Litecoin Creator Charlie Lee Talks About Confidential Transactions
Litecoin made headlines not too long ago when it’s been reported that the mining profitability is on the rise.
LTC went through a having process back in August, and you may recall that this reduced the amount of LTC miners earn by 50%.
After that, an important number of miners appeared to leave the network with the hash rate dropping by more than 50%.
Now, it’s been revealed that a mechanism known as the difficulty adjustment begins to kick in, according to the latest data coming from the Daily Hodl, which cited the info from BitInfoCharts.
Charlie Lee talks about confidential transactions
During a new interview, Charlie Lee talked about why the platform has decided to use MimbleWimble to power confidential transactions.
Lee said that the main focus is to make sure that the transaction history of a particular LTC doesn’t affect its value.
“From my point of view, I see it less about privacy and more about fungibility. So I think in order for Bitcoin and Litecoin to be usable money, it really has to be fungible in the sense that whichever Bitcoin or Litecoin you spend should be equal to every other coin you have,” Lee said.
He continued and said: “When you go buy coffee and pull out a $20 bill from your wallet, it doesn’t matter which one you have. You don’t have to think about picking one that has less history on it, because they’re all exactly the same to you and the merchant.”
Lee stated that this is something that is not true for LTC, and he wants to improve this aspect.
He continued and said that privacy is a requirement for fungibility, and due to the fact that the transaction history is not private, you can always censor the different transactions, and this makes the coin not fungible.
Check out the video above to find out more.
Ex-Google engineer, Charlie Lee is the creator of Litecoin and MD of the Litecoin Foundation. Previously Director of Engineering at Coinbase, Lee now focuses full-time on Litecoin. To enhance fungibility and privacy of LTC, integration of MimbleWimble has begun, however Lee has recently announced a crowdfunding launch to fund the development.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.