This excitement could soon hit new levels after a tweet this week by Litecoin (LTC) founder Charlie Lee revealed the altcoin is now focused on adopting Confidential Transactions for enhanced fungibility.
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. ?
— Charlie Lee [LTC⚡] (@SatoshiLite) January 28, 2019
This isn’t the first time that Lee has expressed interest in bringing privacy functionality to Litecoin. Last August, Lee polled his Twitter followers as to whether Litecoin investors and users would like to see privacy features added, and if so, what their preference would be in underlying technology.
The options that Lee proposed to the community included CTs, ZK-Snarks/ZK-Starks, MimbleWimble and of course, the option to pass on any sort of privacy. Ultimately, the Litecoin community voted to see Confidential Transactions implemented on the Litecoin network, although “Don’t add privacy” finished second.
What's your view on the plan to add Confidential Transactions into Litecoin?
— Litecoin.com (@LitecoinDotCom) January 28, 2019
CTs, which were originally conceived by Bitcoin developer Gregory Maxwell, would work by homomorphically encrypting the inputs and outputs of Litecoin transactions by using a blinding factor, which is a string of numbers that encrypts the identifiable information associated with addresses.
Given Lee’s language, it seems that this is now a primary focus that could very well bring the functionality sometime in 2019. This would ultimately add new utility to Litecoin, helping to separate it from Bitcoin and other major altcoins.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.