Updated: Apr 17
As MWEB approaches its activation on Litecoin, it’s a great time to reflect on the unique position this places Litecoin in. Currently, Litecoin is one of the most accessible crypto currencies worldwide. Having been launched over 10 years ago and maintaining a 100% uptime.
Litecoin has positioned it as one of the most reliable crypto’s. It can be found on nearly every exchange and crypto ATM. In a world where crypto transacting continues to gain popularity and more merchants are accepting it, basic privacy has been brushed aside.
Currently, most require you to publicly broadcast how much money you’re moving. These actions are openly analyzable by people across the world.
Do you walk around with an open wallet while you’re at the store? Do you publish how much you spent at the store on Facebook after buying an item? The answers are likely no.
Most crypto currencies are currently designed to have every transaction and address publicly viewable. It’s not wise for people other than yourself to know how much you’re spending, for both ethical and security-related reasons. For a scenario, imagine that employees being paid in crypto are able to analyze the company’s holdings in their crypto addresses and how much they’re sending to other co-workers. Or, imagine a company that is receiving crypto payments from a partner that is now able to analyze how much crypto their trading partner holds, and how much they’re sending to others.
This is how the current state of how cryptos work. One can see how this environment can be catastrophic from a payments perspective, requiring the need for vast improvements in this area.
Litecoin’s MWEB upgrade, which is soon-to-be activated thanks to the current signaling support that is being shown by miners, will position Litecoin as the most-accessible cryptocurrency with transaction amount hiding features. This is a breakthrough, especially for Litecoin as it's one of the most highly liquid and accessible cryptocurrencies in the space. In other words, Litecoin’s MWEB “fixes this”. Not only will MWEB help hide amounts, but it’ll also act as a Litecoin block size increase.
MWEB will be optional for wallets to integrate and one could choose whether to transact on MWEB or continue transacting on the mainchain where amounts are public. Using MWEB, one wouldn’t have to worry about their simple grocery store transaction now being publicly broadcasted to the network for the world to see, resulting in having eyes other than your own on *your* address balance.
With the implementation of MWEB and the unique benefits it offers, LTC will take a leap forward in its use as a payments network. After activation, which is set to occur in just a few weeks, the next step will be for wallets/exchanges to begin integrating it. THEN, we can truly start having discussions about sound money.