Litecoin developers have published two proposals for improving the protocol (LIP-0002 EB and LIP-0003 MW) with the aim of introducing MimbleWimble technology for transactions with a high level of confidentiality.
Both proposals are aimed at reducing the risks of privacy violations associated with the open blockchain, where the entire transaction history is in the public domain.
“Such transparency hinders the effective interchangeability of LTC in the government-driven trading world,” the authors of the proposals said.
Developers believe that personal information obtained on exchanges or in online stores can be disclosed and tied to user addresses. Many services evaluate risks by checking to see if the address appears on the blacklist in the history of trade transactions. This leads to the fact that coins received from such addresses are considered “dirty”. As a result, companies send them back to their previous holders or simply block their accounts.
To solve this problem, Litecoin is working on integrating the Mimblewimble protocol, which will provide a higher level of privacy. Confidential transactions will be made in a new format through expansion units, which will be issued together with the main units with an average interval of 2.5 minutes.
The principle of operation of MimbleWimble is that the block does not contain detailed information about all transactions, while they are confirmed, which also prevents double spending attacks. The proposed improvements will be implemented if more than 75% of the network participants vote for them.
Recall that in January, the Grin and Beam blockchains were launched on the basis of the Mimblewimble protocol, and a year ago a new privacy document was published on behalf of the author of MimbleWimble.
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