How Enhanced Privacy and Scalability Will Make “Litecoin 2.0” | Interview With Charlie Lee

I think being boring is good for money you want it to be stable and you want to actually work and like when it's worked like flawlessly over the past nine years it takes forever to get anything kind of implement on Bitcoin because consensus is slow with like coin if we want to do something we can move pretty fast on it what's up YouTube I'm your host Giovanni and I have the pleasure to be joined today by Charlie Lee creator of light coin thanks for joining us Charlie thanks for having me in a previous interview you define light coin as boring compared to other coins why do you think so and do you see it is a plus or a minus well I think it's it's boring because people at wealthy people think it's boring because it's kind of very similar to Bitcoin we don't do anything like crazy and anything very risky because I think we want to keep it like money right it should be stable it should be conservative so because of that people think it's boring I think that part about that is it's hard for us to attract developers because while we do want to work on like coin they can work on Bitcoin or some other like more fancy coin that is doing crazy stuff but a good thing is I think being boring it's good for money right just like Bitcoin is is conservative you don't want money to be like taking risks right it's not I don't think it's good to kind of take the approach of build fast and break things with with money when you want it to be stable and you want if you actually work and like when that's worked like honestly over the past nine years so that's good during our last interview almost a year ago you said that fungibility and privacy were the main features that you wanted to improve in light wine and also that you would like to see it as improved in Bitcoin what achievement in this direction have been reached since then yeah so I did mention that I think fungibility and privacy is one of like the the main feature of good money that's missing in in bitcoin and litecoin and that's something I'm focused on right now so what we're doing right now is we're working on adding nimble Wimble to tea light coin with switch extension blocks and this is something we've been working on since late last year it's been it's been going well we're targeting and of this summer for a for a test at launch and if that goes well then we'll launch it soon after that and get it activated and deployed on like when you said that it will involve some risks related to the possibility of hidden inflation can explain exactly what these risks are yeah so with the current way bitcoin and litecoin works everything that the ledgers is transparent right it's open to for public to see so you can so you can see exactly how many coins exist how many coins are mined every every kind of new block is created so from from that you can see that bitcoin will have at most 21 million coins and like one will have had most 84 million coins the thing with privacy coins is kind of the nature of privacy coins where the amount of coins being transacted is hidden all right so you can't tell how many coins someone holds you can't tell using math and cryptography you can kind of try to ensure that no coins are created other fin there but if there's a bug in a code or something wrong with the with the crypto then potentially there could be hidden inflation where someone actually creates coin out of thin air like doubles there are a number of coins and because no one can see the ledger it's it's not transparent you can't easily tell that extra coins were created so that's a risk with with any private coins Z cash Monaro or member one more points yeah so why do you think people will be willing to run this risk and use like coins privacy feature the reason why people would use something that has this inherent risk of hidden inflation is because the privacy is is really important to people and also the way we're doing it we're using extension blocks to to implement member wendel so all the potential hidden inflation is isolated in extension blocks so unless you're using the member wem extension blocks you have no risk of your coins being having any hidden inflation so I guess people will kind of take it slow right it'll take some time before people will trust that member one boys is safe or the way we implement it is it's good enough so over time as it becomes clear that there isn't any hidden inflation people will start using it more so basically what you mean is that as long as this hidden inflation remains a possibility on the layer to that risk is not going to affect the the whole layer one of litecoin yeah so the layer one of litecoin if you consider this layer one and layer two right so layer one on litecoin is the main chain which is transparent when people move coins from the main change at extension blocks they it's a transaction you can see people it's you can see them sending coins to a specific address associated with the member when Bo extension block so for that address will hold like all the balance on the member one beside and then when someone withdraws or moves money from the window back to the main chain coins will cannot come out of that address to a transparent address on the on the main chain so all the potential issues with member window is isolated to only the coins in the extension block but talking about what you just said so that people are very much interested in privacy I are you sure though because as far as I can see a lot of people don't care about privacy that much at the end of the day people are all the time show sharing stuff on the social and social media it seems that privacy is not exactly the the thing people are looking for the most don't you think that people are more concerned about other things like for example quickness in transfers comfort in making transfers instead of having privacy yeah so coins like Z cash and Manero like probably two of the most prominent privacy coins out there they're not being used that much today because the there's a lot of trade-offs right trade-offs with user experience mostly to trade-off with user experience right so people prefer something that's fast and easy if you use over something that is much harder to use but that adds a little bit more privacy I probably agree that is the case so we want to find a good kind of trade-off where it's private and still easy to use all right so that's what we're targeting so if given that people would choose privacy over non privacy right if the trade-offs are makes sense but I do I do agree a lot of people are giving up their privacy willingly today in social media posting about all their personal information but I think over time people will well realize how important privacy is I mean we're starting to see PC today where a lot of people are really against Facebook because of the misuse of your private information and I think this is even a lot more important with with money you want your money to be you want full control of your money you don't want someone to you for a transaction that even today right if I send you some light coins you can look at the block Explorer and see potentially see how many like coins I have or where I got it from or where I spent like coins and that's not that's not good for for money in the crypto space there are a lot of cryptocurrency leaders which are often promoting their own coins and criticizing Bitcoin others call themselves Bitcoin maximalist and see all other coins as coins conversely you have been taking a far less conflictual approach in a recent interview even said that before investing litecoin people should first invest in Bitcoin so what is the rationale behind this no conflict approach I've always thought that bitcoin is fake when is the King getting a crypto right so I think bitcoin has the least amount of risk of it succeeding so I think in terms of like an investment portfolio people should should definitely invest in Bitcoin in the in addition to you like corn or whatever other coins they want to invested but bitcoin is a safest of all Kryptos I think for investment purposes so I think bitcoin is so like point I think works hand in hand with Bitcoin I'd like to see both being used I think they both work well together and that's kind of my approach to all of this I just remember that on Twitter you have this image of Vegeta and Goku so Goku would be Bitcoin and Vegeta would be litecoin right something like that yeah Vegeta will always try to best Goku but never succeed but they help each other out light coins mean advantage compared with Bitcoin is higher transaction speed and lower costs other coins such as Bitcoin cash are also betting on these characteristics what is the competitive advantage of light coin compared to Bitcoin cash I think it's because we we follow more closely to the to the Bitcoin world map I think a successful form of cryptocurrency or a form of money needs to be decentralized insecure first and foremost and that's that's our approach it's important for for like coin just like Bitcoin to be decentralized insecure Bitcoin cash is the security of Bitcoin cash is nowhere near that of like point cuz Vikram cash is hash trade is dominated by Bitcoin so it's very easy for a small minor or a small Bitcoin pool to atactic own cash so the security is not there for like coin and like one dominates the script mining ecosystem so the security is is really top-notch and I think litecoin aims to be more more decentralized right so one thing about litecoin is is I'm still around so because of that it's it's less decentralized in Bitcoin but over time I'm going to step step away and let daiquan become more more decentralized how do you measure these degrees of decentralization in this case it's really hard to measure but the thing with with Bitcoin cash is basically they are doing like hard Forks every every six months or at least I think that's the specter they're doing it and in order to do that it has to be very centralized there's some group of people small group of people or it's making this decision about what to add to Bitcoin cash and that makes it very very centralized you often point out that when you launched litecoin there was no pre-mining leading to a large amount of coins concentrating in a few hands how do you think this feature is going to benefit litecoin in the long term in the long run um in the long run when people use Bitcoin litecoin as money it's important that the launch is fair in my opinion right it's not you don't want to be using money that that enriches their the rich right today with with kind of what's happening with with fiat currencies right so you want something that is that is fair everyone has their fair chance of getting in and I think that that would be good for a long time for litecoin and you think that for Bitcoin this is a fundamental flaw no I don't think it's a it's a flaw in Bitcoin me it is true that Satoshi mind like quite a bit of coins initially but just like same thing with like when people Gandhi like on early we're able to mine a lot more coins and people were getting today but I don't think we've quite like on anything they're both they're both fair pair launches so once the fungibility and privacy goal will be achieved what is the next step in the evolution of litecoin I don't think fungibility and privacy will ever be achieved I think it's be a constant kind of battle – for litecoin and they're going to become more private and more fungible because there's always trade-offs involved I honestly I haven't looked ahead past that because I don't think that's the better that that's easily won so you are you're basically saying that fungibility and privacy are gonna be the battlefield you're gonna be busy with for the long term period and you don't have any other interests or not interests but you don't have any other characteristic that you would like to implement into life coin so I mean there's there's quite a few things right so fungibility and privacy is important I think we'll always try to have better way see scale the coin right I think scalability is is also one of the trade-offs we had to make with with decentralization and security so trying to make like coin the coin scale to billions of users that's always a hard problem right currently does the way is to scale on chain as much as you can without sacrificing decentralization and then also scale on layer 2 solutions like lightning Network and member window-eyes extension blocks can also help things scale the reason one of the reasons why I chose member Wimble over other privacy tech is because of the ability for it to scale right it does privacy and scales really well compared to other implementations like ring signature with Mineiro or seek a snarky cash member when most kills the best you said that you plan to step away from litecoin as soon as it gets to a certain level of maturity what are your plans for the future after that what I mean was stepping away first of all is I think over time so like coin right now works well with me around so that's one thing about difference being like when in Bitcoin right with with someone like the Creator around a coin I can have a lot of influence over the coin and I think things can be more more efficient right or things can move faster so with Bitcoin it's it takes forever to get anything kind of implement on Bitcoin because consensus is slow it's hard to you achieve consensus on some things and hard to slow to implement with like coin if we want to do something we can go pretty fast on it so that's that's one of the benefit but obviously the the bad thing with a creative Ron is the creator has like more control more influence over the project so if it's kind of like the balance benevolent dictator situation where the dictator does something becomes evil then the whole country or whole project goes bad right so but I think over time as like corn becomes more more used there's less reason for for me to stick around right I can potentially do more more harm than good and when that time comes I'm going to slowly like kind of give up my influence and get out of the picture and I think that's when that comes like I'm gonna become more decentralized and I think will be better for everyone it came it came to my mind the comparison with the maker Dow Foundation so they make it up Foundation is also trying to gradually dissolve and give all the power to the maker Dow community so do you imagine a future like this for the litecoin foundation the litecoin foundation I don't know specifically on make a doubt but a lot of coin foundations hold a lot of their pre mine coins and that's why they have like a lot of control so the litecoin foundation doesn't hold any pre mine coins obviously so its function is to take donations and make money from partnership and merchandise sales and put that money all towards development of litecoin and more adoption so I think that's always a good thing to have for a fund to support adoption of litecoin so i don't think like on foundation is going to kind of dissolve over time I actually wanted to become stronger and do more for for litecoin and you haven't you haven't told me what you plan to do once you gradually will step aside if you have any plans for your future as an intrapreneur as a as a technology entrepreneur I don't think I'm gonna do much else anything outside of crypto I think my whole I'm gonna be working on on cryptocurrency for for the rest of my life but if I step away from like coin I think I'm still gonna like work on stuff I don't know what yet thanks a lot Charlie for being with us yeah thank you that was Charlie founder at litecoin I'm Giovanni your host don't forget to like the video and subscribe to our Channel coin Telegraph like subscribe and huddle [Music]

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