How does Litecoin work?

Litecoin is a decentralized, open-source payment network that is powered by its users with no central authority or middlemen.

It is a peer-to-peer Internet currency that enables instant, near-zero cost payments to anyone in the world. Litecoin works by using a cryptographic protocol called the "Scrypt" algorithm. This algorithm is designed to make it more difficult for miners to generate new coins and also to prevent double spending of coins.

The Scrypt algorithm also makes it more difficult for miners to use specialized hardware to mine Litecoin, which helps keep the network secure and decentralized. When someone sends Litecoins, they are broadcasted to the network and recorded in a public ledger called the blockchain. This blockchain contains all of the transactions that have ever taken place on the Litecoin network.

The blockchain is secured through a process called mining, which involves computers competing against each other to solve complex mathematical problems in order to validate transactions and add them to the blockchain. Miners are rewarded with newly created Litecoins for their efforts. The Litecoin network also uses SegWit (Segregated Witness) technology, which helps reduce transaction fees and speeds up transaction processing times by separating signature data from transaction data on the blockchain.

This allows more transactions to be processed at once, making it faster and cheaper for users to send Litecoins around the world.