What is Mimblewimble Protocol? Learn about Mimblewimble . anonymous protocol

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2021-07-02 03:44:47

What is Mimblewimble?

Mimblewimble is a blockchain protocol that redesigns the data structure of the communication method to allow Blockchains using Proof of Work (typically Bitcoin) to be more concise, secure and private.

Mimblewimble is a spell in the famous Harry Potter series with the meaning of locking the opponent’s tongue.

Mimblewimble was developed by anonymous users named Tom Elvis Jedusor French name “Voldemort”, document announced in early 2016. According to Jedusor, Mimblewimble is designed for improved privacy and higher scalability than Bitcoin. Although the core idea has been published, it remains an open question until research by Andrew Poelstra of the BlockStream team perfected its concept with the title Mimblewimble (published in October 2016).

Mimblewimble was once a buzzword in the crypto world. Crypto winter 2018, a number of blockchain innovations made waves such as the release of Mimblewimble and its first crypto app Grin, whose value quickly exploded after its launch at the end of the year. 2018.

Many studies developed Mimblewimble but did not reach consensus. Some argue that merging Mimblewimble with the Bitcoin protocol is too difficult. However, most agree that Mimblewimble can still upgrade Bitcoin’s system as a sidechain. Currently, there are already many popular implementations of Mimblewimble floating around the space like the Grin and Beam Blockchain. In October 2020, Litecoin launched the Mimblewimble test network to improve its privacy and scalability.

How does Mimblewimble work?

Mimblewimble’s transaction structure is derived from “secret transactions“, first discussed by Blockstream’s Dr. Adam Back, who happens to be also the frontrunner of Satoshi Nakamoto. This method is also used in other privacy coins like Monero.

In a nutshell, it all starts with a private transaction where a certain number of tokens that the sender wants to process is encrypted in a way that “anonymous elements“. Bitcoin’s UTXO model is replaced by a multisignature for all inputs and outputs known as Confidential Transactions. The transaction Alice sends to Bob is encrypted with the anonymization factor, and the network nodes deduct the input and output tokens to logically confirm that there is no duplicate factor. Then the transaction is completed.

In Mimblewimble, anonymous elements must be selected by the sender. In this way, it acts like a proof of ownership for the recipient, allowing them to use the money.

Confidential transactions were invented by Dr. Adam Back and used in a number of crypto projects, including Monero and Tari – in the way of Mimblewimble.

Example: Transaction Alice sends Bob 200 BTC

If we write this as a mathematical equation, where the output is positive and the input is negative, we should be able to balance things out so that no other coin generation arises.

-300 + 200 + 90 + 10 = 0

Basically, this is information that resides in the Bitcoin blockchain. Anyone can check anyone else’s transactions simply by checking the global ledger’s transaction history. This is not good for privacy.

This is where secret transactions come in. We can start by multiplying both sides of the previous equation by some point generating H on the elliptic curve ( This is the first step of the Elliptic curve encryption algorithm used by Mimblewimble)

300.H=200.H+90.H+10.H

Since H is constant, the above operation remains the same, so we can confirm that Alice is not stealing by checking

(3.H)−(2.H)−(1.H)−(fH)≡0.H=0

Notice that we only see the public keys and hence the hidden values. This means that now only the H parameters are seen, but no values ​​are seen. Of course the structural protocol will be much more complex than described above. The content just summarizes the anonymous transaction stub with parameter H being the initial stub anonymous element.

Deploy Coinjoin

CoinJoin is a controversial cryptosystem (to some other developers) developed by Blockstream’s Gregory Maxwell. It allows for a “coin maker” system where payments from many people send differently combined in a single transaction, with the aim of making it nearly impossible to trace the transactions from the point of view of any outsider. This means that multiple (Transactions) Transactions are now included in a single Transaction.

By comparison, Bitcoin’s nodes, for example, must download the entire blockchain, including its transaction history, which is then analyzed by the network to confirm its validity.

Cut-Through

Another feature of the Mimblewimble protocol is Cut-Throught. It’s work combination of inputs (inputs) and outputs (outputs) in all recorded transactions to give smaller blocks. In this process, previous records are used as input to facilitate new transactions. It is easy to understand that the transaction from A to C, instead of recording the process from A to B and from B to C,.

To better explain this, here is an example of a transaction with different inputs and outputs.

  • A sends 1 BTC to B (This shows a single input to trade with B, it results in a single output)
  • B sends 1 BTC to C (This has a single input to transact with C, it results in a single output)

Here, Mimblewimble merges these transactions into a single input and output. Through transaction kernels, asset ownership is confirmed and validated. This kernel holds the public key, mining fee, and signature.

However, nodes do not always have to implement Mimblewimble’s Cut-Through feature. However, this means that it will take up more space than normal transactions stored in the ledger.

Compare Mimblewimble to Bitcoin

In the design principle of the Bitcoin Blockchain every transaction must be public, so anyone can track the entire history by downloading all the data from the Genesis block.

Blockchains are built on the Mimblewimble protocol with the design of the security principles mentioned in the above two sections. Then Mimblewimble has no address. The concept of a Mimblewimble address does not exist. Hence the transaction is completely private. All transactions are confidential. It is simpler to store and download data. As long as the entire system of network nodes ensures the logic in the system so that there is no abnormality in money circulation such as repeated spending.

In particular, the Mimblewimble structure does not allow tracking of anyone’s address and ensures privacy by eliminating Bitcoin’s scripting system, so the data on the Mimblewimble structure is smaller and simpler to store. At the same time the Mimblewimble system deletes unnecessary transaction data in the transaction resulting in Mimblewimble requiring less computational resources.

Features of Mimblewimble

Mimblewimble has three key differences when compared to other blockchain platforms available.

Incognito

In Bitcoin, there is always a public address that can be traced to identify the sender and receiver of any given transaction, especially if their address is linked to the real-world identity of the transaction. surname. Therefore, Bitcoin is a pseudonym.

With Mimblewimble, no transaction history can be tracked. And with no address accessible by any third parties, it becomes extremely difficult to bypass the anonymity of anyone making a transaction through the protocol.

Exchangeability

Like other privacy coins, Mimblewimble has a higher fungibility than Bitcoin. This is because one can exchange any cryptocurrency on its platform without risk of loss. Other coins can be “tainted”, especially when they are linked to illegal activities. While tainted assets are accepted by some, they can begin to decline in value under some circumstances. As such, Mimblewimble’s hard-to-follow makes it easier to replace.

Ability of extension

Since the block size in Mimblewimble is much smaller than in Bitcoin, the block size was previously more scalable than most blockchains. This is exactly the same issue that has previously divided the Bitcoin community in an attempt to solve the scaling problem, creating the infamous Bitcoin Cash (BCH) hard fork that modifies the block size limit.

However, Mimblewimble’s workaround through CoinJoin and methods Cut-Through got there without the drawback of a large block size limit.

Defect

Of course, with anything revolutionary, there are bound to be some limitations. Here are the two biggest ones:

  • Longer transaction throughput

Systems that support secret transaction implementation have lower transaction speeds due to their data size.

  • Reliability of electronic signatures

Since Mimblewimble relies on digital signatures, it is very vulnerable to attacks via quantum computers.

The Future of Mimblewimble

Mimblewimble is a huge step forward in protecting anonymity and privacy, which most other cryptocurrencies are supposed to be created for. Since it is trace-free and the validation process is difficult, it is much easier for anyone to adopt the Mimblewimble protocol model than with some other current blockchain systems.

This is one of the reasons why Grin and Beam use Mimblewimble protocol for implementation. Both cryptocurrencies have no address, transaction amount and a record of all transaction history.

In many cases, these are also concerns that people think of whenever deciding to consider the use of cryptocurrencies. Mimblewimble’s effort to meet those needs can help ensure more adoption. All information in the article is information compiled by CHK and does not constitute investment advice. CHK is not responsible for any direct and indirect risks. Good luck!

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