Litecoin Mimblewimble Extension Block (MWEB)
Privacy and fungibility1 will be the two most important characteristics of non-state-controllable cryptocurrencies in the future. While pseudonymity was sufficient in the early days of Bitcoin (and Litecoin), the events in Canada and Ukraine make it increasingly clear why this will not be the case in the future. All non-private cryptocurrencies also have limited fungibility, which ultimately destroys a cryptocurrency.
Achieving blockchain privacy and fungibility without sacrificing scalability has been an insurmountable challenge. Privacy-enhancing upgrades such as zk-SNARKS and Confidential Transactions typically result in lower transaction capacity, increased storage requirements and greater computing power.
Mimblewimble2 is the only blockchain protocol that combines privacy with high scalability in a unique and simple way. What was previously only possible through cumbersome and sometimes highly complex processes is a byproduct with Mimblewimble. The invention of the Mimblewimble protocol represents a watershed in the development of private and fungible cryptocurrencies, making other privacy coin protocols obsolete.3
To address Litecoin's limited fungibility, the developers chose to integrate the Mimblewimble (MW) protocol as Extension Block (EB). MWEB can be viewed as a second chain that runs together with the main chain, similar to a multi-lane highway. Traffic on both lanes flows at exactly the same rate. It is possible to switch from one lane to the other at any time. One can either transact on the Litecoin main chain without ever having to switch to the MWEB or, conversely, one can stay on the MWEB. The MWEB is an opt-in system, the use is voluntary.
Privacy and fungibility are not the only benefits offered by the MWEB. Transactions that take place on the extension layer do not take up space on the main Litecoin chain, thus scaling increases without having to change the block size of the main chain.
There are two reasons why the use of MWEB is introduced as optional.
Purely private cryptocurrencies face increasing government reprisals. There is a threat of delisting from state-controlled centralized exchanges, which would result in decreasing liquidity.
With mandatory use of MWEB, Litecoin would have to compete with purely Mimblewimble-based modern cryptocurrencies such as EPIC Cash, where it would be hopelessly inferior from a purely technical point of view, as it would have to drag along the old blockchain as a legacy without gaining any benefit from it.
Litecoin already has a blockchain size of 70 GB (EPIC Cash 2.5 GB), which rules out many uses, such as a full node wallet or mining on cell phones, from the outset. The decentralization (Litecoin 1200 nodes) is significantly lower compared to EPIC Cash (8000 nodes) due to the blockchain size. Litecoin is fully monitored similar to Bitcoin, making those who choose the MWEB option immediately suspicious. Without their own full node, which very few Litecoin users operate because of the large blockchain, they are dependent on foreign nodes, of which they do not know who is operating it and who is accessing which data there.
On the surface, MWEB is a real advance and selling point, but on closer inspection, MWEB cannot deliver what is promised. Optional anonymity is not real anonymity, because at the time when you switch from the main chain to MWEB, you are still identifiable and thus make yourself suspicious.
It is better to go straight for the pure Mimblewimble solution, such as EPIC Cash, which is designed according to the Bitcoin standard designed by Satoshi Nakamoto. A scalable, anonymous and private sound money with a maximum of 21 million coins, fast, fungible and low cost. A green & secure polyphasic proof of work consensus mechanism allows mining with low investment and opens up the possibility of billions of full nodes, even on mobile. It was launched fairly with no ICO, no premining or even team tokens. No corporation or foundation is behind it. It is community driven and run by a growing number of volunteers.
For more information, please visit www.epiccash.com