Charlie Lee Tweets About Making Litecoin (LTC) a Privacy Coin
Fungibility is the one and only feature of sound money missing from Bitcoin and Litecoin. Do you support adding a privacy feature to Litecoin? If so, which do you prefer and why?
— Charlie Lee [LTC⚡] (@SatoshiLite) August 29, 2018
A recent tweet by Lee revealed that he sees fungibility as a missing piece from both Litecoin and Bitcoin. In an effort to bring in the community, Lee opened up a Twitter poll to see whether Litecoin investors and users would like to see privacy features added, and if so, what their preference would be in underlying technology.
The options that Lee proposes to the community include Confidential Transactions (CTs), ZK-Snarks/ZK-Starks, MimbleWimble and of course, the option to deny any sort of privacy functionality.
According to the current results, which was closed with 17 hours left, the Twitter poll indicates that a significant portion of the Litecoin community would like to see CTs implemented on the Litecoin network, although “Don’t add privacy” was second.
CTs, which were originally conceived by Bitcoin developer Gregory Maxwell, would work by homomorphically encrypting the inputs and outputs of Litecoin transactions by using a blinding factor, which is a string of numbers that encrypts the identifiable information associated with addresses.
The next technology option, which is in third place behind “Don’t add privacy,” represents zero-knowledge proofs, a technology that is used by a number of notable privacy cryptocurrencies, including Zcash (ZEC). This technology ultimately works to guarantee the validity of transactions without revealing additional information about them.
The last place option is MimbleWimble, which functions similar to CT technology with one major difference. With MimbleWimble transactions, the receiver of the Litecoin would be generating binding factor, which would used as proof of ownership by the receiver.
When pressed in a response to his tweet, Lee agreed that implementing the MimbleWimble fork would perhaps be implemented as a system of 2 blockchains running side by side that allows an easy transfer from the non-private chain to the new chain.
It will be a hardfork for sure. Can do it as an upgrade where 2 blockchains run side by side with a one-way send from current blockchain to new MW blockchain. Once you go private, you stay private.
Although currently unlikely, if privacy tech is implemented, Litecoin would become the largest coin in the AltDex Privacy Coin Index (ALTPRV), which tracks cryptocurrencies and tokens focused on privacy or security — a position currently held by Monero.
More: Charlie Lee’s Tweet
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.