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. 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.