Confidential transactions to be implemented on Litecoin, says founder Charlie Lee
The founder of Litecoin, Charlie Lee, in a recent tweet mentioned that their upcoming plan is to make Litecoin more “fungible”. In order to do so, Lee stated that they will be focusing more on privacy features by looking to implement confidential transactions.
Lee wrote on Twitter, “Fungibility is the only property of sound money that is missing from Bitcoin & Litecoin. Now that the scaling debate is behind us, the next battleground will be on fungibility and privacy. I am now focused on making Litecoin more fungible by adding Confidential Transactions.”
The privacy-featured Litecoin will be allowing more privacy for the users when they’re spending or sending their Litecoin. According to Lee, people will likely use the coin more if the sender as well as the receiver’s address from the blockchain is hidden. With this, people wouldn’t be able see the balance. Similar to something which is followed in ATM when we withdraw money from it.
Also, one of the most obvious reason behind the privacy feature would be security. It would not let any potential criminals or hackers to see the balance, therefore, reducing the chances of becoming a target.
What is Confidential transaction?
According to Litecoin.com, the Confidential Transactions that Lee mentioned in the tweet was first proposed in 2013 by Adam Back, who is creator of HashCash, a bitcoin precursor and now CEO of Blockstream. “It was expanded on a few years later by Maxwell and the Blockstream team, with a sidechain in the Elements project setup to further test the implementation,” the website explained.
Confidential transactions as described by one of its pioneers, Gregory Maxwell, is, “All the transaction data must be conspicuously public so it can be verified, which is at odds with the normal expectation of privacy for traditional monetary instruments.”
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