After Litecoin founder Charlie Lee teased new privacy features early this year, it has finally published the first draft plans. Litecoin has proposed MimbleWimble (MW) transactions to bring on updated scaling and privacy features.
Litecoin launched in 2011 after forking from Bitcoin. Since then, the cryptocurrency has been trying very hard to differentiate itself from Bitcoin. Litecoin’s latest proposal for implementing MimbleWimble could be a huge game-changer.
Good to see Litecoin development moving forward.https://t.co/oxVhfr5gb6
— Mati Greenspan (@MatiGreenspan) October 24, 2019
Litecoin Improvement Proposals
Litecoin has proposed two improvement proposals, LIP 2 and LIP 3. The first proposal, LIP 2, introduces extension blocks (EB) to Litecoin. It allows Litecoin to implement new protocols such as MimbleWimble without altering consensus rules. It is similar to a block size increase and runs alongside the main chain’s canonical blocks.
The second proposal, LIP 3, deals with the implementation of the MimbleWimble protocol. It uses the extension blocks proposed in LIP 2 and users can then use MimbleWimble by moving their coins into EB if they so choose.
MimbleWimble Privacy
The Bitcoin community first proposed MimbleWimble (MW) back in 2013. It has not progressed much with Bitcoin, however, the Litecoin community is now more adoptive.
Litecoins moved to extension blocks are sent to a specially marked anyone-can-spend address. Inside the EB, an equivalent amount of MW coins are redeemed. MW then hides the amount and also deletes the transactional history from the ledger. It helps with increasing privacy while reducing the block size at the same time.
Additionally, LIP 3 has also proposed a switch commitment to Elgamal. If Quantum Computers become a viable threat in the future, it can be activated.
Possible Exchange Delisting
MimbleWimble can make Litecoin significantly better, but it could also result in exchange delistings. Several exchanges like Coincheck, Upbit, and even Coinbase UK have already delisted privacy coins such as Monero and Zcash. Hostility towards privacy coins could bring extra scrutiny onto Litecoin and also result in delisting.
Do you think exchanges will delist Litecoin if they implement these privacy features? Let us know your thoughts in the comments below.
Images courtesy of Twitter, Shutterstock.
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