Litecoin (LTC) Announces Completion of Privacy Upgrade Following Years of Development

The developer of the Litecoin (LTC) cryptocurrency, Litecoin Foundation, is announcing a privacy and security-enhancing update.

Litecoin Foundation says that the Mimblewimble Extension Block (MWEB) upgrade is now a Release Candidate after undergoing development, testing, reviewing and auditing for years.

The MWEB upgrade will be bundled with the Taproot upgrade and released as part of Litecoin Core 0.21.2. Taproot is an update to enhance the privacy and efficiency of the network.

According to the Litecoin creator and the managing director of the Litecoin Foundation, Charlie Lee, the upgrade will go live as soon as the activation threshold is hit.

“Note that although MWEB is released, it won’t be ready to use immediately. We are using Bitcoin Improvement Proposal 8 with 75% activation threshold and one year time limit. So miners need to update to the new release and signal for activation.”

According to the Litecoin Foundation, the upgrade will solve a problem common to Litecoin and other blockchains where the “amounts sent between wallets are publicly displayed, allowing anyone to see how much is being sent, received and held; making the users’ ‘privacy’ impossible to protect.”

The privacy-enhancing MWEB upgrade will be optional for users, according to the Litecoin developer.

“Until now, cryptocurrency has been lacking these basic privacy measures offered by traditional banking systems – which, for the most part, afford individuals privacy concerning their finances – but that’s all changes with Litecoin’s MWEB upgrade.

Users may not require this level of ‘privacy’ for all Litecoin transactions, which is why using MWEB is optional, allowing users to ‘opt-in’ at their discretion, based on their needs.”

Mimblewimble consists of various technologies including coin-mixing and a technique for concealing the transaction amounts.

Extension Blocks provide optionality and can be viewed as an adjacent chain or a “parallel highway” that allows users to choose MWEB or the main Litecoin chain and vice versa.

Litecoin is trading at $11 at time of writing, up by 4% over the last 24 hours.

Check Price Action

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix



Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Troyan/WindAwake


Tagged : / / / / / / / /

Lightning Speed: Taproot And The Lightning Network, A Match Made In Heaven

A little more than two months ago, Taproot went live. What does the biggest update to the Bitcoin network in years bring to the table? How can it help the increasingly popular Lightning Network? That’s exactly what the article we’re about to summarize is about. It starts by informing us that “Bitcoin even has a scripting language,” and that it’s called Script.

Related Reading | Number Of Bitcoin Lightning Network Nodes Jumps 23% In Three Months

But before we get into that, what is Taproot?

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

“Taproot is a combination of three Bitcoin Improvement Proposals (BIPs) that enhance this scripting infrastructure: BIP340 – Schnorr, BIP341- Taproot and BIP342 – Tapscript. The key of Taproot that unlocks all the others is the introduction of Schnorr Signatures, which allow for key and signature aggregation. This means that multiple parties are able combine their keys to a single public key, thereby allowing them to sign a single message.”

It’s important to know that Taproot won’t allow “fully expressive” or “Turing complete” contracts like in Ethereum and all its related chains. Nor are those kinds of contracts a priority for the Bitcoin network, as our sister site Bitcoinist points out. Also, to curb our expectations, let’s read what Tales From The Crypt podcast’s host Marty Bent warned us about in his newsletter:

“It is important to understand that these benefits aren’t going to be immediate. They are going to come to market slowly over time as the software gets implemented into wallets and other services. Many are expecting Taproot to get activated over the weekend and all its potential benefits to be realized immediately. This is simply not the case and it is important that this fact is understood.”

Ok, let’s get into the meat and potatoes.

How Does Taproot Help The Lightning Network?

First of all, every Lightning channel consists of “2 of 2 multisigs”. So, a first benefit of being “able combine their keys to a single public key” is that “we have lighter transactions and therefore cheaper channel openings”. Not only that but “signature aggregation also offers enhanced privacy since its contents are indistinguishable from a single-signature transaction.”

Get 110 USDT Futures Bonus for FREE!

To clear up how does this benefit privacy, let’s quote the Binance Academy:

“Spending Bitcoin using Taproot could make a transaction in a Lightning Network channel, a peer-to-peer transaction, or a sophisticated smart contract become indistinguishable. Anyone monitoring one of these transactions would see nothing but a peer-to-peer transaction. It’s worth noting, though, that this doesn’t change the fact that the wallets of the initial sender and final recipient will be exposed.”

However, this is not quite true… yet. The Voltage article clarifies, “Does this mean that lightning channels are now unidentifiable on the blockchain? Well, the answer is ‘yes’ for private channels and ‘not quite yet’ for public channels.”

BTCUSD price chart for 01/04/2021 - TradingView

BTC price chart for 01/04/2021 on Gemini | Source: BTC/USD on

Private And Public Lightning Network Channels

What’s the problem? Well, the network doesn’t announce the creation of private channels. The public ones, on the other hand:

“Unfortunately, even if we do hide the channel openings on the blockchain, the current specification of the lightning protocol requires nodes to broadcast the details of the funding transactions when announcing their channels.

This might seem counterintuitive at first, but it’s also an elegant way to prevent nodes spamming the network with fake channels.”

Related Reading | How Big Is Bitcoin’s Lightning Network? The Answer Will Surprise You

Also, let’s take into account that surveillance firm Chainalysis already announced a Lightning Network-related service. We should assume there are “sybil nodes surveilling the network”. And that “With enough hostile nodes” a bad actor could paint “a fairly detailed picture of the flow of funds”. Well, Taproot has an elegant solution for that:

“Taproot’s introduction of Schnorr signatures paves the way for a type of smart contract called Point Time Locked Contracts (PTLCs). PTLCs operate in the same manner as HTLCs by allowing payments to be identified by nodes, but PTLCs come with a handy feature of being able to randomize its identifier with each hop thereby making it impossible for nodes to correlate the traffic of sending and receiving nodes.”

Understand that “Taproot is a door that opens many other doors”. It’s a new toolkit with which developers all over the world will create new features and improvements. The info this article contains is just the beginning, the low-hanging fruit that we can see from our advantage point. Remember what Marty Bent said, “these benefits aren’t going to be immediate.” The Taproot-enabled stage of Bitcoin is just starting.

Featured Image by Cooper Baumgartner on Unsplash  | Charts by TradingView


Tagged : / / / / / / / / / / / / / / / / /
Bitcoin (BTC) $ 27,401.34 1.44%
Ethereum (ETH) $ 1,657.07 0.16%
Litecoin (LTC) $ 65.77 0.13%
Bitcoin Cash (BCH) $ 231.90 6.89%