Topic: Why we need Litecoin: Privacy (Read 842 times)
Good post.
One reason we need Litecoin on all the exchanges is privacy. Right now, even using coin-mixers our coins are relatively easily traceable by watching the blockchain. If StrongCoin can unilaterally track the Ozcoin hack and seize coins, imagine what the government can do.
Litecoin will give us a true way to arbitrage between exchanges, but it will also give us privacy. Although transferring your BTC into and out of a shared exchange wallet is a good source of privacy, you are still vulnerable to being monitored and its still possible to cleverly deduce where the coins go. However if you transfer BTC into an exchange, buy LTC and transfer LTC out, you are clean- untraceable. You need only worry about the exchange tracking you- and there will always be "black market" exchanges like BTC operating. It's impossible to determine if the BTC you transfered in, got transfered back out, or LTC got transfered out or vice versa.
This is the level of privacy we need- two blockchains that don't mix, so we can't be tracked. This is what LTC on Gox will give us, and it will make LTC priceless as it helps to fulfill the goal of anonymity.
Litecoin will give us a true way to arbitrage between exchanges, but it will also give us privacy. Although transferring your BTC into and out of a shared exchange wallet is a good source of privacy, you are still vulnerable to being monitored and its still possible to cleverly deduce where the coins go. However if you transfer BTC into an exchange, buy LTC and transfer LTC out, you are clean- untraceable. You need only worry about the exchange tracking you- and there will always be "black market" exchanges like BTC operating. It's impossible to determine if the BTC you transfered in, got transfered back out, or LTC got transfered out or vice versa.
This is the level of privacy we need- two blockchains that don't mix, so we can't be tracked. This is what LTC on Gox will give us, and it will make LTC priceless as it helps to fulfill the goal of anonymity.
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