About Litecoin
Litecoin (LTC) was created in 2011 by Charlie Lee, a former Google engineer, as a "lite" version of Bitcoin. It uses the Scrypt hashing algorithm instead of Bitcoin's SHA-256, produces blocks every 2.5 minutes (vs Bitcoin's 10 minutes), and has a maximum supply of 84 million coins (vs Bitcoin's 21 million).
LTC has historically been regarded as faster and cheaper for smaller payments. However, like Bitcoin, it operates on a fully transparent blockchain. In 2022, Litecoin activated the MimbleWimble Extension Blocks (MWEB) upgrade, which introduced optional confidential transactions — the first optional privacy layer on Litecoin.
Understanding MWEB (MimbleWimble Extension Blocks)
MimbleWimble is a blockchain protocol originally proposed in 2016. Its key properties:
- Confidential Transactions: Transaction amounts are hidden using Pedersen commitments and range proofs
- Transaction Cut-Through: Intermediate transaction outputs that are spent in the same block can be eliminated, reducing blockchain bloat
- No Addresses: In native MWEB, transactions use blinding factors rather than addresses, making linkability harder
Critical Limitation: MWEB is optional and requires user action to use. Most LTC transactions do not use MWEB. Blockchain analytics firms can observe when LTC enters or exits MWEB, creating potential correlation points. MWEB privacy is far weaker than Monero's mandatory ring signature system.
How to Buy LTC Privately
Acquire LTC
Litecoin is available on most major exchanges (Kraken, Binance, Coinbase). For reduced KYC exposure, Bitcoin ATMs often support LTC in addition to BTC. Peer-to-peer platforms like Bisq also support LTC trading without identity verification.
Use the Official Litecoin Core Wallet or Electrum-LTC
Download the official Litecoin Core wallet from litecoin.org. For lightweight usage, Electrum-LTC is a community-maintained option. Both support MWEB if you choose to use it.
Enable MWEB for Privacy Transactions
In the Litecoin Core wallet, MWEB is available as an optional feature. When sending LTC intended for privacy-sensitive use, use MWEB-enabled transaction types. Be aware of the pegging-in and pegging-out transactions that are visible on the main chain when funds move between standard LTC and MWEB.
Deposit to Marketplace via Tor
Access the marketplace via Tor Browser, generate a deposit address, and send from your personal MWEB-enabled wallet. As with all cryptocurrencies, never send directly from an exchange to the marketplace.