Litecoin founder Charlie Lee is detailing two key upgrades coming quickly to the thirteenth largest cryptocurrency.
In an interview with crypto analyst Scott Melker, Lee highlights why Litecoin’s upcoming replace, which can add extra fungibility and privateness to the digital token, is essential to sound cash ideas.
“Fungibility is one thing that’s lacking, or, not pretty much as good in Bitcoin and Litecoin immediately…By way of properties of excellent sound cash, BTC and LTC have every part besides fungibility.”
By fungibility, Lee implies that each coin is similar as each different coin. Fungibility permits customers to interchange items or belongings with one other good or asset of the identical kind as a result of they’re equivalent and have equal worth.
Though one Bitcoin may be traded for one more Bitcoin, with each having equal worth, blockchain transactions inherently present extra info. For instance, one particular Bitcoin could also be held in a pockets that’s price tens of millions whereas one other Bitcoin could also be held in a pockets price $10.
“For cash, you need it to be fungible. Any $20 invoice you spend needs to be indistinguishable from some other ones…And it’s not true immediately for Bitcoin and Litecoin. In the event you actually look into it, while you’re spending cash, you must choose and select which coin you spend in order that it doesn’t reveal any non-public info you don’t need to reveal.
So when you received paid $10,000 as a wage, when you use these cash to purchase a espresso, then the recipient will see that you’ve $10,000 in your checking account price of Bitcoin.
That’s the form of info that you just wanna hold non-public, even when you have nothing to cover. Monetary privateness is necessary.”
To sort out this privateness concern, Lee and his workforce are planning to implement new expertise, dubbed “MWEB”.
“What I’m engaged on is getting a expertise known as MimbleWimble onto Litecoin as extension blocks. The mission’s known as MWEB, which stands for MimbleWimble Extension Blocks. That might add extra privateness and extra fungibility to Litecoin, and I believe that’s gonna assist it develop into a greater type of cash.”