Mimblewimble is a protocol proposed by an anonymous user named Tom Elvis Jedusor. The community very quickly picked up the idea. Developers, who are still unknown by name and surname in order to protect their identity, approached us to work on the crypto-crypted version. On the forums they are only recognized by their nicknames. The work on the protocol took quite a long time, as there was no clear consensus. Ultimately, however, at the beginning of 2019, the first two cryptocurrencies were created: Beam and Grin. The protocol itself can also be used in other cryptocurrencies, but also as a separate sidechain.
What about anonymousness?
The first trick is Confidential Transaction, i.e. Confidential Transactions. They will also stay in the Blockstream side chain for Bitcoin. Confidential transactions allow users to hide all amounts involved in a transaction, so that only the sender and the recipient know how many coins are being transferred. By using a cryptographic trick, any other network user can confirm the very correctness of a transaction without knowing it. This allows you to verify whether the amount sent and also the amount received is equal. The whole is based on a short mathematical equation defined in the White Book.
The second trick is CoinJoin. It was originally proposed by Gregory Maxwell, co-founder of Bitcoin Core. CoinJoin combines several smaller transactions into one large transaction, in which buyers send money to all recipients. If this is done correctly, it makes it impossible to unequivocally confirm which input address the funds came from to a specific final address.
The third technology is Merkle Tree. It is a technology which, just like CT and CoinJoin, is going to be implemented into Bitcoin by means of sidechains. What is more, this technology encrypts transactions at the node level in the network and then connects the transactions to each other. Thanks to this trick we save a lot of valuable space on blockchain and encrypt all kinds of information that is related to the address of the recipient and the sender.
Reduction of the blockchain’s “size” itself
MimbleWimble construction allows you to cancel old data from a specific transaction. This allows us to have a form of radical trimming. Most of the old trading data can be forgotten (except for so-called karnel transactions, they must remain in blocks). New nodes do not need to be completely synchronized with the entire block chain, and the amount of data that nodes need to store should grow much slower than with typical block chains. Ownership of the funds, on the other hand, provides the kernel of the transaction, which remains in the block forever and is non-erasable.
The gap is very difficult to fill. In fact, it requires significant centralization of a given network. Although transactions are already anonymous on blockchain, but there is a “hole”. Specifically, the moment when transactions are sent to the feet in order to connect them with each other. Then transactions have only encrypted information about the amount of the transfer. However, the address is visible. From times when only such a transaction reaches the next one’s node it is encrypted and also connected with the next one’s transaction.
Wallets must be online
Quite loudly on the Internet is about the inconvenience certain in MimbleWimble itself, which concerns the execution of transactions. In order to execute transactions from one person to another, it is necessary that both persons have their wallet switched on and also connected to each other at the time of the transaction itself. This is a record that comes directly from the MW Whitepaper. However, the cryptocurrency Beam has already solved this problem by using a technology such as SBBS (System Secure Bulletin Board). It solves the problem and thus enables one-sided offline transactions. Thanks to this, the Beam user feels basically the same as in the case of other cryptocurrencies such as Litecoin or Bitcoin and the like.
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