Here's a pretty in-depth
article about how it all works. I honestly don't see why this can't also be integrated with BTC, if miners signaled for it... maybe there's a good reason but I don't know what it is.
the article is not indepth at all
70% of the article just tells you about bitcoin and litecoin.. then it just says MWEB offers privacy due to confidentiality, and thus uses confidentiality to give privacy
its just a bundles of words shuved together that doesnt go in depth at all
so lets explain
you lock funds up and then in a different network those coins are grouped together and pegged where in this other network it only publishes a hash instead of a whole transaction in raw format. this hash is for the group to work within and together where by when in the group outsiders cant see the raw data of your transaction because only the hash is published.
you personally wont see your transaction on the "extended block" or the litecoin network
but when you want to exit the group you then become individual again and now your funds are normal litecoin transactions on the litecoin network
the major downside is your funds are part of a group fund and then when in the group you are then only playing with pegged units that are not audited by the litecoin network
for instance
here is someone locking in ~4.25LTC into the group (of ~29k ltc) of the other network group stash
lock:
https://blockchair.com/litecoin/transaction/dd375cbbc377b7e6d1985a4a201b661ccc8db124811a9efaac6e63edbf646485combining:
https://blockchair.com/litecoin/transaction/afdfb3e076b9a355fab8057e21585364efe4cee86fb69fcc8d9c0c0787b57ecdits not making your payments private. its instead you giving away your coin to a group so you can then make silly private IOU pegged notes to each other in a separate network not seen by the litecoin network