The Litecoin Foundation recently published two new draft Litecoin Improvement Proposals which are now featured in the crypto news – and are best described as improvements that work towards establishing privacy features for the network.
On October 22, the Foundation shared links to the details of the draft proposals on GitHub with LIP-0002 EB and LIP-0003 MW being in the focus. As the Foundation said in the recent Litecoin news now, both of the proposals are targeted at mitigating the privacy risks which are linked with a transparent ledger. The transaction history, on the other hand, can be publicly traced, the Litecoin Foundation said.
The authors of this proposal include Andrew Yang, David Burkett and Charlie Lee. All of them argue that this transparency hinders Litecoin and its “functional fungibility in a government-regulated merchant world.” The Litecoin Foundation also disclosed the following in the proposals:
“Personal identifiable information collected from IP address, exchanges, or merchants can be leaked then tied to your addresses. Also services, such as chain analysis, provide risk-scores based on whether or not any addresses that they have blacklisted appear in its transactional history. This results in some businesses treating these coins as ‘tainted’ and then sending them back to the owner, or worse yet, shutting down their account.”
In order to solve this problem, the main goal for the Litecoin Foundation is to work on the integration of the scalability and privacy-focused MimbleWimble protocol – which was named after a fictional tongue-tying curse from the popular Harry Potter novels.
In detail, MimbleWimble is a variant of the cryptographic protocol known as Confidential Transactions, allowing for transactions to be obfuscated yet verifiable so as to achieve privacy and the prevention of double spending.
As the Litecoin Foundation noted, the proposals envision implementing MimbleWimble as an opt-in new transaction format through the “extension blocks” (EBs). These EBs will run alongside the main canonical blocks, at the same intervals (2.5 minutes on average).
The documents also outline the functioning of the opt-in integration and the effects that it has for transaction privacy. They also show how the proposals tackle the interaction between coins in the EBs and the canonical blockchain.
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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