation blocks faster than the same count on a ten-minute chain, though each individual confirmation represents proportionally less accumulated work.

The genesis block carries a timestamp of 7 October 2011 and the message "NY Times 05/Oct/2011 Steve Jobs, Apple's Visionary, Dies at 56," a dated headline embedded to prove the chain was not started earlier.

Litecoin added MimbleWimble Extension Blocks, known as MWEB, an opt-in confidentiality layer. The consensus code sets the MWEB deployment activation height at block 2,217,600, annotated in the source as the end of February 2022, with a timeout height 364 days later. A separate pegout activation is set at height 3,154,440 (Litecoin Core chainparams, September 2026). Users move coins into the extension block to transact with amounts hidden, and back out again to return to the ordinary ledger. It is optional, not the default.

Litecoin Core is released under the MIT license.

Supply and tokenomics

Litecoin's coin issuance follows a halving schedule. The consensus parameter nSubsidyHalvingInterval is set to 840,000 blocks, so the block subsidy paid to miners is cut in half every 840,000 blocks. At a 150-second target interval, that works out to roughly four years per halving, the same cadence as the bitcoin halving on a chain with four times the block rate and four times the interval length.

The consensus code sets MAX_MONEY at 84,000,000 LTC. The comment in the source is worth reproducing accurately: this constant functions as a consensus-critical sanity bound used in validation rather than as a statement of the total that will actually be issued, and the code notes that the real supply is less than the constant "for various reasons." The number that governs actual issuance is the halving schedule, and 84 million is the ceiling it approaches.

New coins reach circulation only through mining rewards, and miners also collect transaction fees. Fees are a function of transaction size and available block space rather than a percentage of the amount sent.

Because Litecoin follows Bitcoin's transaction model, every coin is controlled by a private key and self custody works the same way, including support for hardware wallet devices.

History

Litecoin began in October 2011 with a genesis block referencing a newspaper headline from two days earlier. Its design was a modification of Bitcoin's, not a new architecture: Scrypt in place of SHA-256, 150-second blocks in place of 600, and an 84 million ceiling in place of 21 million.

The project has tracked Bitcoin Core's development closely, adopting upstream improvements while keeping its own consensus parameters. Its most significant independent change is MWEB, activated at block height 2,217,600 with a source annotation dating it to the end of February 2022, followed later by a scheduled pegout activation at height 3,154,440.

Litecoin has gone through multiple subsidy halvings under the 840,000-block schedule, and each has reduced the rate at which new coins enter circulation.

Risks and what to watch

Security budget is the standing question for any proof-of-work chain that is not the largest one using its algorithm. Litecoin's security rests on the cost of the Scrypt hash rate defending it, and that hash rate is smaller in absolute terms than Bitcoin's SHA-256 network. Faster blocks also mean that a given confirmation count represents less accumulated work, which is why exchanges often require more confirmations for LTC deposits than the block interval alone would suggest.

MWEB introduces a specific practical risk that has nothing to do with cryptography. Some exchanges and custodians do not support deposits from MWEB addresses, and moving coins into the extension block can complicate withdrawal to a venue that has not implemented it. Check support before using it.

Confidentiality features also attract regulatory attention. Venues in some jurisdictions have restricted or delisted assets with optional privacy layers, and Litecoin's MWEB has been cited in such decisions. This is a delisting and availability risk rather than a protocol risk. See delisting for the general pattern.

Miner economics change at each halving. When the subsidy falls, less efficient miners become unprofitable and hash rate can shift, which the difficulty adjustment absorbs over its three and a half day retarget window.

Availability of LTC varies by venue and jurisdiction; see where to buy Litecoin and Exchanges.

Frequently asked questions

How is Litecoin different from Bitcoin?

Three consensus parameters differ. Litecoin uses Scrypt for proof of work rather than SHA-256, targets 150-second blocks rather than 600, and sets its consensus coin ceiling at 84,000,000 rather than 21,000,000. It also supports MWEB, an optional confidentiality layer that Bitcoin does not have. The transaction model and self-custody mechanics are otherwise very similar.

How many litecoins will there be?

The consensus code sets MAX_MONEY at 84,000,000 LTC, and issuance approaches that ceiling through a subsidy that halves every 840,000 blocks. The source comment notes that this constant is a validation bound rather than an exact statement of the final supply, which will be slightly below it.

How often does Litecoin halve?

Every 840,000 blocks. With a 150-second block target, that is approximately every four years. The halving cuts the block subsidy paid to miners in half and is fixed in the consensus parameters rather than decided by anyone at the time.

What is MWEB?

MimbleWimble Extension Blocks, an opt-in confidentiality feature activated at block height 2,217,600, annotated in Litecoin's source as the end of February 2022. Coins moved into the extension block can be transacted with amounts concealed, and moved back out to the ordinary ledger afterwards. Support varies by wallet and exchange, so check before sending.

Why does Litecoin use Scrypt?

Scrypt is memory-hard, and Litecoin's block header hash is computed with a Scrypt configuration the code calls scrypt_1024_1_1_256. The original intent of choosing a memory-hard function was to make mining less dominated by the specialized hardware built for SHA-256, though dedicated Scrypt mining hardware exists today.