Litecoin Embraces Smart Contracts with New Layer-2 Network

Litecoin is taking a major leap into the world of DeFi and Web3 with the launch of LitVM, a newly introduced Layer-2 network designed to bring smart contract capabilities to the long-standing cryptocurrency.

Revealed during the Litecoin Summit in Las Vegas, the LitVM project is being spearheaded by Lunar Digital Assets in collaboration with the Litecoin Foundation.

Built using BitcoinOS and Polygon’s Chain Development Kit (CDK), the network is Ethereum Virtual Machine (EVM) compatible and utilizes zero-knowledge proof technology to enable secure and trustless interactions.

This marks a significant shift for Litecoin, which has traditionally focused on speed and simplicity for everyday payments since its inception in 2011. With LitVM, the network is expanding its utility to support programmable applications, cross-chain asset movement, and more sophisticated financial products.

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Litecoin creator Charlie Lee emphasized that the project remains grounded in the principles that have defined the blockchain for over a decade—security and reliability—while finally opening the door to modern blockchain use cases like smart contracts.

LitVM aims to unlock a new layer of possibilities for the Litecoin ecosystem. Its launch could pave the way for real-world asset tokenization, stablecoin-based payments, and native on-chain innovations like Runes and Lordinals—features that were previously outside Litecoin’s technical scope.

By stepping into the Layer-2 space, Litecoin is positioning itself to evolve alongside more advanced networks while offering its community access to a growing range of decentralized financial tools.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.