# Litecoin

Official Website: [litecoin.org](https://litecoin.org/)

Litecoin `(LTC)` is a peer-to-peer cryptocurrency that was forked from Bitcoin in 2011 by Charlie Lee, designed to provide fast, low-cost payments over the internet. It's often referred to as the "silver to Bitcoin's gold," aiming for more frequent transactions and a faster block generation time (2.5 minutes compared to Bitcoin's 10).

Litecoin uses a different hashing algorithm called Scrypt, which makes it more memory-intensive and was initially considered to be more resistant to specialized mining hardware like ASICs, although this has changed over time. It serves as a testing ground for technological improvements before they are implemented in Bitcoin.

## Seed Types

BIP-39 seed type is generated by default, with an option to change to Electrum seed type in the `Advanced Settings` on the creation screen.

### Derivation Paths

* Electrum: `m/0'`
* BIP-39: `m/84'/2'/0`

## Addresses

We automatically generate new Litecoin addresses after each use for better privacy. Previous addresses continue to work.

BIP-39 seed type is generated by default, with an option to change to Electrum seed type in the `Advanced Settings` on the creation screen.

## Seed format

Litecoin wallets only currently support being created using the Electrum seed format. We support restoring seeds generated in the Electrum and BIP-39 seed format.

## MWEB

Introduced in version 4.20.0

{% hint style="info" %}
MWEB is only available on iOS and Android platforms
{% endhint %}

MWEB (MimbleWimble Extension Block) is an addition to the Litecoin blockchain that runs parallel on an extension block, using the MimbleWimble protocol.

MWEB provides extra privacy through **Confidential Transactions**, **Stealth addresses**, and **CoinJoins**.

### Setup

In order to start using MWEB, tap `Enable` on the MWEB card prompt.\
You will receive a notice about data usage, and the time it will take to download the needed data to use MWEB.

{% hint style="info" %}
You will only need to download this data for MWEB once, regardless of how many Litecoin wallets you have
{% endhint %}

[![MWEB Scanning](https://content.gitbook.com/content/tSLIJ3VE2UcCjtTcoMgl/blobs/Yd6NXl6oY5t1wid5JsCr/mweb%20prompt.png)](https://docs.cakewallet.com/cryptos/broken-reference)[![MWEB Notice](https://content.gitbook.com/content/tSLIJ3VE2UcCjtTcoMgl/blobs/qDCt8xQ096HgajT3Nukc/warning.png)](https://docs.cakewallet.com/cryptos/broken-reference)

The wallet will start downloading the needed header data, and show the MWEB balance card. Once it's fully synchronized, you can send and receive MWEB coins.

### Peg In and Peg Out

In order to get your Litecoins in and out of the MWEB network, you can use the `Peg In` and `Peg Out` buttons. These buttons will respectively open a send screen to your MWEB address or Litecoin Segwit address, allowing you to send your MWEB coins or transparent coins into the opposite side.

{% hint style="info" %}
This is not required to do before sending to an MWEB wallet, but can be done to improve privacy by pre-emptively sending these funds into the MWEB network, as well as making MWEB transactions quicker
{% endhint %}

[![MWEB Balance](https://content.gitbook.com/content/tSLIJ3VE2UcCjtTcoMgl/blobs/2LDeLFZRnNoYdHX3LnEH/mweb.png)](https://docs.cakewallet.com/cryptos/broken-reference)[![MWEB Peg In](https://content.gitbook.com/content/tSLIJ3VE2UcCjtTcoMgl/blobs/hU7kmeBdUKGjNU9CRYzt/pegin.png)](https://docs.cakewallet.com/cryptos/broken-reference)

### Enable or Disable

If you would like to enable or disable MWEB synchronization, switch the `Set MWEB always scanning` toggle under Menu -> MWEB settings.

{% hint style="info" %}
Even when MWEB is disabled, your MWEB address will continue to work.

However, you will need to re-enable MWEB to scan the needed blocks to receive your MWEB funds
{% endhint %}

[![App menu](https://content.gitbook.com/content/tSLIJ3VE2UcCjtTcoMgl/blobs/iwePjicDosm75V099jCu/menu.png)](https://docs.cakewallet.com/cryptos/broken-reference)[![Toggle always scanning](https://content.gitbook.com/content/tSLIJ3VE2UcCjtTcoMgl/blobs/p2ZG5aXAvKzHFE2clPKd/alwaysscan.png)](https://docs.cakewallet.com/cryptos/broken-reference)

### Receiving

In order to receive an MWEB transaction, you must give the sender your MWEB address, which can be found by switching the address type to MWEB by opening the `Receive` screen, tapping on the `Receive` text at the top, and switching the address type to `MWEB`. When you want to receive the transaction in the wallet, you must enable MWEB scanning.

[![Address Switcher](https://content.gitbook.com/content/tSLIJ3VE2UcCjtTcoMgl/blobs/HtNUPP8NnEZbWTu4vpMv/address%20switcher.png)](https://docs.cakewallet.com/cryptos/broken-reference)[![Receive Screen](https://content.gitbook.com/content/tSLIJ3VE2UcCjtTcoMgl/blobs/pb7dlfpTDNeJZzfh26Wh/receive.png)](https://docs.cakewallet.com/cryptos/broken-reference)

### Sending

You can send Litecoin to an existing MWEB address (starts with `ltcmweb1`) using the same flow. No extra work is required to send to an MWEB address, the MWEB daemon will handle the transaction submission to the MWEB network.