Charlie Lee announces intent to make Litecoin fungible and pursue confidential transactions

In what is welcome news for many in the cryptocurrency, and especially the Litecoin community, Charlie Lee today announced that Litecoin will be made more fungible, and that confidential transaction features will be implemented in a future release of the full node. Although Lee hasn’t put forward a specific time-frame for the release, he did suggest that he expected it to be implemented sometime in 2019.

Charlie Lee has long been interested in fungibility and incorporating Gregory Maxwell’s Confidential Transactions features to Litecoin. Confidential Transactions, in his opinion, offer a comprehensive solution to Litecoin’s fungibility problem and will finally allow it to be recognized as sound money. Now it would seem, however, that Lee has moved on from SegWit and is moving ahead to soft fork this in.

 

Source: Twitter

With Confidential Transactions, users will no longer be able to find out how many coins the other party owns, a useful tool for individual privacy and the security of financial transactions. This feature, like Zcash, will be optional only initially and not mandatory like Monero as although the latter offers more privacy and fungibility, it is difficult to achieve via consensus.

Charlie Lee also confirmed that Taproot, a feature that offers smart contract flexibility and more privacy options will also be part of such a release when ready. Taproot uses the Schnorr signature and combines it with the Merkle tree to offer more privacy solutions to the ever-increasing network and was first offered to be implemented on the Bitcoin network.

Source: Twitter

The move to add CT and make Litecoin more fungible does have its detractors, however. For instance, many on Reddit have pointed out that block size will be thrice the present size after CT is implemented (Charlie Lee has suggested that it isn’t a present concern though). Some have also suggested that making the CT and privacy features an opt-in would defeat the entire purpose of the development as often, users don’t even use them because of the added formality to a transaction.

Fungibility, or the ability of a good to hold equal value when interchanged with individual units of the same good has long been an issue for cryptocurrencies such as Litecoin and Bitcoin. Bitcoin, in fact, has long suggested that it is fungible. However, the fact that the Bitcoin blockchain’s pseudo-anonymity allows anyone to differentiate between clean and tainted coins, making the former more valuable than the latter, adversely affects the coin’s fungibility.


Source
Author: Jibin M George
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49% of the Bitcoin Lightning Network is occupied by one node

According to 1ml, Andreas Brekken, the CEO of Shitcoin.com occupies 49% of the Bitcoin [BTC] Lightning Network. Shitcoin has over 35 BTC on the Lightning Network and the portal has announced that this is for an upcoming review on the Lightning Network.



Andreas Brekken was the former Advisor at Kraken and Bitcoin.com. He has been a part of the Bitcoin community since 2011 and his website shitcoin.com is solely for criticizing crypto-projects. It also includes reviews of tokens such as Tron [TRX], EOS [EOS], IOTA [MIOTA].

The Bitcoin Lightning Network is a second layer payment protocol on top of the Bitcoin blockchain. It is a solution for the Bitcoin scalability issues. It allows 2 nodes to make an unlimited amount of transactions off the Bitcoin blockchain. The transactions are recorded on the blockchain only when the node channel is closed. The key features of the Lightning Network include instant payments, scalability, low cost and cross-chain atomic swaps.
An increase in the number of nodes on the Lightning Network results in an increase of the network’s capacity, as seen by the capacity doubling since 1st July 2018.

The current statistics of the Lightning Network are:
Number of Nodes: 2755
Number of Channels: 9159
Network Capacity: 72.29 BTC
Nodes with active channels: 2024
Out of the total network capacity, Shitcoin’s node holds 35 BTC leading it to occupy more than 48% of the total capacity of Lightning Network. The other node holds approximately 1% of the total capacity. This results in the nodes occupying 49% of the total capacity making it the largest amount of Bitcoin on the Lightning Network.

Moreover, Andreas has been continuously showing his interest in the Bitcoin Lightning Network. When questioned on his Lightning Network node on Twitter, he responded by saying that he was surprised no one noticed the nodes’ color choice.

Cyborgene, a Redditor says:
“I don’t think it’s one guy. Probably a company or a few miners together trying to grow their lightning channels capacity and become a medium. By the way, I am also setting up my Lighting Node”

Uvas, another Redditor says:
“Yes, I am very curious about what he has planned. My guess is that he is just going to shut them all down at once and see what happens.”
Some Redditors even argue that it could be a 51% attack but it does not apply here as the Lightning Network has no mining power.

Owlholic, a Redditor says:
“Well. True and not. It’s not the mining 51% attack but likely there is some downside of one player owning over half. Otherwise they wouldn’t do it!”

Since 49% of the Lightning Network is occupied by Brekken, only 51% of the Lightning Network is left for the other users. Unless there are more nodes added to the network, it might hamper the overall usability of the network.


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Author: Priya
Image Credit: Unsplash

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