Litecoin‘s founder and CEO are Charlie Lee. He was previously a software developer at Google, and he became involved in Bitcoin and blockchain technology early on. Litecoin is an alternative to Bitcoin, not a rival, according to Lee.
In a recent interview with CNBC, Charlie Lee was asked to explain Bitcoin and Litecoin’s differences to the cryptocurrency space. He responded in “layman’s” terms, which he has been using for many years. Bitcoin, he said, should be viewed as digital gold, while Litecoin should be considered to be in digital silver.
Lee discussed the mining algorithm when asked about the fundamental differences in their work. He also said that Litecoin was four times faster and had four times the number of coins like Bitcoin.
He clarifies how Bitcoin transactions take ten minutes to complete while Litecoin transactions take two and a half minutes.
When asked to clarify what he meant by congestion, Lee explained that the Bitcoin blockchain was at capacity. He claimed that transactions were vying for a spot in the new block and that the ones chosen by the miners who had paid the highest fees would win.
When comparing the two cryptocurrencies, the interviewer used his analogy. He wondered if the Bitcoin blockchain was analogous to a ship paying higher fees to skip the line and reach the Suez Canal.
Lee agreed, saying that unless people paid the highest fees, it would take a long time for their transaction to be included in a block. He compared Litecoin to a canal that runs parallel to the Suez Canal. This canal had a higher “bandwidth,” allowing more ships to pass through than the Bitcoin one.