The crypto firm, Litecoin Foundation, has reportedly published 2 fresh Litecoin Proposals for Improvement drafts aimed to function towards ascertaining privacy aspects of the network.
The Foundation states that both the proposals are intended to diminish and eliminate the risk around privacy linked to distributed ledger technology, that lets the transaction history to be tracked publicly.
The author of the proposal — Andrew Yang, David Burkett, and Charlie Lee, say that:
“Personal identifiable information collected from IP addresses, exchanges, or merchants can be leaked then tied to your addresses. Also, services, such as chain analysis, provide risk-scores based on whether or not any addresses that they have blacklisted appear in its transactional history. This results in some businesses treating these coins as ‘tainted’ and then sending them back to the owner, or worse yet, shutting down their account.”
The Foundation also gave links to the draft of proposals over Github, LIP-0003 MW & LIP-0002 EB.
To address these privacy issues, the firm is endeavoring to integrate the scalability, that it is supposed to be provided with the MimbleWimble’s privacy-driven program.
MimbleWimble is a kind of cryptographic protocol, also known by the name ‘Confidential Transactions,’ according to which trades can stay undercover yet can be validated. This lets them curb the double-spending while achieving boosted privacy.
These proposals are kicked off to enforce MimbleWimble to be a fresh transaction format via extension blocks. These blocks can be used besides the primary canonical blocks following an average 2 minutes 30-second interval. The documents illustrate the significance of opt-in integration and its effects on transaction privacy. They also highlight the way they are to handle the interaction of EBs with coins as well as canonical blockchain.
According to an earlier report, GRIN, the cryptocurrency that specializes in privacy, underwent its initial phase of hard-fork in-network in order to implement updates in its alliance algorithm, achieving a greater resistance for the ASIC miners. Earlier, a number of cryptocurrency news channels had noted the response of CEO of Cipher Trace, Dave Jevans. He had been asserting that the rules under the Task Force of Financial Action will induce a transition in illegal workouts from Bitcoin to the privacy coins.
He earlier said that,
“Cryptocurrency criminal activity continues to evolve and accelerate. Fortunately, pending global legislation will be hamstring many criminals, global gangs, and terrorist groups by greatly reducing their opportunities to launder.”
He insisted on “using blockchain analytics tools to aid in the legitimate investigation of criminals and terrorists using cryptocurrencies to hide their activities. However, given the new FATF rule and legitimate concerns for privacy, totally new technologies are required to maintain compliance with Anti-Money Laundering (AML) and Counter Terrorist Financing (CTF) regulations.” in a blog post.