Beam
In this growing cryptocurrencies era, Beam is one of the cryptocurrencies getting closer to being ready for launch by Mimblewimble, the blockchain project is named after spell from the Harry Potter book series. Beam network is the improvisation version of Bitcoin network.
Mimblewimble is a protocol simply focused on privacy of the user transactions, scalability and fungibility.
HOW MIMBLEWIMBLE CONDUCTS THE TRANSACTIONS?
Let us first understand how Mimblewimble transactions are conducted. Mimblewimble uses confidential transactions by using cryptography commitment scheme called pederson commitment which uses hiding and blinding factors. In confidentiality transactions, only the sender and receiver are involved while transferring the ownership of unspent transaction output(beam). The sender needs to provide the hiding value and the blinding factor to the receiver, then only the receiver can look into the transactions. Before receiving the hiding and blinding factors, receiver would not be able to see the transactions. Then receiver creates another new output commitment using a different blinding factor which is known only to him, which therefore acts as a proof of ownership for permitting to spend the cryptocurrency. This allows sender to choose the receiver they want to send the transactions. Onlookers won't be able to view the transactions. However, others can view the output and input to figure out the valid transactions. Transactions are valid by ensuring the number of input is equal to the number of output, both need to be same. This confidential transactions do not need to store the users address, it only stores the list of the inputs, list of the outputs and signature data which occupies less space in a block, making it more compactable, hence leads to more scalability.
CONJOIN CRYPTOGRAPHY
Mimblewimble transactions also use conjoin cryptography. This means Mimblewimble has more fungibility. Beam can be easily interchangeable with any other unit. Simply because, no one can trace if the transactions are tainted or untainted as conjoin combines multiple payments from multiple senders into a single transaction so that outsider parties won't be able to determine which sender paid and which recipient received. No one can trace the history of the sender, thus no one can know the transactions have been gained illicitly, if known the transactions are illicit recipient may not accept to interchange the value. This is useful for those who like to do confidential transactions, those who have to do transactions in bigger values, and hacker may not be able to trace as well.
EQUIHASH PROOF OF WORK
Mimblewimble uses equihash proof of work algorithm for mining blockchain.This means nodes need to solve mathematical problems in order to create a block. The limitations for mining blockchain for Mimblewimble is 253 million beams. Since the block is smaller in size and multiple output input transactions are only stored in a single block in a compact way, so there won't be any issues regarding scalability.
CONCLUSION
Before the introduction of saving datas in computers, humans need to save datas in their minds or in papers. Computers have simplified the way we store our datas. People are more interested in advanced life of technologies. Cryptocurrencies have totally changed the way we think and handle the monetary value. We feel more safer and it's easy to use digitized form of money. People who need more confidentiality when it comes to money transactions have no better choice than what Mimblewimble is offering, confidential transactions, it's scalable, fungibility. It is going to be one of the most promising blockchains.
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