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Litecoin plans to add confidential transactions in 2019

By February 15, 2019 No Comments
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Charlie Lee, the founder of Litecoin (LTC) and a recognized figure in the cryptocurrency space, posted a tweet in which he says that he is focused on making Litecoin more fungible. In this tweet, he said that fungibility is the only property of sound money that is missing from Bitcoin and Litecoin.

Charlie Lee has been working on Litecoin during the last years and now it seems that it is being focused on Confidential Transactions. At least this is what he wants to add to this popular digital asset.

This is not the first time that Charlie Lee mentions the topic related to confidential transactions and privacy on Litecoin. Back in November 2017, Charlie Lee said that he was excited to see the progress on confidential transactions since fungibility was the only feature of ‘good money’ that Bitcoin and Litecoin do not have.

 

He added that the primary advantages are that there are no new cryptographic assumptions, a higher performance, no trusted setup, and many other things. According to Charlie Lee, the new implementation will be added to Litecoin via a soft fork sometime in 2019.

Mr. Lee provided more information about these Confidential Transactions, he said that it will be just as simple as sending LTC right now and that they will be adding all the necessary things for making transactions really private. One of the things he mentioned is that they will not be implementing Mimblewimble because is too hard to be implemented.

Furthermore, he said that he is considering opt-in confidential transactions as well, something that could allow the digital asset to be more regulatory compliant. This is something similar to what Z-Cash (ZEC) did with the Zk-Snarks implementation.

About the scaling debate, Charlie Lee said that although it is not solved, developers are making huge progress on the matter. Indeed, the Lightning Network (LN) has been growing at very fast rates during the last months. Now the LN has a capacity of 577.69 BTC, 5,723 nodes and 22,259 channels.

 

Back in August 2018, Charlie Lee asked his followers on Twitter about this issue. He made a poll in which he asked the community which privacy feature users would like to see implemented on Litecoin.

44% of the respondents said that they would like to see Confidential Transactions. 22% chose not to add privacy to Litecoin. 21% answered that the best privacy feature would be ZK-Snarks / ZK-Starks. Just 13% mentioned that they would like to add MimbleWimble.

 

There are other privacy coins in the market such as Monero (XMR) or ZCash, among others such as Bitcoin Private (BTCP) or Pivx (PIVX). In this way, Litecoin will be joining a selected group of coins that allow users to keep their data private will transacting digital assets.

This is different from what Bitcoin currently is doing. Bitcoin is not a privacy-focused digital asset, contrary to what most individuals outside the crypto market think. Each transaction can be publicly seen on the blockchain, including the funds transacted.

Clearly, this is going to add value to a market that is searching for increased privacy. Bitcoin users might be able to make an atomic swap for Litecoin, send a private transaction and return to the BTC network with a new swap. Additionally, the transactions can be processed through the LN, which might speed up the whole process.

Tron (TRX) is another top 10 project in the market that is going to add privacy features to its coin. The intention is to implement Zk-Snarks and allow users to protect their privacy while transacting funds.

 

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