- This move comes after the developers postponed the previous launch due to poor participation.
- Per David Burkett, the activation of MimbleWimble relies on LTC miners and node operators.
- Implementing MimbleWimble would make LTC the largest coin with privacy features.
Litecoin developers have rolled out the MimbleWimble testnet once again. A report unveiled this news on October 6, noting that this move comes as European authorities continue scrutinizing privacy digital assets and solutions. Reportedly, the developers had previously launched the MimbleWimble testnet on September 30 but put it off because of low participation from the LTC community.
According to the report, the LTC community will have to test the MimbleWimble implementation once again. Allegedly, David Burkett, MimbleWimble’s lead developer will focus on a solution that will simplify the process of testing the functionality for non-technical Litecoin users. Additionally, Burkett will work on streamlining different parts of the code, which are fragile. Per Burkett, the protocol will be fully active in the coming year. He added that the decision of when to activate the protocol lies with Litecoin miners and node operators.
Through MimbleWimble, Litecoin users will benefit from privacy features that would protect their information while transacting with LTC. By protecting user information, the protocol would make LTC the largest crypto in the world with privacy features.
Increasing pressure from regulators
While implementing the MimbleWimble protocol has the potential to boost LTC’s adoption, this development would bring the network under the spotlight of European authorities. This is because European regulators are currently cracking down on cryptocurrency technologies promoting privacy. For instance, Europol is continuously criticizing privacy-focused coins. Apart from this, the agency claims that decentralized marketplaces, crypto mixers, and anonymous wallets are among the leading online organized crime threats.
The agency recently published its Internet Organized Crime Threat Assessment (IOCTA) report, asserting that,
“There has been an increase in the use of privacy-enhanced cryptocurrencies and an emergence of privacy-enhanced coinjoin concepts, such as Wasabi and Samurai.”
Europol added that,
“Darkweb threat actors increasing reliance on encrypted email services, privacy-enhanced cryptocurrencies and BPH providers pose a substantial problem to law enforcement. This calls for increased KYC type policies.”
Darkweb marketplaces are rapidly adopting privacy coins
According to Europol, Bitcoin (BTC) is still the most used cryptocurrency. However, privacy coins are quickly becoming a favourite for darknet users. For instance, Europol notes that Monero (XMR) is quickly becoming the most-established privacy coin for darknet transactions followed by Zcash (ZEC) next and Dash (DASH).