The privacy features of Litecoin are becoming more and more of a reality. Beam, a brand new altcoin, has announced that it is now entering into a "potential collaboration" with the Litecoin development team. This partnership enables Litecoin to implement – or at least introduce – the much-discussed MimbleWimble privacy protocol.
The story so far
Charlie Lee, the creator of Litecoin, previously announced plans to provide Litecoin with confidential transactions and eventually make the coin a peer of Monero and Zcash. Lee was not sure how the privacy should be implemented. However, he points out that these privacy features would not require the implementation of the recently introduced MimbleWimble protocol.
Lee initially ignored MimbleWimble with the impression that his addition would necessarily include a hard fork of the Litecoin Blockchain. However, in early February, the Litecoin development team started the search other possibilities to implement MimbleWimble. These plans have now been officially confirmed by Beam and Litecoin themselves. As seen on Twitter:
– Litecoin.com (@LitecoinDotCom) February 7, 2019
How will it work?
The official Beam blog provides insight into how Litecoin's new privacy features work. Obviously, users can perform on-chain conversions between the regular LTC token and a MimbleWimble variant of the token. The latter tokens can then be used to perform transactions according to Beam as "complete confidentiality".
Litecoin's own website shows that MimbleWimble is being implemented in the expansion blocks of the platform, an optional part of the Litecoin network. This approach will probably prevent a hard fork. However, there are some concerns about backward compatibility, and the majority of Litecoin nodes apparently need to update their software.
Move coin prices
Despite the preliminary nature of the announcement, there was a lot of excitement around Litecoin. The price of the coin increased by 30% at the time of the announcement. Although this rally is likely due to the Beam partnership, other factors may play a role. In particular, the continued integration of CoinGate into the Lightning network could be responsible for increasing the market value of Litecoin:
Great news! We finally make it possible #Litecoin #LightningNetwork Payments to all our 4,500 dealers! So do not hesitate to use #LiteningNetwork Make online purchases or accept LTC Lightning payments with your company. Go $ LTC! @SatoshiLite @litecoin @LTCFoundation pic.twitter.com/j5Zrd8KXtz
– CoinGate (@CoinGatecom) February 8, 2019
In addition, the price of Beam seems to have been positively influenced, albeit to a lesser extent. After a one-week decline, Altcoin posted an increase of 7% in 24 hours. Although beam is still undeniably very low in the broad realm of things, real cooperation will undoubtedly benefit its reputation. In any case, Beam has become a natural partner for Litecoin.
Post-source: Litecoin partner with Beam, will use MimbleWimble after all
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