MimbleWimble is one of the most innovative crypto and blockchain projects in the crypto market. The main difference between MimbleWimble and other projects is related to the way in which transactions are stored and structured. The main benefit of MimbleWimble is related to increased privacy featured.
Over the last years, MimbleWimble has been developed and it attracted several supporters. The technology promises to improve privacy in some virtual currencies and blockchain networks. For example, Litecoin (LTC) is one of the virtual currencies that decided to implement MimbleWimble.
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MimbleWimble is a blockchain implementation that makes it possible for networks to become more private, faster and easier to handle. If users want to hide their data from transactions, then it si definitely a great way to use MimbleWimble.
Why? Because through MimbleWimble there are no identifiable addresses that could be reused over time. This helps users transacting on the network to share addresses that do not provide information about private transactions. Is like sending just a first transaction to this address.
In order to achieve this, MimbleWimble uses a feature that is known as cut-through. This reduces the block data and makes it possible to delete the information about each of the transactions.
Furthermore, MimbleWimble makes it possible to use confidential transactions. This increases privacy for those that use the network and hides the amounts that the blockchain is transferring. Although this implementation make take several years to be implemented on Bitcoin, it is expected to be implemented on the LItecoin (LTC) network in the near future.
Litecoin (LTC) is one of the oldest and most popular cryptocurrencies in the world. It was created by Chearlie Lee in 2011 and it is faster and cheaper to use than Bitcoin. It shares many common things with BTC. Some analysts claim that Liteocin works as a testing network for new implementations that are then added to the Bitcoin network.
As a public blockchain, using Litecoin is not private, despite claims of mainstream media that virtual currencies are private. Litecoin is working side by side with Mimblewimble developers in order to be able to add confidential transactions to the Litecoin network.
This would make it possible for LTC to become the largest virtual currency in the world using privacy solutions. There are several privacy currencies in the market, but having confidential transactions implemented in one of the largest is very important for privacy and blockchain reliability.
Privacy currencies are digital assets that focus on privacy. These protect users’ information and make it more private for individuals or companies to send or receive transactions. Nowadays, when we use Bitcoin (BTC), Ethereum (ETH) or Litecoin (LTC) we know that we are using virtual currencies with public blockchains.
All the information that we share through these public blockchains is accessible to everyone interested in it. Indeed, it could be used to analyse transaction patterns, the congestion of a network, but it can also be used to link specific transactions with individuals.
Some blockchain analysis companies can link a transaction or wallet address (which shows the information of previous transactions, funds they hold and more. This definitely hurts the way in which we use blockchain technology, as all our data is available to the world. There are some projects such as Mimblewimble implementations that would make it easier for blockchain networks to protect users’ data.
In a world in which all our data is collected and used for commercial purposes (among other things), privacy becomes a privilege rather than a right. This is why the blockchain industry and cryptocurrencies are trying to offer the solutions we need to be protected.
Digital assets were able to reduce our dependency on traditional financial institutions. Transfers and financial services are not used anymore through centralized authorities. We are now able to use decentralized networks that do not depend on a centralized government or company.
However, few digital assets offer reliable services and privacy. Monero (XMR) is the best example of a successful, secure and easy to use virtual currency. With the MimbleWimble implementation on Litecoin, privacy solutions will be larger and easier to be executed by users from all over the world.
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