The maker of Litecoin Charlie Lee recently held an open lecture in the air podcast Magical Crypto Friends. Lee spoke about the problems of interchangeability of cryptocurrencies, but also shared features of the economic models of Bitcoin and Litecoin. He was joined by CSO Blockstream Samson MOU, which illustrated this problem in a practical example.
Lessons on interoperability
The Creator of the “digital silver” noted that the privacy should be a key goal for all developers of cryptocurrency. The Litecoin team is already actively working in this direction earlier, Lee said about the integration of confidential transactions to the project.
His lecture Charlie started from the definition of the concept of “interchangeability”.
So, interchangeability assures us of the fact that every single coin is impossible to distinguish among the many similar coins. For example, if you want to pay 5 dollars for coffee, you don’t choose some kind of a special bill from your wallet. It should match or be higher than the price.
But with Bitcoin and Litecoin this scheme does not work. Financial regulators can track the “dirty bitcoin”, which participated in the trade of illegal goods or money laundering.
It’s not a good thing. Confidential transaction can help hide accurate information about how much you spend coins and where they were sent. So it is possible to ensure a sufficient level of anonymity.
Samson MOU believes cryptocurrencies in their current state are too weak tool for ensuring the decentralized financial system.
Some coins came from places on the Silk Road type, so some users don’t want to deal with them. Of course, it would be better if everyone received new bitcoins directly from miners. However, this fact shows the unreliability of the crypts as cash.
Even more interesting can be found in our cryptodata.
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