According to Lee, privacy features are now increasingly attractive and popular among cryptocurrency users, which is the motivation behind the consideration of privacy for Litecoin (LTC) transactions.
In the course of the interview, he said the enhancements are tested already and the upgrade to the main network is slated for 2021.
Litecoin (LTC) is one of the oldest cryptocurrencies that have struggled to reach the level of the first and largest cryptocurrency, Bitcoin (LTC).
The success of this effort is expected to boost the cryptocurrency that has over the past months endured lackluster growth in crypto markets.
“I want to make it so that users don’t have to worry about giving up their financial privacy by using litecoin. Even if you’re not doing anything illegal, you don’t want people to know how much money you have or what your paycheck is.”
Normally, one of the crucial aspects of blockchain technology is making cryptocurrency transactions visible to everyone on the internet. This makes it easier for anyone to track and monitor wallet addresses.
In order to add privacy to cryptocurrency transactions, a number of developers have been working over the years to preserve this aspect in relation to blockchain technology. They are working to make transactions possible and fast without the need for banks or other intermediaries, while the identities of users remain unknown. In this regard, Monero (XMR), Zcash (ZEC), among others have proven to be successful over the years, as they keep attracting the interest of vast crypto users.
Mimblewimble Will Make the Privacy of Litecoin (LTC) a Reality
To make this privacy a reality, Litecoin network relies on technology under development, Mimblewimble. It will drastically minimize the amount of data to be made visible on the main blockchain, with the aid of extension blocks.
Charlie Lee said, “The analogy I like to use is it’s similar to wrapping and unwrapping the coin.”
However, over the use of privacy features in cryptocurrency transactions, there is still no regulatory clarity. Obviously, the features could be used to evade tax or obscure illicit funds. This alone has been raising reasons to doubt the prospect of privacy coins.
On whether Bitcoin (BTC) could emulate Litecoin in pursuing privacy, Charlie Lee said, “I don’t think bitcoin will follow this path of what we’re doing, because it’s a bit drastic.”
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