As of now, the market is 8. MimbleWimble, the highly anticipated privacy upgrade of Litecoin
, the largest cryptocurrency, is an important step for investors to open the way for Litecoin to buy and sell or transfer in “trust” and “privacy” . Another feature of this technology, which does not add any other information to the transfer details except for some necessary data with this update, is that it does not contain address and amount information .
Before continuing with the article, let’s make the subject more easily understood through an example:
Ali buys 5 MimbleWimble coins from Alice and Fatima. Later, Ali sends these 10 coins to Hayriye. The transaction takes place, but not everyone will be able to see the details of this transfer. Hayriye will not be able to see the historical movements of these coins. All he knows is that Ali sent him 10 coins.
MimbleWimble has three main differences when compared to other existing blockchain platforms:
1. Privacy
There is no transaction history that can be traced back to MimbleWimble. Transaction details are hidden, increasing users’ privacy.
2. Interchangeability
MimbleWimble has more flexibility compared to Bitcoin. This is because it can trade any cryptocurrency on its platform without the risk of loss. Cryptocurrencies can lose value, especially when they are associated with illegal activities. In parallel, MimbleWimble’s privacy application prevents this loss of value.
3. Scalability
With the MimbleWimble update, block sizes are much smaller than Bitcoin’s, making them more scalable than most blockchains. There are common features with Bitcoin Cash (BCH), which aims to change the block size limit.
It is possible to mention the advantages of this update, as well as its disadvantages:
- Systems that support “privacy” practices are doomed to slow processing speeds due to their data size.
- Because MimbleWimble relies on digital signatures, it is vulnerable to attacks carried out through quantum computers.
MimbleWimble is a huge step forward in protecting privacy. MimbleWimble; Private transactions, when implemented on the Litecoin network, will be an extra reason for cryptocurrency investors to use Litecoin
in their day-to-day trading. While confidential transactions may not provide 100% privacy, they will increase the demand for LTC and possibly its value in the markets.
