Litecoin and Ethereum were built with different goals, and their core technology reflects that. Litecoin was designed as a faster and lighter version of Bitcoin. It uses a Proof of Work system based on the Scrypt algorithm, which allows quicker block times and makes mining more accessible than Bitcoin’s SHA-256 system. Litecoin focuses mainly on being a reliable payment currency, so its blockchain is optimised for speed, low fees and simplicity. It doesn’t aim to run complex applications. Its structure stays close to Bitcoin’s original design, making it easier to maintain and highly predictable.

Ethereum, on the other hand, was created as a platform for building decentralised applications. Its core technology goes far beyond simple transactions. Ethereum originally used Proof of Work but moved to Proof of Stake with the Ethereum 2.0 upgrade. This change made the network more energy efficient and allowed it to handle future scaling improvements. The biggest difference is Ethereum’s virtual machine, which lets developers write and deploy smart contracts. These programmable contracts support tokens, decentralised finance, NFTs and thousands of applications.

Another key difference is supply. Litecoin has a fixed limit of 84 million coins. Ethereum has no strict maximum supply because its focus is utility rather than scarcity. Ethereum also updates more frequently to support new features, while Litecoin keeps changes minimal to stay stable.

Overall, Litecoin is a straightforward payment coin built for speed, while Ethereum is a full blockchain ecosystem built for innovation and complex applications.

Litecoin and Ethereum differ mainly in purpose and underlying design. Litecoin was built as a faster, lighter version of Bitcoin, using the Scrypt algorithm to make block creation quicker and reduce hardware barriers for miners. Its focus is simple peer-to-peer payments. Ethereum, on the other hand, was created as a programmable blockchain. Its core technology supports smart contracts and decentralised applications, allowing developers to build automated systems directly on the network. Ethereum’s more complex virtual machine processes these contracts, which makes it flexible but resource-intensive. Litecoin offers speed and low fees, while Ethereum provides a broader environment for token creation, decentralised finance, and large-scale on-chain development.