Litecoin introduces MimbleWimble Technology update

The Litecoin Foundation developers immediately published two proposals to improve the protocol, which include the integration of MimbleWimble technology update to ensure transaction confidentiality.

October 23, 2019, | AtoZ Markets Earlier today, the long-awaited proposal for the implementation of the Litecoin MimbleWimble (MW) project was posted to Github organizations as new LIP 2 & LIP 3 pull requests from Litecoin Improvement Protocol (LIP).

Litecoin MimbleWimble – LIP 2 update

LIP 2 focuses on the implementation of Expansion Blocks (EB). It is a method first described by the bitcoin developer, Johnson Lau. That would add not only MimbleWimble but also an effective block size increase without any change of the consensual rules on the network. Although the exact size is not sure. The team is still under discussion, as the team is not yet sure what it should be, and what is chosen will be fixed once it is accepted. They need to discuss further the size of the expansion block.

It will be up to the network to vote on the final code and to adopt or not the new technology, which is called a soft fork. The proposal states that the fork will be activated one year after the day of implementation. Also, minors will be able to activate it earlier with a 75% reporting threshold.

Litecoin MimbleWimble – LIP 3 update

LIP 3 is the one that deals with the MimbleWimble proposal and the team’s motivation behind it.

Due to the nature of a transparent ledger, transaction history can be traced publicly. This hinders Litecoin’s fungibility in several ways. Personally, identifiable information collected from IP address, trade, or traders can be leaked and linked to your addresses. And services, such as chain analysis, provide risk scores based on whether or not they have addressed.

The result is that some companies treat these coins as tainted. Then those companies send them back to the owner, or worse, close their account, which hinders the functional fungibility of Litecoin in a merchant world regulated by the government.

What’s new in Litecoin MimbleWimble update?

The developers of the Litecoin foundation concluded that the MimbleWimble is the ideal protocol to implement for private transactions does it mask the amount sent. And also, the transaction history is removed from the ledger, thereby increasing privacy protection by removing related transactions as well as mitigating the growth of the blockchain size. 

MimbleWimble will offer pseudo confidentiality. Before this history is erased, those who monitor the network will be able to store the state of the chain. That means that even if the values are hidden, it is still possible to follow the activity and the user interactions. That will help fungibility.

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