Cryptocurrency was originated by Satoshi Nakamoto . He invented the digital currency that is not controlled by any Nation after a crash in the Bank. A cryptocurrency is a medium of exchange like normal currencies such as NAIRA, USD, etc It is designed for the purpose of exchanging digital information through a process made possible by certain principles of cryptography. Cryptography is used to secure the transactions and to control the creation of new coins. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.
Today every one, banks, companies are aware of the importance of cryptocurrency. Research are going on cryptocurrencies and projects are being written on blockchain because of its impact. Bitcoin was the first and still most important cryptocurrency . Satoshi saw that the centralized system failed , he found a way to build a decentralized digital cash system. This is the single and most important part of Satoshi‘s invention.
Bitcoin is the first widely used financial system for which all the necessary data to validate the system status can be cryptographically verified by anyone. However, it accomplishes this feat by storing all transactions in a public database called "the blockchain" and someone who genuinely wishes to check this state must download the whole thing and basically replay each transaction, check each one as they go. Meanwhile, most of these transactions have not affected the actual final state (they create outputs that are destroyed a transaction later).
It would be better if an auditor needed only to check data on the outputs themselves, but this is impossible because they are valid if and only if the output is at the end of a chain of previous outputs, each signs the next. In other words, the whole blockchain must be validated to confirm the final state.
Add to this that these transactions are cryptographically atomic, it is clear what outputs go into every transaction and what emerges. The "transaction graph" resulting reveals a lot of information and is subjected to analysis by many companies whose business model is to
monitor and control the lower classes. This makes it very non-private and even dangerous for people to use. The solution is beam( Based on mimblewimble)
Beam is the scalable, confidential cryptocurrency.
Beam is an anonymous store of value coin. It is built with scalability and feature in mind. It is private by default and based on mimblewimble. In private by default the user has absolute control over transaction data available, allowing the option of transparency as well as privacy. While based on minblewimble, beam has smaller blocks than any other blockchain giving it maximum scalability. It’s a faster and more efficient network. Beam uses mimblewimble protocol (famously named after the tongue- tying spell from harry potter) to antornate its algorithing.
Impotence of beam
a. it gives users control over which transaction information is shared
a. It gives users control over which transaction is shared, and to who it is shared with.
b. It Makes a leaner blockchain with fewer transaction details per transaction: enabling faster confirmations and therefore very efficient scaling
c. It helps typing multiple transactions into a single transaction
d. It conceals contraction values for the sake of privacy
e. It conceals addresses of both the sender and receiver
f. It enables multiple transaction types in a private manner: escrow, time locked, atomic swaps, etc.
Issues
Computing, date storage, medicine and automotive market make up a small sample of areas to which blockchains are being tested. Bitcoin has started an entire revolution, but it is yet to be perfected when it comes to one of its come use case, i.e the private transferring of assets in a peer to peer fashion.
Blockchain such as Bitcoin make it possible for people to track data and narrow down the source and end point of transactions. This makes it possible to eventually track back to the party involved in the transaction by analyzing the blockchain which is publicly available for all to see.
Therefore, even though a cryptocurrency may appeal to be anonymous, careful analysis of how the money has travelled could reveal the user. This is a major concern for users who priorities their security.
This has actually cased hacking of some profitable sites. BEAM 2018
What Minblewimble is all about
Bitcoin is the first widely used financial system for which all the necessary data to validate the system status can be cryptographically verified by anyone.
However, it accomplishes this feat by storing all transactions in a public
database called "the blockchain" and someone who genuinely wishes to check this state must download the whole thing and basically replay each transaction, check each one as they go. Meanwhile, most of these transactions have not affected the actual final state (they create outputs that are destroyed a transaction later).
