“Fungibility is the one property of sound cash that’s lacking from Bitcoin & Litecoin. Now that the scaling debate is behind us, the following battleground shall be on fungibility and privateness. I’m now centered on making Litecoin extra fungible by including Confidential Transactions,” Lee introduced on Twitter, later including that it’d occur “sometime in 2019.”
It may even not essentially imply a tough fork: “Confidential Transactions can be softforked in,” he defined. It additionally shouldn’t have an effect on Lightning Network compatibility. However, the protocol they’re going to make use of will certainly not be MimbleWimble, as “it changes the blockchain too much and has to be a hard fork.” As for the privateness layer, it is going to initially be non-obligatory. Lee explains, “I think mandatory [privacy] is much stronger privacy and fungibility but it’s harder to reach consensus on doing.”
Fungibility is a function of a commodity or an excellent, which, if possessed, signifies that the models of the actual good or commodity are interchangeable. A very good instance is a greenback invoice: there may be an especially great amount of greenback payments in circulation, but each single greenback invoice has the identical value: one greenback. Every greenback invoice is interchangeable with some other, and they’re going to all buy the identical quantity of products.
This is just not essentially the case in with cryptocurrencies. Newly minted cash are sometimes thought of extra priceless than these tainted by operations, particularly if the customers earlier than you used them for unlawful means. This signifies that “the recipient can choose not accept the transaction based on transaction history, and decide to not do business with you,” as Charlie Lee explains.
Moreover, as reported final week, a group of researchers from UK college Cambridge have discovered a way to track stolen bitcoins even after they’re laundered, giving legislation enforcement a wholly new and highly effective option to monitor the proceeds of cryptocurrency crime for the primary time.
Litecoin worth chart:
Not everybody in the neighborhood thinks privateness is such an ideal concept. Reddit consumer u/bittabet writes, “Meh, that is going to be an unpopular opinion however I really assume Satoshi was proper in letting or not it’s a public ledger and solely pseudonymous. That approach governments could be extra more likely to settle for and permit adoption, till it is so entrenched that it is too late to cease it. Then it would be trivial so as to add this type of stuff. Adding this stuff now’s a mistake.” But u/Scissorhand78 counters, “Once you mold something to be palatable to world’s governments, it will become so useless and hideous that you might as well take it out back and put a match to it.”
Also, Alexander Zaidelson, CEO of the Beam undertaking, which is presently one of many solely two cryptocurrencies to combine MimbleWimble, is just not nervous that privateness centered cash are usually not very preferred amongst state establishments.
“There is no regulation that transaction history has to be visible at all times. I mean, cash does not have a transaction history. Current regulatory frameworks tell us that if I’m selling lemonade for cash, I have to print register slips. But if I’m paying for lemonade, I don’t have to report anything. We want to create exactly that experience in Beam,” he mentioned in a current interview with Cryptonews.com.