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Charlie Lee is the founder of Litecoin and discusses the importance of fungibility for some time now. In a recent interview with Coin Insider, Charlie Lee decided to raise the issue and gave them a glimpse of his recent thinking by saying: "Thus, transactions like confidential transactions will bring us closer to good privacy and good fungibility, and that is something I am currently exploring for Litecoin."
For those who do not know, "In economics, fungibility is the property of a good or commodity whose individual units are essentially interchangeable."
The underlying idea is relatively simple if one coin has more value than another due to its transaction history or if currency units face restrictions due to their location, the currency is not fungible . This becomes a problem for prudent people when a transaction reveals all the balance. This can prevent customers from buying their crypto-currencies.
Confidentiality and fungibility are two related aspects. If no one knows that the dollar in your wallet has ever belonged to a famous movie star or a reputable criminal, all units are identical and can be exchanged for one another. In order to allow this perfect scenario of undiscriminated trading, the founder of Litecoin is studying the addition of confidential transactions since last year.
It was not until January 28 that the founder of Litecoin officially announced that confidential transactions would be added via a flexible range. As Charlie Lee says, he is now "Aimed at making litecoin more fungible by adding confidential transactions."
Fungibility is the only property of the healthy money that Bitcoin & Litecoin lacks. Now that the debate on scale is behind us, the next battleground will be fungibility and privacy.
I am now looking to make Litecoin more fungible by adding confidential transactions. ?
– Charlie Lee [LTC⚡] (@SatoshiLite) January 28, 2019
For those unfamiliar with confidential transactions, sometimes known as CT, is referring to a technology invented by Gregory Maxwell, a developer of Bitcoin Core developer, Gregory Maxwell, "That allow both the amount sent and the recipient's address to remain hidden. This is a great way to obscure transactions and allow Litecoin's merchants to benefit from greater fungibility, but this is not a perfect method of privacy. " In addition, confidential transactions will be optional, but "It will be much more expensive because of the increased data flow and the need to create more confidential addresses during the process, thus taking up more space.
What are your thoughts? Tell us what you think down in the comments!
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