Creator of Litecoin Charlie Lee recently revealed that he is working on solutions to bring privacy and fungibility to the Litecoin network. The Litecoin foundation is also working with Beam to integrate confidentialÂ transactions into Litecoin using Mimble Wimble technology.
Litecoin has served as a testbed for Bitcoin to integrate new technological solutions, Segwit was first implemented on the Litecoin network successfully before Bitcoin. Now the developers seem to be taking the next step towards improving the technology by adding privacy and fungibility features which are core to the Cypherpunk and sound money Ethos.
As per Charlie’s announcement, the core developers are planning to integrate Mimble Wimble extension Blocks.What are Extension Blocks?
The concept of Extension Blocks (Auxiliary Blocks) was first introduced by a Bitcoin developer namedÂ Johnson Lau back in 2013. The solution aimed at effectively increasing the Block size via a soft fork without needing to split the network. The extension blocks feature will be optional to users without forcing anyone to do opt into anything that they do no desire.
An extension block is pegged along with the main blocks but is not Cryptographically linked to other blocks. So the extension blocks can effectively be increased to whatever size one wishes and can also support various features such as smart contracts and privacy without disrupting the main Blockchain.
Andrew Lee from Purse.io defines Extension Blocks in his article as follows:“Extension Blocks enable larger blocks through an opt-in second layer for true on-chain capacity increase.”
Lee also draws a table highlighting its benefits:
Image Source: Purse.io blog
Charlie Lee took on Twitter to explain that the concept of extension blocks are similar to sidechains and would be integrated into the main chain as an opt-in feature which means that users and wallets could choose to implemen...