By Nathan Ferguson
It is possible to use the spell Mimblewimble to literally tie the target’s tongue in order to prevent them from disclosing knowledge about a specific subject. It is famous among those who are fans of the Harry Potter series.
The launch of Mimblewimble as well as the first cryptocurrency application, Grin, in the midst of 2018’s crypto winter produced many ripples in the crypto realm. The value of Grin quickly surged following its introduction in late 2018.
Mimblewimble, which cleverly took its name from the famed tongue-tying curse featured in the Harry Potter books, opened up a whole new realm of opportunities in both crypto secrecy and scalability. Since then, though, the industry has been baffled by the situation.
There is no agreement among developers and researchers as to the most effective approach to use the protocol at the present time. Mimblewimble has been criticized for being too complex to integrate with the Bitcoin protocol, according to some. However, the majority of people believe that Mimblewimble, when used as a sidechain, might still improve the Bitcoin system.
There are already a number of popular applications of Mimblewimble circulating in the market, such as Grin and Beam, which are now available. Litecoin deployed a Mimblewimble testnet in October 2020 in order to improve its security and scaling capabilities.
What Is Mimblewimble?
Despite the fact that the concept has been around for decades, the term and its implementation to cryptocurrencies are relatively new.
Mimblewimble is a security-oriented decentralized protocol that makes use of a novel approach to storing and maintaining transactions on the blockchain in order to maintain privacy. Developed and released by an unknown developer going by the moniker Tom Elvis Jedusor in mid-2016, it served as a French analogue to the character “Voldemort.”
How Does It Work?
With its name taken from the well-known tongue-tying spell featured in the Harry Potter series, which ties the victim’s tongue in order to prevent them from exposing particular data, Mimblewimble protocol operates in the same way as a spell.
It creates a blockchain framework that has the potential to open up a whole new world of possibilities in terms of fungibility, privacy, scalability, and cryptographic anonymity, even as the protocol allows bitcoin information to remain entirely anonymous across the blockchain.
The total anonymity of Mimblewimble transactions contrasts with the pseudonymity of BTC and other cryptocurrencies. Three secrets are often revealed: the sender’s address, the amount of cryptocurrency delivered, and the receiver’s address. Mimblewimble does not divulge any of the secrets or pieces of information it has acquired.
“Confidential transactions,” which were initially mentioned by Blockstream’s Dr Adam Back, who happens to be a frontrunner for Satoshi Nakamoto, served as the inspiration for Mimblewimble’s transaction structure. Other privacy coins, such as Monero, take advantage of this technique as well.
To be more specific, it all starts with a separate transaction in which the quantity of a given token that a sender wishes to process is encoded using “blinding factors” before being sent. Blinding factors are random values selected by a sender from which a receiver must choose one from a pool of options. If the recipient selects a value that is similar to the sender’s, the transaction is considered legitimate.
A sender must select the blinding factors that will be used in Mimblewimble. In this sense, it serves as a form of evidence of possession for the recipient, granting them permission to utilize the currency.
The Cryptographic Approach Of Mimblewinble
Elliptic Curve Cryptography is the moniker given to Mimblewimble’s encryption technique (ECC). Mimblewimble is able to fulfill the two key requirements of confirming the proper amount of transaction and all the parties involved without disclosing any information to the public through the use of ECC.
Given that the ECC is relied on discrete logarithms, figuring out equations on the blockchain becomes far more complex. To put it simply, logarithms are the polar opposite of multiplications, which are far easier to do when compared to factorization.
In mathematics, the concept discrete means a subject branch that circles around discrete numerical values and includes topics such as probabilities and set theory. As a result, putting ECC Mimblewimble into action increases overall security.
To further enhance security and anonymity, Mimblewimble employs a combination of cryptographic protocols like CTs (Confidential Transactions), Cut- Through and CoinJoin, Dandelion, as a whole, these protocols aid in the concealment of transaction information.
Confidential Transactions
A transaction on Mimblewimble is concealed through the Confidential Transactions (CT) protocol, which is also utilized by other privacy coins like Monero and hides the value of a transaction.
CoinJoin Implementation
CoinJoin is a cryptographic technique designed by Blockstream’s Gregory Maxwell that has sparked controversy (at least among some). A “coin maker” method is enabled, in which payments from several senders are combined into a single transaction with the goal of making it practically difficult to track the chain of transactions from an outsider’s point of view is achieved.
This is done in Mimblewimble through a block that comprises several inputs and outputs that are mentioned, as well as signature information. CoinJoin also contributes to creating a more compact blockchain since it eliminates the need for storing all the transaction records other than inputs and outputs.
The Bitcoin network’s nodes, on the other hand, are required to download and verify the entirety of the blockchain, such as its previous transactions, which is then examined by the system to determine its legitimacy.
Cut-Through
The cut-through function of the Mimblewimble standard is another advantage. It operates by combining the inputs and the outputs from all of the transactions that have been recorded to produce smaller blocks. Earlier records are used as inputs to aid the creation of new transactions during this procedure.
A transaction with several inputs and outputs is provided as an illustration to help illustrate what is being discussed here.
- A transfers one bitcoin to B. (A single input transaction with B yields a single output)
- B sends one bitcoin to C. (This has a single input and a single output when transacting with C.)
Mimblewimble consolidates these activities into one input and the output for each transaction. The confirmation and validation of asset ownership are accomplished through the use of transaction kernels. The key, mining fee, and signature are all stored in this kernel.
The cut-through function of Mimblewimble, on the other hand, is not always required to be implemented by the node. This will, however, result in a significant increase in storage capacity because the transaction will be recorded in the ledger.
What Are The Primary Characteristics Of Mimblewimble?
When discussing the protocols of Mimblewimble, it is always stated that it possesses three distinguishing qualities that distinguish it from other blockchain technologies.
1. Anonymity
The transmitter and recipient of any given transaction in Bitcoin will always have a public address that can be traced back to their real-world identities. This is especially true if their identities are connected to their real-world identities. As a result, Bitcoin is said to as pseudonymous.
Because there are zero transaction records with Mimblewimble, it is impossible to follow individual transactions. And in the absence of addresses that are available to any third party, it becomes incredibly impossible to circumvent the confidentiality of anyone who conducts a transaction using the blockchain protocol.
2. Scalability
Because Mimblewimble’s block sizes are significantly smaller than those in Bitcoin, that’s far more scalable than the majority of blockchain systems. Exactly this was the dilemma that previously divided the Bitcoin system in an attempt to fix the challenges pertaining, which resulted in the controversial Bitcoin Cash hard fork, which attempted to change the block size limit in an effort to settle the scaling problem.
3. Fungibility
The privacy coin Mimblewimble, like other privacy currencies, has increased fungibility compared to Bitcoin. It is due to the fact that it allows users to transfer any crypto on its platform even without the fear of losing money. It is possible for other coins to become “tainted,” mainly if they are involved with unlawful activity.
While some people embrace polluted assets, in some situations, their value may begin to decline as a result of their contamination. Mimblewimble’s difficulty in tracing makes it more fungible, which is consistent too.
Who Uses Mimblewimble?
A number of cryptocurrency projects are using Mimblewimble due to its high levels of security, anonymity, and scalability. Consequently, Mimblewimble’s native coin, MimbleWimble Coin (MWC), or “the technologically superior ghost money,” in the words of the Mimblewimble developers, makes use of the protocol to transact business.
The team behind the privacy-preserving digital currency Grin was the first to theorize the application of Mimblewimble in 2016, and they were not alone (GRIN). The developers of Grin’s lightweight open source project had prepared the basis for the project to be built on Mimblewimble, but it was only in January 2019 that the project was officially launched depending on Mimblewimble implementation.
Beam (BEAM) is a scalable, fungible, and confidential cryptocurrency that is built on the Mimblewimble implementation. It operates on the same fundamental principles as Grin, including full control over users’ privacy, and it runs on the Mimblewimble implementation.
On the other hand, Beam offers a secret DeFi (decentralized finance) ecosystem of decentralized apps (DApps) that can be used for a wide range of use cases, as demonstrated above.
Some prominent coins are also on the verge of implementing Mimblewimble in order to provide their blockchains with greater privacy and fungibility. As a result, the group behind Litecoin, a decentralized crypto network that employs protocols similar to Bitcoin, intends to enable Mimblewimble on the LTC mainnet by the end of 2021 provided enough miners and node managers express interest.
Finally, prominent privacy cryptocurrencies such as Zcash (ZEC) Monero (XMR) may be able to provide benefits to Mimblewimble in the future. Although none have elected to join the protocol so yet, this may be due to the fact that it is too sophisticated and demanding a task.
Disadvantages Of Mimblewimble
Of course, there are sure to be some negatives to anything that is this revolutionary in nature. The following are the two most significant:
Increased transaction throughput time
Because of the large amount of data stored in systems that offer confidential transaction implementations reduces their transaction performance.
Total reliant on electronic signatures
Because Mimblewimble is increasingly dependent on digital signatures, it’s indeed vulnerable to assaults that are carried out using quantum computing devices.
What Are The Best Places To Buy And Sell Mimblewimble Coins?
MimbleWimble Coin is now traded on a number of cryptocurrency exchanges, including Bitforex, TradeOgre, Hotbit, Whitebit, and a few others.
The most important ones are Hotbit and Bitforex, which account for the majority of the total bitcoin trading volume in the world. On cryptocurrency prices tracking services such as CoinMarketCap and CoinGecko, you can find more in-depth information about the MWC trading market.
What Is The Best Way To Mine A Mimblewimble Coin?
Mimblewimble is built on the proof-of-work idea, which gained widespread acceptance after the Blockchain network launch in 2008, and is designed to be scalable.
PoW is a decentralized consensus mechanism that requires network members to spend more effort solving an arbitrary mathematical puzzle to prevent frivolous or malicious use of computing power.
The effort required is not insignificant, but it is feasible for members of the network to deplete step solving an arbitrary mathematical puzzle. Because of Proof of Work (PoW), cryptographic transactions can be completed P2P (peer-to-peer) securely without the requirement for a third party to be trusted.
Mimblewimble is regarded as a unique implementation of a Proof-of-Work blockchain that means higher privacy as well as improved network scalability and performance. Cryptocurrency mining, also known as crypto mining, is associated with PoW decentralized consensus.
Crypto mining is a system for confirming activities in the blockchain as well as creating (or mining) new tokens by solving challenging mathematical problems. In the case of the blockchain of Mimblewimble, it is the method of mining Mimblewimble coin (MWC), the blockchain’s native cryptocurrency that is being discussed.
Every time a cryptocurrency transaction is approved and finished, a crypto miner ensures the data’s legitimacy by updating the blockchain ledger with the transaction’s cryptocurrency ID.
Participating in a block holding information about transactions, as well as solving complicated mathematical puzzles using cryptographic hash functions, is required for the mining method itself. The first miner to solve it is rewarded for completing the transaction by receiving small sums of cryptocurrency as compensation.
In addition, a crypto miner needs a machine with specialized advanced hardware to compete with other miners in order to be successful. In most cases, bitcoin may be mined using a central processing unit (CPU), a graphics processing unit (GPU), and an application-specific integrated circuit (ASIC), with a variety of methods available for each.
There are two algorithms that can be used for Mimblewimble coin mining: Cuckarood29 and cuckAToo31. The block period is 60 seconds, and the block reward is 0.6 million tokens worth of cryptocurrency.
There are a variety of mining pools to choose from. Around ten thousand people are actively using the largest and most popular of them. It comes in a multitude of languages and is designed to be user-friendly. Generally, if you are enthusiastic about mining MWC, you must first follow a few simple actions.
First and foremost, you must download mining software, specifically the GPU Miner, in its appropriate version. Second, once you have your mining equipment ready, you must download the MimbleWimble Coin desktop wallet to your computer. It is compatible with Mac OS X, Linux, and Microsoft Windows.
It should be noted that to get rewards from the pool. Your local wallet (MWC) must be connected to the internet at all times. You should utilize an address on the exchange where MWC is already listed if you do not want to go through the trouble of creating one.
The Future Of Mimblewimble
Mimblewimble represents a significant advancement in safeguarding anonymity and confidentiality, two features that many other cryptos were arguably designed to provide. It is because the Mimblewimble protocol architecture does not suffer from traceability issues and does not require a time-consuming validation process, making it far more accessible to the general public than numerous other blockchain systems now in use.
These are only a few of the reasons why Grin and Beam chose the protocol of Mimblewimble for their respective implementations of the protocol. Both cryptocurrencies do not have addresses, transaction amounts, or records of all transactions in their histories, as do traditional currencies.
When people decide to investigate the use of cryptocurrencies, many of these are the worries they have in mind at the time of their decision. Mimblewimble’s efforts to meet such requirements may contribute to increased adoption.
Summing Up
Mimblewimble is a considerable improvement over the existing privacy safeguards in blockchain technology. The protocol is the best creation for any cryptographic user who wants to keep their personal information entirely hidden.
As blockchain developers strive to increase the security and privacy of digital currencies, we can anticipate Mimblewimble to be adopted by a more significant number of cryptocurrencies shortly, as well.