Bitcoin is a decentralized distributed ledger mainly used for financial transactions, but Ethereum is a decentralized computing platform mainly used for running applications and smart contracts. Bitcoin is designed to be used for payment and exchange of value.
The currency on the Ethereum network called “Ether,” is designed to be used as payment for computing power when running decentralized applications and smart contracts. Ethereum, along with the “Ether” currency, was never designed to be a replacement for Bitcoin.
It serves an entirely different purpose, and while it is growing in popularity and value faster than Bitcoin, it is not seen as a competitor to Bitcoin for financial transactions.
Litecoin is built on the same foundations of Bitcoin, however, it split off from the original Bitcoin blockchain into a completely different blockchain and cryptocurrency.
The Bitcoin network is the largest cryptocurrency network, the majority of the network must often reach an agreement about the direction of the network or changes to the programming code.
As the Bitcoin network is so large, this has held the Bitcoin network back in recent years as it has failed to reach majority agreement on many decisions. Litecoin has been able to make greater improvements to the network compared to Bitcoin. Litecoin adds a block to the blockchain every 2.5 minutes, compared to Bitcoin, which adds a block every 10 minutes.
The block sizes are smaller on the Litecoin network, meaning more transactions can be included in every block. Litecoin has faster processing times for transactions and payments and continues to make improvements while the Bitcoin network still struggles to reach agreement on many changes.
Some people believe that Litecoin will be a better network for payments and transactions and become more widely used than Bitcoin in the future.