Litecoin’s future on centralized exchanges appears to be like shady with implementation of recent know-how
With the introduction of the MWEB Litecoin update, the cryptocurrency turns into extra personal and focuses extra on its on-chain safety. Whereas most cryptocurrency buyers are welcoming the replace, centralized and controlled cryptocurrency exchanges in nations like South Korea could provoke the delisting course of as a result of potential authorized points.
The primary problem with the brand new replace, which shall be activated on block 2257920, is improved confidentiality between senders and receivers in a transaction. Mimblewimble Extension Blocks enable customers to ship cash to the extension block and again to the principle chain.
Merely put, MWED opens up the risk of sending “confidential” transactions on a series that hides the quantity despatched. Basically, it makes the monitoring of a despatched sum inconceivable and nontaxable by authorities in nations like South Korea. Builders have additionally added that updates enhance the community’s throughput and transaction processing pace.
Capabilities much like the nameless transactions can be found on Monero cryptocurrency, which can be largely regulated in European and Asian legislatures and banned by essentially the most centralized cryptocurrency exchanges.
Based on Upbit’s announcement, the trade is all the time seeking to stop cash laundering, which is why they are going to haven’t any different selection however to delist Litecoin if they are going to see deposits to the trade through Mimblewimble.
The trade has additionally added that deposits made through the brand new know-how will result in a everlasting lack of funds for the reason that trade won’t be accessible to confirm the transacted quantity or the sender.
Whereas Litecoin’s place on massive CEXes is questionable, decentralized exchanges are welcoming new features that make Litecoin buying and selling safer and decentralized.