The MimbleWimble implementation on Litecoin has been underway for over a year now, with a number of updates shared by the team on its development. In a recent podcast, Charlie Lee, the creator of Litecoin shared his thoughts on the MimbleWimble protocol, while expanding the reasons why he decided to upgrade Litecoin’s privacy in the first place.
Lee asserted that Bitcoin and Litecoin are money that does not have a long-term downtrend or depreciation, supported by the self-regulation mechanisms inherent in a free market system, except for one. – both ignore “flexibility”. Note that privacy and flexibility can go hand in hand, and the implementation of MimbleWimble will help Litecoin solve this, Lee said:
“When I send Litecoin to you, you can see the transaction address, you can see the history, you can find out almost how much money I have, right? You have to be careful about not disclosing your finances to others and this makes it really difficult to use.
He added that this is something he wants to deal with with Litecoin, Bitcoin will need something like that later, to make it more fluid.
That said, these upgrades in coins like Bitcoin, Litecoin, and Ethereum could become a threat to privacy coins. While there could be delays in the implementation of evolving protocols like security-enhancing technologies like Taproot / Schnorr on Bitcoin, Ethereum, the upgrade to PoS and Litecoin with MimbleWimble, it all holds promise.
These developments have the potential to reduce their use of private coins, support their community and hinder their future development. Also, scalability is another challenge facing privacy coins, something that isn’t too difficult for other cryptocurrencies. Lee added:
“Private coins like Monero, Zcash and Dash have great privacy, but they don’t have that scale, do they? The block size becomes gigantic. Huge transaction ”.
On the other hand, private coins are no stranger to regulations. Private coin transactions have long discouraged financial institutions, all waiting to tighten regulations around them. Now, the question here is if the king of coin and other altcoins upgrade their security features then end up better than private coins, will they be subject to these regulations. ? If they would be, what was the use of improved privacy features in the first place? These are some of the questions that will have to be addressed in the near future.