MimbleWimble Explained: Is It the New Game-Changing Crypto Privacy Protocol of the Future?

    As the crypto and blockchain development continue, developers are constantly trying to come up with new solutions for existing issues. One such solution is a protocol called MimbleWimble, named after a curse from the Harry Potter franchise.

    The protocol shares a lot of similarities with Bitcoin's own blockchain, as it aims to deliver privacy features inspired by several different technologies. Some of its key components include ECC (Elliptic Curve Cryptography), Confidential Transactions, Dandelion, and CoinJoins, all of which work together to enable encryption, privacy, and anonymity.

    MimbleWimble is a protocol with a lot of potential, and even some of the best-known Bitcoin Core developers became interested in it. According to them, there is a possibility of MimbleWimble becoming a side-chain protocol of Bitcoin, which would significantly improve the largest coin's privacy features.

    MimbleWimble: A short history

    MimbleWimble was conceptualized in 2016 by Tom Jedusor. Jedusor created the protocol's whitepaper by relying on Greg Maxwell's work in regards to CoinJoin and confidential transactions. Another inspiration for the protocol was a paper from 2013, posted by an anonymous creator, which introduced one-way aggregate signatures.

    The protocol was recently used in a project called Beam, which was released on January 3rd, and it currently operates without problems. In fact, it is fully mineable, although it requires specific hardware and a certain level of technological knowledge.

    Another important project in regards to MimbleWimble's history is Grin, which launched its TestNet in November 2017. The project remains alive to this day, even with its entire repository maintained by anonymous developers. The project currently still lacks a clear business model, and its structure is less organized than that of Beam.

    However, both projects are using MimbleWimble as their networks' core, and they are both perfectly functional.

    MimbleWimble privacy

    MimbleWimble focuses on improving the privacy of its users, and it prevents transactions from being linked to IP addresses. Another one of its major use cases is enabling near-infinite scalability.

    Both Grin and Beam projects are using ASIC-resistant algorithms in order to bring decentralization. They also use a special new feature for sending a new transaction to a number of different nodes before showing it on the network, so that no one can trace it to the source. Finally, MimbleWimble blockchain is tied to the number of network's users, instead of transactions and addresses, which has a great impact when it comes to scaling the network.

    MimbleWimble transaction validation relies and depends on two things. The first one is the verification of zero sums, which means that the sum of outputs minus the sum of inputs must always be zero. This proves that the transaction is valid and that it did not create new funds, while the actual amount that is sent is never revealed, thus ensuring its privacy.

    The second one is the possession of private keys, which is necessary to prove the ownership of outgoing transactions, just like with most other cryptocurrencies. However, in this case, there is no need for a transaction sender to prove that they are in possession of the private key by signing the transaction directly.

    Thanks to this, MimbleWimble can improve traders privacy, solve the scaling problem, reduce the size of the blockchain, as well as cut down transaction costs. It is a very interesting protocol that might bring a lot of change to the crypto world, and it is more than possible that it will become a new norm in the future of crypto trading.

    Right now, it all depends on the performance of Beam and Grin projects. If they can prove that MimbleWimble works without signatures, amounts, or even the need to reveal addresses, it will mark a big game-changer in the crypto world.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Bitcoin Exchange Guide News Team
    B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


    Please enter your comment!
    Please enter your name here


    Live Bitcoin Price & Latest BTC Chart News

    Today's Latest Crypto News

    Argo's Bitcoin Mining Revenue Jumps 10x In 2019, Operations Ramping Up For 2020

    It has been reported that Argo Blockchain’s Bitcoin (BTC) mining form took 10 times more revenue in 2019 than it did in 2018. The announcement...

    After Passing Strict Regulatory Standards, Zipmex Crypto Exchange Granted License by Thai SEC

    The Asia-Pacific crypto-fiat exchange Zipmex has been given a digital assets exchange license by the Thai Securities and Exchange Commission (SEC). As stated in a...

    South Korea Might Re-Categorize Cryptocurrencies, Imposing A 20% Tax On Gains

    South Korea one of the most progressive nation in terms of evolving technology adoption might impose a 20% tax on crypto gains in the...

    Does Peter Schiff Losing His Bitcoin Reveal the Shortcomings of The Technology?

    As gold proponent Peter Schiff loses his BTC because he didn’t remember to keep his seed phrase, CT tore into him for forgetting his...

    Popular Trader Sees Bitcoin Heading to $5,000 After the Bearish Ambush

    Bitcoin went down hard from $9,200 to $8,550, altcoins followed except for BSV & XTZ If BTC reclaims $8,900-$9,000, $9.5 next or low...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.