The Litecoin Foundation has announced the creation of a dedicated fund to support the ongoing development of privacy features for Litecoin and is calling for community members to donate.
On Tuesday, the Singapore-based non-profit said on LitecoinTalk the fund will finance the efforts of David Burkett, the Grin developer currently working to bring confidential transactions to Litecoin via MimbleWimble extension blocks (EBs).
Burkett, Litecoin creator Charlie Lee, and Litecoin developer Andrew Yang architected the push for privacy earlier this year, announcing in two proposals that the ability to send confidential transactions was needed to protect the fungibility of LTC. The foundation’s latest post explains:
“If Litecoin is going to be adopted by mainstream users and businesses, we need to provide financial privacy. For example, fungibility helps protect users from having their transactions or balances readily accessible on the blockchain for criminals to identify attractive targets. “
Merger for Growth
Technically only half of the fund’s proceeds will be used for work on the Litecoin-MimbleWimble integration. The other half is to finance Burkett’s work on Grin++, an open-source wallet and node client for Grin that will be used in Litecoin’s extension blocks — the foundation explained that for this reason, they had a vested interest in funding the development of Grin++.
The fund is targeting a total of $72,000 to compensate Burkett at a rate of $6,000 per month for the next 12 months, as he will purportedly be working 30 hours a week split evenly between the two “mutually beneficial” projects.
The Litecoin Foundation — which is headed up by Lee — has pitched in $5,450 worth of LTC and BTC to kickstart the crowdfunding effort, and at time of press has received 5 LTC (roughly $221) from donors.
What Litecoin Is?
Litecoin (LTC) is a peer-to-peer cryptocurrency and open-source software project released under the MIT/X11 license. Creation and transfer of coins is based on an open source cryptographic protocol and is not managed by any central authority. Litecoin was an early bitcoin spinoff or altcoin, starting in October 2011. In technical details, litecoin is nearly identical to Bitcoin.
Litecoin was released via an open-source client on GitHub on October 7, 2011 by Charlie Lee, a Google employee and former Engineering Director at Coinbase. The Litecoin network went live on October 13, 2011. It was a fork of the Bitcoin Core client, differing primarily by having a decreased block generation time (2.5 minutes), increased maximum number of coins, different hashing algorithm (scrypt, instead of SHA-256), and a slightly modified GUI.
During the month of November 2013, the aggregate value of Litecoin experienced massive growth which included a 100% leap within 24 hours.
In May 2017, Litecoin became the first of the top 5 (by market cap) cryptocurrencies to adopt Segregated Witness. Later in May of the same year, the first Lightning Network transaction was completed through Litecoin, transferring 0.00000001 LTC from Zürich to San Francisco in under one second.
Litecoin is different in some ways from Bitcoin:
- The Litecoin Network aims to process a block every 2.5 minutes, rather than Bitcoin’s 10 minutes. This allows Litecoin to confirm transactions much faster than Bitcoin.
- Litecoin uses scrypt in its proof-of-work algorithm, a sequential memory-hard function requiring asymptotically more memory than an algorithm which is not memory-hard.
Due to Litecoin’s use of the scrypt algorithm, FPGA and ASIC devices made for mining Litecoin are more complicated to create and more expensive to produce than they are for Bitcoin, which uses SHA-256.