The little bitcoin brother Litecoin is about to undergo cosmetic surgery. In the future, Mimblewimble will disguise LTC transactions – at least optional. The developers want to use this trick to avoid a possible delisting. Whether the upgrade will come is not yet in the towel.
With all the hype about Bitcoin, DeFi, and NFT recorder revenues, one long-established coin has fallen somewhat behind in the media in recent weeks: Litecoin (LTC). The performance of the crypto veteran is currently showing a steep growth curve. Litecoin has risen by 15 percent within seven days and, with a 6.4 percent premium on Friday, March 12th is the biggest plus among the ten largest cryptocurrencies. The upcoming upgrade, which the LTC community has been waiting for months, could not be entirely to blame for this.
Litecoin meets Mimblewimble
We’re talking about Mimblewimble, a privacy-oriented blockchain protocol that obscures transaction histories. The upgrade has been undergoing a stress test in the Litecoin Testnet for three months. The results are positive that the target date of March 15 for the completion of the code can be met.
The latest water level report from Mimblewimble developer David Burkett in a forum post sounds accordingly cautiously optimistic:
I guess I’ll postpone this a bit further and start a community testnet sometime after the code is finalized this month. There is still a lot of work to be done before the code review can go in, but I remain confident and committed to meeting the March 15th goal. – David Burkett
Since the “wallet design just did not fit well with the existing LTC wallet”, the developer was a little delayed. Specifically, the difficulty lay in the “Coin Selection Logic”, ie in the smooth transfer of Litecoin to the “MWEB” extension blocks running parallel to the mainchain. The simultaneous processing of LTC and MWEB coins in bundled transactions “kept the developer awake for weeks”.
To make a long story short, I’ve rewritten about 80 percent of the MWEB wallet’s code to support MWEB mixed coin transactions. Although I toyed with the idea of starting the testnet in parallel without this new functionality, the rewriting of the wallet more than burned the entire buffer that I had left in the timeline. The time I would have spent supporting the testnet would certainly have delayed the deadline for completing the code on March 15th. – David Burkett
Anonymous if requested
With the Mimbelwimble integration, the Litecoin Foundation kills two birds with one stone. On the one hand, the upgrade is intended to improve the scalability of the network. By deleting transaction histories and thereby compressing transfers, the Foundation says the extension blocks have “the ability to scale better than Litecoin and Bitcoin”. This helps “to increase the transaction throughput of Litecoin”.
Also, and this is the more obvious side effect, LTC transactions become anonymous. Litecoin turns into a privacy coin through Mimblewimble, at least if you wish. Because the feature is optional and runs separately from the Litecoin mainchain on the Mimblewimble sidechain.
Exchanges that support Litecoin can choose whether or not to support the MWEB feature and are not forced to adopt it.- Litecoin Foundation
With this, the developers leave a back door open. Privacy coins such as Monero (XMR) and Zcash (ZEC) are finally increasingly being targeted by US regulators. If the pressure on exchanges to remove the corresponding coins from the trading venue increases, “the exchanges would only have to stop supporting the extension block”. Whether or not Mimblewimble will actually be implemented is not yet in the dust. Last but not least, the code has to pass a “formal test” by the Miner Tribunal, which decides whether the MWEB protocol is supported.
Check more cryptocurrency analysis software