Litecoin surges 14% after Mimblewimble privacy protocol announcement

Litecoin has jumped into fourth position by market capitalisation after it announced its partnership with the new blockchain protocol with a Harry Potter-inspired name.

Yesterday, the Litecoin Foundation announced it had approached Beam about a cooperation to implement Mimblewimble via Extension Blocks on Litecoin.

 

MimbleWimble is a blockchain-based privacy protocol with a focus on scalability. The benefit of the protocol is that it doesn’t relay any traceable information within a given transaction, while simultaneously verifying both the sender and receiver’s private keys. It’s more efficient compared to similar technology such as that implemented by Zcash because the blockchain is more compact – just 30% the size of Bitcoin’s.

In an echo of Satoshi Nakamoto, MimbleWimble is a protocol that was put forward by an anonymous user in a Bitcoin developers’ chatroom by the name of Tom Elvis Jedusor – the French name of fictional Harry Potter character, Voldemort. Mimblewimble itself is the name of a spell used to tongue-tie victims in Harry Potter. Jedusor left a link to a whitepaper in which he outlines that by using the Mimblewimble protocol, the privacy and scalability of the Bitcoin network could significantly be enhanced.

The Mimblewimble protocol is currently used by the recently launched Grincoin and Beam. Grin is a community-driven funding model, whereas Beam is a for-profit company.

The Litecoin foundation says the cooperation with Beam will allow on-chain conversion of regular LTC into a Mimblewimble variant of LTC and vice versa. Upon such conversion, it will be possible to transact with Mimblewimble LTC in complete confidentiality.