Litecoin developers published two improvement proposals (IP) based on MimbleWimble implementation through Extension Blocks. If accepted, they will ensure the privacy of transactions with Litecoin. Users will be able to use a new format of confidential transactions via extension books that will be issued together with the main blocks.
“This LIP introduces opt-in MimbleWimble (MW) as a new transaction format through extension blocks (EB). Extension blocks run alongside main chain canonical blocks at the same interval of 2.5 minutes on average. Inside the EB is where MW transactions occur. Users can opt-in to using MW by moving their coins in and out of the EB through an integrating transaction,” the developers wrote on GitHub.
They believe that the existing transparency of Litecoin blockchain reduces coins’ functional interoperability.
“Due to the nature of a transparent ledger, transaction history can be publicly traced. This hinders Litecoin’s fungibility in several ways. Personal identifiable information collected from IP address, exchanges, or merchants can be leaked then tied to your addresses. Also services, such as chain analysis, provide risk-scores based on whether or not any addresses that they have blacklisted appear in its transactional history. This results in some businesses treating these coins as “tainted” and then sending them back to the owner, or worse yet, shutting down their account. This hinders Litecoin’s functional fungibility in a government regulated merchant world,” they explained.
Litecoin’s technical picture
Meanwhile, LTC/USD is changing hands at $49.49, off the recent low hit at $47.20. While thee recovery is still capped by psychological $50.00, a sustainable move above this handle for the upside to gain traction towards $51.57 (SMA50 (Simple Moving Average) on one-hour chart). On the downside, the initial support is created by the recent low of $47.20.