Charlie Lee Wants To Make Litecoin (LTC) More Fungible and Private


Litecoin (LTC) creator Charlie Lee has declared that 2019 and beyond will see the cryptocurrency become more fungible than it currently is.

Singapore-based Litecoin Foundation- headed by Lee as its managing director- has for the last couple of years worked hard on making LTC the crypto choice for payments with initiatives like PayWithLitecoin leading to greater merchant adoption.

But now the LTC founder has set a new goal for himself and the Litecoin Core development team.

He shared with the Twitter community what he called the “next battleground” for the project ranked the 7th largest cryptocurrency by market cap.

In one of his tweets on January 28, Lee explained his reason for the move, noting debate about scalability was now behind major cryptocurrencies.

According to him, “fungibility is the only property of sound money that is missing from Bitcoin & Litecoin.”

He added that because the “scaling debate” was longer an issue, “the next battleground will be on fungibility and privacy.”

The developer concludes his tweet by saying that he will focus on having private transactions implemented in Litecoin.

“I am now focused on making Litecoin more fungible by adding Confidential Transactions.”

An enthusiast asked Lee what had settled the scaling debate, to which the LTC creator replied saying that SegWit and Lightning Network had.

Lee also explained that adding confidential transactions to Litecoin could be achieved through a soft fork- a modification to the source code to add certain features but which doesn’t lead to blockchain splits as it is witnessed during a hard fork.

For its Confidential Transactions, Litecoin will likely use the code from the Element project, for which Lee noted that blockchain firm Blockstream had made tremendous steps.

The privacy feature will be optional initially. Lee said:

“I think mandatory is much stronger privacy and fungibility, but it’s harder to reach consensus on doing.”

Fungibility in money (and crypto is money) implies that every unit of that given asset retains the same and exact value like every other similar asset and unit.

For Bitcoin (BTC), the question of fungibility has cropped up from time to time given the issue of some bitcoins becoming “tainted” when deemed to have been involved in criminal activities.

The effect is that these assets lack the desired anonymity and fungibility, which then means that the value of the so-called “tainted money” may decrease significantly.

The perception that Bitcoin and other cryptocurrencies had this weakness saw the emergence of privacy-focused coins like Monero (XMR), Zcash (ZEC) and Dash (DASH).

Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.

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