What is Mimblewimble?
Mimblewimble is a privacy-oriented decentralized protocol that uses a new method for structuring and storing transactions on the blockchain. It was designed and introduced by an anonymous developer named Tom Elvis Jedusor, the French equivalent of “Voldemort” in mid-2016.
How does Mimblewimble work?
The Mimblewimble Protocol takes its name from the famous Harry Potter spell that ties the victim’s tongue to prevent certain information from being divulged and works like a literal spell. It provides a framework for a blockchain that opens up a new potential area of crypto scalability, interchangeability, privacy, and anonymity as the protocol enables crypto information to be hidden.
The complete anonymity of the transactions mimics the pseudonym of Bitcoin (BTC) and other crypto currencies, whereby three secrets are usually disclosed: the sender address, the amount of the crypto currency, sender and recipient address. Mimblewimble does not reveal any of the three secrets or information above.
Mimblewimble’s approach to cryptography
Mimblewimble’s cryptographic approach is called Elliptic Curve Cryptography (ECC). ECC enables Mimblewimble to meet two main requirements, namely verifying the exact transaction amount and the parties involved, without making any information public.
ECC is based on discrete logarithms, which makes computing equations on the blockchain much more complicated. In essence, the logarithm is the opposite of multiplication, which is much simpler than the factorial. The term discrete refers to a branch of mathematics that revolves around a set of discrete mathematical values and covers topics such as probability and set theory. Therefore, the implementation of ECC Mimblewimble increases security.
In addition, Mimblewimble combines cryptographic protocols such as Confidential Transactions (CT), CoinJoin, Dandelion and Slice-Via to achieve a higher level of security and anonymity. In general, these logs help hide transaction information.
The Confidential Transaction Protocol, which is also used in other security coins such as Monero, hides the value of a transaction on Mimblewimble. It is almost impossible for the CoinJoin protocol to track transactions. This allows the public address of transactions to be hidden by combining payments from different senders in a single transaction.
By implementing the Dandelion protocol, the identities of both the sender and the recipient can be hidden and remain private. The Slash-As a result of the protocol creates small blocks of transactions by aggregating multiple transactions into a single set for scalability. Thanks to Minimize-By, information can be easily deleted from the blockchain without any security risk.
What are the main features of Mimblewimble?
Whenever one talks about the Mimblewimble Protocol, it is always said that it consists of three different characteristics that make it unique from other blockchains.
First of all, it’s anonymous. In contrast to most other blockchain systems, which are mostly pseudonymous because they have traceable public addresses that identify the sender and recipient of a particular transaction, the transaction history cannot be tracked on Mimblewimble. The protocol design makes it extremely difficult to break user anonymity.
The second feature is interchangeability. Mimblewimble’s hard-to-track assets make it more fungible than other blockchains, as users can exchange any cryptocurrency on the platform without the risk of loss or the possibility of cryptocurrencies. Deaths are “poisoned” by illegal activities of lesser value.
The third feature is scalability. According to the basic concept of the blockchain, each node adds transaction-related information to the ledger in order to increase the block size. The large block size causes scalability problems related to the limited ability of the blockchain network to process large amounts of transactional data in a short period of time. By implementing CoinJoin and Slash-By to eliminate unnecessary transaction information and reduce block size, Mimblewimble achieves excellent scalability due to its compact blockchain size.
Who Uses Mimblewimble?
There are several crypto projects that Mimblewimble implement due to its high level of security, privacy and scalability.
Therefore, Mimblewimble’s native cryptocurrency, the MimbleWimble Coin (MWC), or “Superior Tech Coin” as the Mimblewimble developers describe it, uses this protocol.
The first to suspect the use of Mimblewimble in 2016 was the team behind a privacy-protecting digital currency called Grin (GRIN). The developers of Grin’s lightweight open source project laid the foundation for a project created on Mimblewimble, which, however, only started in January 2019 in addition to the Mimblewimble implementation.
Another scalable, fungible and secret cryptocurrency based on the Mimblewimble implementation is Beam (BEAM), which runs on the same basic principles as Grin, including complete control over the user’s privacy. It is worthless. However, this beam has a secret decentralized financial (DeFi) ecosystem with decentralized applications (DApps) for a variety of use cases.
Several mainstream cryptocurrencies are also on the verge of implementing Mimblewimble to add privacy and interchangeability to their blockchains. Therefore, the team behind Litecoin (LTC), a decentralized cryptocurrency network that uses protocols similar to Bitcoin, plans to activate Mimblewimble on the LTC mainnet by the end of 2021, when miners and node operators signal their support.
Ultimately, popular privacy coins like Monero (XMR) and Zcash (ZEC) could benefit from Mimblewimble. However, as of now, no one has chosen to merge with the protocol as it can be an overly complex and arduous task.
Where can I buy and sell Mimblewimble Coins?
Currently, MimbleWimble Coin is traded on multiple exchanges including Bitforex, Hotbit, TradeOgre, Whitebit, and several others. The major instruments are Bitforex and Hotbit and they make up the highest percentage of total cryptocurrency trading volume. You can find more detailed information on MWC trading on world wide web price tracking sites for cryptocurrencies like CoinMarketCap or CoinGecko.
How do you dismantle a mimblewimble coin?
Mimblewimble is based on a Proof-of-Work (PoW) concept that became widespread after the birth of the Bitcoin blockchain in 2008 by taking the effort to solve any math puzzle to prevent frivolous or malicious use of computing power . Thanks to PoW, cryptocurrency transactions can be securely processed peer-to-peer (P2P) without the need for a trustworthy third party.
Mimblewimble is considered to be another implementation of the PoW blockchain that allows for improved privacy and better network scalability. PoW Decentralized Consensus is associated with cryptomining or cryptomining, a mechanism for validating transactions on the blockchain and a process for generating (or mining) new tokens by solving complex math problems. In the case of the Mimblewimble blockchain, this is the process of mining Mimblewimble Coins (MWC), its native cryptocurrency.
A cryptocurrency miner ensures data validity and updates the blockchain database every time it is validated and completed with a cryptocurrency transaction. The mining method itself involves participating in a block of information about transactions and requires solving complex mathematical puzzles using cryptographic hash functions. The first miner to solve it will be compensated for executing the transaction and will receive a small amount of cryptocurrency.
In addition, a cryptocurrency miner needs a machine with special advanced hardware to compete against other miners. Typically, cryptocurrencies can be mined using a central processing unit (CPU), a graphics processing unit (GPU), and an application specific integrated circuit (ASIC) with various algorithms available. Mimblewimble Coin Mining is available for two algorithms: Cuckarood29 and cuckAToo31. The block time is 60 seconds and the block reward is 0.6 MWC.
There are several mining pools available. The largest and most popular website has around 10,000 active users. It is available in multiple languages and has a user-friendly design. All in all, if you are interested in mining MWC in a pool, there are a few steps you need to take.
First, you need to download the mining software, a required version of GPU miner. Second, once your mining rig is ready, you’ll need to get hold of the official MimbleWimble coin desktop wallet. It is available for macOS, Linux and Windows. It should be noted that your local MWC wallet must always be online in order to receive payments from the pool. If you don’t want to do this, you’d better use an address on the exchange where MWC is listed.
Finally, you can edit the BAT file. If you wish, you can enter the name of the rig as you would like it to appear on the miner’s stats page, or leave this line blank.
Mimblewimble vs. Monero
Historically, Monero is a data protection-oriented and decentralized cryptocurrency with the highest market capitalization of all privacy coins. Monero was introduced as a fork of Bytecoin in 2014 and is like “money” in Esperanto, a plug-in language for international use. The aim of the project is to make transactions on the blockchain run privately and anonymously.
Monero is based on PoW. In addition, the project to implement the CryptoNight protocol uses ring signatures to hide the transaction book. It also means that it is impossible to know …