When considering the question of what litecoin is used for it should be emphasized that Litecoin is a transactional cryptocurrency. In this subsection of the Leo Finance Litecoin Coin Guide, we will provide you with the ultimate answer to the question at hand, and then provide an explanation behind this answer.
Litecoin is an open-source decentralized platform that has as its primary purpose permitting its users to transact payments in the absence of third party intermediaries. To accomplish this use case, Litecoin was created to be an improvement to Bitcoin - in fact it is often stressed that Litecoin was never intended to be a competitor with Bitcoin, but rather, a complement to Bitcoin.
That being said, stay tuned as next we investigate just how Litecoin was intended to improve Bitcoin.
Bitcoin was innovative, but it became slow and expensive. The creator of Litecoin, Charlie Lee, recognized the potential in Bitcoin but wanted to develop a project to address the Bitcoin deficiencies and create what in effect would be digital cash.
To achieve this result, Lee forked the Bitcoin source code and implemented three major changes to the protocol:
So from its initial design, Litecoin was intended to prioritize its use as an everyday transactional cryptocurrency, improving on the original Bitcoin concepts.
While over time Bitcoin has transformed itself into a store of value, Litecoin has retained its transactional emphasis. Nonetheless, while being transactional is the main associated use of Litecoin, some users utilize the coin for other purposes, to wit:
Clearly, Litecoin was designed to be, and in fact exists primarily as a transactional cryptocurrency. Litecoin may not exhibit all the flash surrounding all the new DeFi investments present in today's market, but Litecoin is well established and is a workhorse in the area of use for which it was intended.
