Litecoin's "SegWit" implementation impacts the scalability of the network by increasing the block size limit without a hard fork, allowing for more transactions to be processed in each block. This helps to reduce congestion on the network and improve transaction speed. In terms of security, SegWit also enhances the security of Litecoin by fixing transaction malleability issues, which can help prevent certain types of attacks and make the network more resilient against potential threats. Overall, the SegWit implementation in Litecoin has been seen as a positive development for both scalability and security.