Litecoin rose by 30% within a day, after the announcement of a partnership with the Beam privacy coin. The goal of this partnership is the integration of confidential transactions into the Litecoin blockchain. The team around Charlie Lee (Founder of Litecoin) has begun investigating how to implement confidential transactions through the so-called MimbleWimble protocol.
Beam? What is it?
The Beam cryptocurrency is the first blockchain based on the MimbleWimble protocol. The goal is to offer a more comprehensive set of privacy solutions than Monero and Zcash. The new protocol allows users to add another security layer to their transaction by encrypting all transactional data and CoinJoin’s feature to combine multiple data sets of transactions for better protection from prying eyes. It should be noted that even though the MimbleWimble protocol is highly promising for the future of privacy transaction, it is still in its early stages and highly experimental.
Privacy is not not risk free
The partnership has also been criticized as risky, as additional privacy features may force larger regulated exchanges to remove LTC from their platforms due to regulatory demands.
The overall market
The market as a whole reacted positively as well, and we saw gains across the board with nearly all cryptos gaining 5% or more within the day. Litecoin has gained over 30% after the cooperation between LTC and Beam came to light. Litecoin’s push however does not seem to be enough to push the market out of its depression as the market prices and cap have stabilized again after just 2 days of good gains. As it stands the community will need bigger events to switch gears before we will see another bullrun.