The Litecoin Foundation has partnered with software development firm Beam to explore the implementation of a new protocol that would improve privacy and scalability.


The Litecoin (LTC) Foundation has partnered with software development firm Beam to explore the implementation of a new protocol that would improve privacy and scalability. The news was reported in a Beam Medium blog post Feb. 7.

The new protocol, dubbed -ldquo;Mimblewimble-rdquo; -mdash; a fictional tongue-tying curse from the popular Harry Potter novels -mdash; is reportedly being tested for use in conjunction with the scalability solution -ldquo;Extension Blocks.-rdquo; The Beam blog post states:

-ldquo;We have started exploration towards adding privacy and fungibility to Litecoin by allowing on-chain conversion of regular LTC into a Mimblewimble variant of LTC and vice versa. Upon such conversion, it will be possible to transact with Mimblewimble LTC in complete confidentiality.-rdquo;

All work on the ongoing project will reportedly be published under an open source license.

According to a Litecoin Foundation blog post published Feb. 7, Mimblewimble is in part a variant of -ldquo;Confidential Transactions,-rdquo; which allows for transactions to be -ldquo;obfuscated yet verifiable,-rdquo; so as to achieve both heightened privacy and the prevention of double spending.

News of the collaboration has sparked a sharp spike in Litecoin-rsquo;s market value, which has risen 30.18 percent on the day to hit $43.21, overtaking Bitcoin Cash (BCH) and EOS to become 4th largest cryptocurrency by market cap, according to CoinMarketCap data.

Litecoin 7-day price chart
Litecoin 7-day price chart. Source: CoinMarketCap

Ahead of the past days-rsquo; strong performance, the altcoin had traded range-bound between $30 and $34 for much of January.

As reported, Litecoin creator Charlie Lee preempted today-rsquo;s announcement by tweeting that - -ldquo;fungibility is the only property of sound money that is missing from Bitcoin -amp; Litecoin,-rdquo; proposing that -ldquo;the next battleground will be on fungibility and privacy.-rdquo; He revealed the Foundation-rsquo;s work would be focused on implementing Confidential Transactions, and suggested it could be achieved without recourse to a hard fork.

Altcoins in the industry which were designed with an explicit focus on maximizing privacy include Monero (XMR), Zcash (ZEC) and Dash (DASH).





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