Litecoin
Crypto Overview
Understanding the Intended Utility
Litecoin was created in 2011 by Charlie Lee as a peer-to-peer cryptocurrency intended to be a 'lighter' version of Bitcoin, with faster transaction speeds and lower fees. It was designed to be a complementary payment network to Bitcoin, often referred to as 'digital silver' to Bitcoin's 'digital gold'.
Core Features and Technology
Litecoin operates on a proof-of-work consensus mechanism, using the Scrypt hashing algorithm instead of Bitcoin's SHA-256. This was deliberately chosen to make mining more accessible to individual miners. The network processes blocks every 2.5 minutes (compared to Bitcoin's 10 minutes) and has a maximum supply of 84 million coins.
Current Usage and Adoption
Litecoin maintains significant real-world adoption as a payment method, with the Litecoin Foundation actively pursuing merchant adoption. The network consistently processes hundreds of thousands of transactions daily. Notable developments include the implementation of SegWit and atomic swaps, enhancing its utility for cross-chain transactions.
Token Distribution and Founder Involvement
Charlie Lee notably sold his entire LTC holdings in 2017 to avoid conflicts of interest, demonstrating a commitment to the project's decentralization. The initial distribution was fair, with no pre-mine or ICO. Mining rewards are distributed to miners securing the network, following a halving schedule similar to Bitcoin's.
Development Activity
The Litecoin Core development team remains active, implementing technological improvements such as MimbleWimble Extension Blocks (MWEB) for enhanced privacy features. The project maintains an open-source development approach with regular updates and improvements.
Crypto Impact
To assign a comfort level investing in Litecoin from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Litecoin.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.