Charlie Lee, the founder of Litecoin (LTC), appeared at this year’s PROOF of Work Summit in Frankfurt, Germany to compare Litecoin privacy functions with almost inevitable transparency of the Bitcoin network (BTC).
Lee explained that the unsweetened transaction outputs (UTXOS), which are at the heart of the Bitcoin Book, have the history of issuing transactions – potentially ruining the fineness of digital assets. Lee told the audience:
“Due to the story associated with each Bitcoin released, each bitcoin is not equal to other bitcoins – which in my opinion is important for money.”
The hypothetical example of this would be the Onchain analytical company, which attaches the labels to the Bitcoin address, which is considered related to illegal activities. The label may discourage investors or traders of accepting BTC related to the address – reducing the market price of these specific coins and SAT.
In addition, if the discussed bitcoins go through centralized exchanges or other institutions from Know Your Controls, assets may be frozen or confiscated On the order of government authorities, such as the control of foreign assets of the United States (OFAC).
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The fight for privacy is focused
Privacy in the Bitcoin network is extremely arduous, but not impossible. On September 20, a mysterious group of developers announced a fork with the Samourai portfolio.
The Open Source Ashigaru project uses Coinjoin and other mechanisms for masking bitcoin transactions and is based on the work of the original Samourai team – although the recent Ashigar team refused to do anything with previous programmers.
Paul Brody, the global leader of Blockchain in EY, recently told Cointelegraph on token2049 that the lack of privacy hinders the reception of blockchain. The manager explained that privacy counts, especially in the case of gigantic institutions that must maintain certain private information.
The companies “very willingly tell you how much a lot of coal save,” said Brody. “They just don’t want you to see it for a week or every day during a week.”
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