Litecoin vs Ethereum - What?s the Difference What is better Ethereum or Litecoin? While Litecoin uses transaction fees similar to Bitcoin, Ethereum uses gas fees. The gas fee entails the effort necessary for executing a smart transaction on the Ethereum blockchain. Litecoin's lower price makes it easier for people to use without paying significant fees. What makes Litecoin different? Bitcoin and Litecoin use different cryptographic algorithms: Bitcoin uses SHA-256 encryption algorithm, and Litecoin uses Scrypt. Both Bitcoin and Litecoin are cryptocurrencies that use the proof-of-work consensus mechanism. Litecoin can produce a greater number of coins than Bitcoin. Why is Litecoin so special? Litecoin stood out from other alternative cryptocurrencies because of its innovations, including a combination of faster block propagation speeds and the use of the Scrypt hashing algorithm.