It is kind of like cold hard cash in a leather wallet
There is almost the same kind of mystery surrounding the MimbleWimble protocol as with Bitcoin. A protocol named after a magical spell from a fantasy book / film series. It is a spell to prevent others from casting a spell. Because all the words spoken will come out as complete and utter gibberish. No way one can make any sense from any sentence after that. Basically that is what the next level Blockchain protocol named 'MimbleWimble' provides. Every block added to its blockchain will just seem to be one long huge transaction. In no way it is possible to get addresses and in- or output amounts from it. That is the 'MimbleWimble' spell part, all the data seems to be messed up. That makes it pretty anonymous to use. Quite a nice privacy gain there.
Already there are two projects using the MimbleWimble protocol. They are called Beam and Grin. Each using an extremely tough memory hungry Proof Of Work {POW} mining protocol. Which will be taken over soon by ASIC mining hardware. Although these projects already are live and on the market, the big jump forward will come through adoption by cryptos like Litecoin {LTC}. It will not replace the current blockchain but will be an addition, a sidechain so you will. Where a MimbleWimble added sidechain will act in a way like the Lightning Network. In the case of LTC, some Litecoin will be locked on the mainchain and become available on the MimbleWimble Network {MWN} part. From there it then can be used like cold-hard-cash in a leather wallet, but then in a digital way. And in a faster way than would be possible on the main Blockchain of Cryptos like Bitcoin, DigiByte, Dogecoin, Vertcoin and Litecoin.
And then there is another huge advantage that comes with the MimbleWimble protocol. It only saves the output data, no complex input-output structures that fill up blocks quickly. Simplified in a huge way one could see it as a current state saving blockchain. As long as all the values add up the state of the overall blockchain is okay. If an input minus an output adds up to zero then there was no new Crypto value created. There is a certain amount of Cryptos moving around which ought to be stable. New ones will be created through mining and also add up in total to proof that the all the inputs and outputs were in balance. The advantage of this protocol is that all the surplus data can be dumped right away. Only the addresses that have available outputs will be able to unlock them with their private keys. In a sense this is like having cold-hard-cash in a leather wallet. Maybe MimbleWimble makes the digital equivalent of that even more secure.
This means that, in effect, the blockchain will only grow through more people using it. As more output channels will be generated the size of a MimbleWimble blockchain will grow. Yet at a certain moment it will reach a slow growth. As most of the data is getting purged and the value is just moving from output to output, the total blockchain size growth will be small. This is where MimbleWimble becomes a very useful Cryptocash system. A downside being that a payment channel needs to be open until the transaction has been taken place. This might change in the near future though. But this is a kind of paying for goods on the local market, where one opens up a leather wallet, pays with cold hard cash, get the goods and its settled. Only the seller and buyer know what was bought and how much was payed.
Maybe the banking monetary governance system wants to make the use of cold-hard-cash illegal, it does look like it. This means they will have full control over 'its' digital money supply and its flow. With fractional reserve banking, even going as low as ZERO (let that sink in for a bit) percent it is just a kind of legalized counterfitting. This is causing enormous devaluation and has an economic crisis guarantee build in. Also having a monopoly on 'its' money 'it' can charge and demand just about anything to its customers. Pay for a banking account? Well, who would ever thought banks could charge us for anything, as they already earn a lot charging interest. Not even talking about creating 'its' money out off nothing against interest bearing debt... (Who finances war and destruction you ask!?)
The first revolution was Bitcoin and all the other innovations that followed were the Crypovolution. And with MimbleWimble we are entering a next level, another revolution, where Cryptos can take over the cold-hard-cash system. And it can be as fast as Lightning. It can work as a substantive system, like Beam and Grin proof. And it can be added to any existing blockchain like Bitcoin, Vertcoin, Dogecoin, Digibyte and Litecoin. Where LTC will probably be one of the first to have it implemented. Maybe even for the upcoming halfening, which might give the value of Litecoin quite a boost, I guess. But also Steem could be using MimbleWimble, Bitshares and EOS too, as it would be implemented as a sidechain. The speed advantage there would be even bigger.
Exciting times for the Cryptos realm, as after a slight dip (my guess is a leverage trading effect) the bulls have started to run again. With the MimbleWimble protocol a new blast forward has begun and my guess is that we aint seen nothing yet!
MimbleWimble, another Ace up the Blockchain sleeve
Image CC0 licensed, courtesy of Pexel
