Crypto 101 · Coins
What Is Litecoin? Faster Blocks, 84 Million Coins and Scrypt
Abstract
Litecoin launched in 2011 as a lighter version of Bitcoin: blocks arrive every 2.5 minutes, the total supply is about 84 million coins, and mining uses the Scrypt algorithm. We explain what that means in plain terms, show live Litecoin statistics, and connect it to Dogecoin through merged mining.
Keywords: Litecoin, LTC, Scrypt, 84 million, merged mining
1. In plain English
Litecoin is one of the oldest cryptocurrencies after Bitcoin. Its creator announced it in October 2011 as a lighter version of Bitcoin: the same basic idea, with three deliberate changes. Blocks come every 2.5 minutes instead of 10, so payments confirm faster. The total supply is about 84 million coins instead of 21 million. And it is mined with a different puzzle called Scrypt [1].
2. What that means for you
Faster blocks mean you wait less for the first confirmation of a payment. A larger supply just means the individual coin is priced lower for the same total value; it does not by itself make Litecoin cheaper or more valuable. Scrypt matters mostly for miners: it uses different hardware from Bitcoin, and the same hardware can also mine Dogecoin, which is why the two can be mined together.
3. Go deeper: the schedule
Litecoin's source code sets the halving interval to 840,000 blocks and the target block spacing to 2.5 minutes [2], which puts a halving roughly every four years, like Bitcoin's. The Scrypt algorithm was designed by Colin Percival as a key-derivation function that is expensive in memory as well as computation [3, 4]. The full table of Litecoin's issuance is in Litecoin tokenomics. Litecoin also has an optional privacy extension, MWEB, described in its improvement proposals [5].
4. Merged mining with Dogecoin
Because Litecoin and Dogecoin both use Scrypt, a miner can submit one proof of work that counts for both chains through auxiliary proof of work [6, 7]. That shares security between the two coins; the mechanics are in merged mining explained.
5. Key facts
Table 1. Litecoin at a glance.
| Fact | Value |
|---|---|
| Announced | October 2011 [1] |
| Consensus | Proof of work (Scrypt) |
| Target block time | 2.5 minutes [2] |
| Halving | Every 840,000 blocks (about four years) |
| Maximum supply | About 84 million |
6. Litecoin and Bitcoin in one sentence
Litecoin keeps Bitcoin's basic design and trades a bit of decentralised history for speed and cheaper units: shorter blocks, more coins, a different mining puzzle. It is often used for payments and, for miners, as the anchor of Scrypt merged mining.
7. In Scrypt Wallet
Scrypt Wallet supports Litecoin natively: send, receive and check the live price and chart. Start from the Litecoin price page, the Litecoin wallet page, or the Litecoin mining guide.
References
- Lee, C. (coblee) (2011). [ANN] Litecoin - a lite version of Bitcoin. Launched!. Announcement thread, Bitcointalk, 9 October 2011. https://bitcointalk.org/index.php?topic=47417.0
- Litecoin Project (2011). chainparams.cpp. Litecoin Core source code: main-net consensus parameters (halving interval 840,000; 2.5-minute target spacing). https://github.com/litecoin-project/litecoin/blob/master/src/chainparams.cpp
- Percival, C. (2009). Stronger Key Derivation via Sequential Memory-Hard Functions. BSDCan 2009; the paper that introduced scrypt. https://www.tarsnap.com/scrypt/scrypt.pdf
- Percival, C., & Josefsson, S. (2016). RFC 7914: The scrypt Password-Based Key Derivation Function. IETF RFC. https://www.rfc-editor.org/rfc/rfc7914
- Litecoin Project (2021). Litecoin Improvement Proposals (LIPs). Repository of Litecoin improvement proposals, including the MimbleWimble Extension Blocks (MWEB) specifications. https://github.com/litecoin-project/lips
- Bitcoin Wiki contributors (2011). Merged mining specification. Bitcoin Wiki: how one proof of work can secure more than one chain (auxiliary proof of work). https://en.bitcoin.it/wiki/Merged_mining_specification
- Dogecoin Core developers (2013). chainparams.cpp. Dogecoin Core source code: 60-second target spacing; AuxPoW (merged mining) effective from block 371,337. https://github.com/dogecoin/dogecoin/blob/master/src/chainparams.cpp
Common questions
How many Litecoin will there ever be?
About 84 million, four times Bitcoin's supply, because the halving interval is four times as many blocks.
Is Litecoin faster than Bitcoin?
Its target block time is 2.5 minutes versus about 10 for Bitcoin, so payments get their first confirmation sooner.
General education, not financial, tax or legal advice. Figures are schematic. Protocol parameters are cited to primary sources and can change; verify against the linked source before relying on them.