The MimbleWimble upgrade concept was first proposed almost two and a half years ago. The new upgrade was released earlier this year after a majority of nodes approved the MimbleWimble (MWEB) update and will be able to interact with the new MWEB security features.
With the introduction of the MWEB Litecoin update, the cryptocurrency became more private and focused more on its on-chain security. While most crypto investors are welcoming this update, centralized crypto exchanges in countries like South Korea may delist Litecoin due to potential legal issues.
The new update, activated on block 2257920, aims to improve the security between the sender and receiver in a transaction. Mimblewimble Extension Blocks allows users to send coins to the expansion block and back to the main chain. In a word, MWED lets users make “confidential transactions” that hide the amount being sent. It basically makes it impossible to track a sent sum and is not taxed by the authorities in countries like South Korea. According to the developers, this upgrade also increases the network’s throughput and transaction processing speed.
Upbit is always looking to prevent money laundering and that is why they have to delist Litecoin if they see deposits to the exchange through Mimblewimble. They also added that deposits made through the new technology could result in permanent loss of funds as the exchange will not be available to verify the amount transacted or deposited. Bithumb has also expressed similar concerns.
While Litecoin’s upgrade worries centralized exchanges, it is welcomed by decentralized exchanges because of its safety and security. Litecoin was created in 2011 as one of the earliest competitors to Bitcoin. According to CoinMarketCap, it is the 18th most valuable cryptocurrency with a market cap of over $5 billion.
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