Litecoin’s Charlie Lee Announces MimbleWimble Could Be Used For LTC Confidential Transactions
Charlie Lee, the creator of Bitcoin, surprised people on Twitter recently after he said that the Litecoin Foundation was exploring the idea of using MimbleWimble in order to make anonymous transactions.
The message has come in a good time, as the community manager of the Litecoin Foundation, Ilir Gashi, has recently stated that people should keep their expectations low at the moment about new privacy features and that there was plenty of work to be done in this regard.
We haven't announced anything. Just letting the community know what we are exploring and seeing what people think about MimbleWimble and extension blocks.
— Charlie Lee [LTC⚡] (@SatoshiLite) February 3, 2019
Lee’s message is a breath of fresh air for the people who are interested in privacy features for Litecoin. However, Gashi has clarified that nothing is set on stone yet and that the company is currently only looking at the MimbleWimble technology in order to see if it is a good idea.
Charlie Lee has also affirmed that the Litecoin Foundation was currently moving its plans ahead to solve fungibility issues of the token and that solutions could be implemented via a soft fork.
About the MimbleWimble Protocol
The MimbleWimble protocol was created by a developer called Tom Elvis Jedusor. Basically, this protocol inspired by the Harry Potter universe is used in many privacy coins like Beam and Grin and it has become very popular since it was launched.
You can use to encrypt data associated with transactions, which could make them more secure in case someone does not want other people to know about their transactions. This protocol uses CoinJoin, a software that basically is used to combine many payments into only one, which makes them basically impossible to track as the information is encrypted.
People like Charlie Lee are interested in this protocol mostly because it looks like a very scalable technology and it could even become more scalable than high-profile tokens like Bitcoin in time. However, it is simply too early at the moment to be sure whether the Litecoin Foundation will see MimbleWimble as the ultimate technology for doing what they want or not.
One of the reasons that might lead for not using the technology is because, as Charlie Lee has commented before, one of the issues of using the technology is that it might require a hard fork, something that the foundation is not very keen at this moment.
The Litecoin Market
At the time of this report, Litecoin was the 6th largest token in the market by capitalization. It has been trading at $33 USD and it has a market cap of $2 billion USD with a volume of $750 million USD daily.
Some traders have bullish expectations on the token now as it will reduce its block reward from 25 to 12,5 tokens soon, too, so it looks like Litecoin is in a good place for now.