What is Mimblewimble?
Mimblewemble is a privacy-based decentralized protocol that uses a fancy way to structure and store transactions in blockchain. It was designed and launched by an anonymous developer known as Tom Elvis Jeduser, the French rival of “Voldemort” in mid-2016.
How does Mimblewimble work?
Named after the well-known tongue-tied spell in the Harry Potter book series that binds the victim’s tongue to prevent it from disclosing certain information, the Mimblewemble protocol literally acts as a spell. It provides a framework for a blockchain that offers a new field of possibilities in terms of scalability, fungibility, privacy and crypto anonymity, as the protocol allows cryptocurrency information to remain completely anonymous.
The complete anonymity feature of MimbleWimbal transactions stands in contrast to the pseudonyms of Bitcoin (BTC) and other cryptocurrencies where three privacy details are usually disclosed: the sender’s address, the amount of the crypto sent and the recipient’s address. Mimblewimble does not disclose any of the three privacy or information.
Mimblewimble’s cryptographic method
Mimblewemble’s cryptographic method is called elliptic curve cryptography (ECC). ECC allows Mimblewimble to meet the two main requirements for verifying the exact amount of transactions and the parties involved without disclosing any information to the public.
ECC is built on isolated logarithms, which further complicates blockchain equations. Basically, logarithms are the opposite of quality which is much easier to perform than factorization. The term detached refers to a branch of mathematics that revolves around a set of isolated mathematical values and covers topics such as probability and set theory. Therefore, the implementation of the ECC Mimblewemble strengthens security.
In addition, Mimblewimble integrates cryptographic protocols such as Confidential Transactions (CTs), CoinJoin, Dandelion, and Cut-through to provide a higher level of security and anonymity. In general, these protocols help to conceal transaction information.
Thus, the confidential transaction protocol, which is also used in other privacy coins like Monero, conceals the value of a transaction in Mimblewimble. The CoinJoin protocol makes it almost impossible to trace the trail of transactions. Thanks to this, public addresses of transactions can be hidden by combining payments from different senders under a single transaction.
Through the implementation of the Dandelion Protocol, the identities of both the sender and the recipient can be kept confidential and private. The cut-through protocol combines multiple transactions into a single set to create small transaction blocks to allow scalability. Due to the cut-through, data can be easily removed from the blockchain without any security risk.
What are the main features of Mimblewimble?
When talking about the MimbleWimbal protocol, it is always said that it adopts three distinctive features that make it unique compared to other blockchains.
First, it is anonymous. Unlike most other blockchain systems, which are primarily pseudonyms because they have identifiable public addresses that determine the sender and recipient of a given transaction, the transaction history cannot be tracked at Mimblewemble. Thanks to the protocol design, it becomes extremely difficult to bypass an anonymous user.
The second feature is the fungus. MimbleWimbal’s trace-to-trace assets make it more fungus than other blockchains, as users can exchange any cryptocurrency on the platform without the risk of loss or the possibility of cryptocurrency being “stigmatized”.
The third feature is scalability. According to Blockchain Basic, each node adds transaction information to the laser to increase the size of the block. Large blocks cause scalability problems which indicates the limited capacity of the blockchain network to handle a large amount of transaction data in a short period of time. By implementing CoinJoin and Cut-through to eliminate unnecessary transaction data and reduce block size, Mimblewimble achieves higher scalability due to the size of the compact blockchain.
Who uses Mimblewimble?
There are several crypto projects that choose to deploy MimbleWimbal because of its strong security, privacy and scalability.
Thus, Mimblewemble’s native cryptocurrency, Mimblewemble Coin (MWC), or “technically superior ghost meaning,” as Mimblewemble developers have described, uses the protocol.
The theory behind the use of Mimblewemble in 2016 was first put forward by a group behind a privacy-saving digital currency called GRIN. The developers of Green’s Lightweight Open Source Project laid the groundwork for the project at Mimblewemble, but only launched it in January 2019 on the basis of Mimblewemble implementation.
Another scalable, scalable and confidential cryptocurrency based on the implementation of Mimblewimble is Beam (BEAM), which follows the same basic principles as Green, with complete control over users’ privacy. Not a bad thing. However, Beam has a confidential decentralized financing (DeFi) ecosystem for extensive use of decentralized applications (DApps).
Some mainstream cryptocurrencies are in the process of deploying MimbleWimbal to its blockchains to add more privacy and fungus. So, the backbone of Litecoin (LTC), a decentralized cryptocurrency network that uses similar protocols as Bitcoin, plans to activate Mimblewimble on the LTC mainnet by the end of 2021 if miners and node operators signal their support.
Finally, popular privacy coins such as Monero (XMR) and Zcash (ZEC) could potentially benefit Mimblewimble. However, no one has yet decided to integrate with the protocol, as it can be a very complex and difficult task.
Where to buy and sell a Mimblewimble coin?
Currently, MimbleWimbal coins are traded on BitForex, HotBit, TradeOgre, WhiteBit and a few other exchanges. The fundamentals are BitForex and HotBit and account for the highest percentage of the overall cryptocurrency trading volume. More detailed information on MWC trading can be found on price-tracking websites for cryptocurrencies such as CoinMarketCap or CoinGecko.
How do you mine a Mimblewimble coin?
Mimblewemble is based on the Proof-of-Work (PoW) concept, which was widely adopted after the introduction of the Bitcoin blockchain in 2008. PoW describes a decentralized consensus process that requires a potential amount of effort from members, not a trivial one. Network to spend an effort to solve arbitrary mathematical puzzles to prevent wasteful or malicious use of computing power. Because of PoW, crypto transactions can be securely peer-to-peer (P2P) processing without the need for trusted third parties.
Mimblewimble is considered a different implementation of a PoW blockchain that allows for increased privacy and network scalability. PoW decentralized consensus is linked to cryptocurrency mining or crypto mining, a process of verifying transactions in blockchain and creating (or mining) new tokens by solving complex mathematical tasks. In the case of the Mimblewemble blockchain, it is the process of mining the native cryptocurrency of the Mimblewemble Coin (MWC).
A crypto minor guarantees data validity and updates the blockchain database with a cryptocurrency transaction every time it is verified and completed. The mining method involves participating in blocks containing transaction information and solving complex mathematical puzzles, including cryptographic hash functions. The first miner who solves this is compensated for the transaction and receives a small amount of crypto.
On top of that, a cryptocurrency miner needs a machine with specially developed hardware to deal with other mines. Typically, cryptocurrencies can be mined with a central processing unit (CPU), graphics processing unit (GPU), and an application-specific integrated circuit (ASIC) available with different algorithms. Mimblewimble coin mining is available in two algorithms: Cuckarood29 and cuckAToo31. The block time is 60 seconds and the block reward is 0.6 MWC.
Several mining pools are available. The largest and most popular has about 10,000 active users. It is available in many languages and has a user-friendly design. In general, if you are interested in digging MWC in the pool, you need to complete a few steps.
First, you need to download the mining software, a required version of GPU Miner. Second, once your mining equipment is ready, you need to get the official MimbleWimble Coin desktop wallet. It is available on MacOS, Linux and Windows. It is worth noting that in order to receive payments from the pool, your local MWC wallet must always be online. If you do not wish to do so, it is best to use an address on the exchange where MWC is already listed.
Finally, you can edit the BAT file. If you wish, you can specify the name of the rig to display it on the excavation statistics page or leave this line blank.
Mimblewemble vs. Monroe
Historically, Monero has been a privacy-centric and decentralized cryptocurrency with the highest market capitalization among all privacy currencies. Launched in 2014 as a bitcoin bitcoin, Monero is like “money” in Esperanto, a helpful language designed for international use. The goal of the project is to allow transactions in blockchain to be conducted privately and anonymously.
Based on Monero PoW. On top of that, the project implements the Kryptonite protocol which uses ring signatures to hide the transaction ledger. This means that it is impossible to know the total amount of XMRs held by a particular user.
Ring uses confidential transactions that combine confidential transactions, ring signatures and stealth addresses, enabling Monero data privacy. In this way, confidential transactions help to hide the amount transferred. The ring signature adds at least six “decoy” coins to each transaction, to look like the actual currency spent on the transaction.
Therefore, it makes it impossible to identify the sender and the receiver, as the details about them and the amount of crypto transfers are unclear. However, the use of ring signatures creates some significant errors. For example, due to the ring signature, additional data is attached to each transaction which significantly increases the size of the block. The size of the Monero blockchain is large and will continue to grow with widespread adoption, compromising usability.
Compared to Monero, Mimblewimble is a very elegant protocol that allows for both anonymity and scalability. Privacy is enabled by default in Mimblewimble as the amount transferred, the sender and the recipient are hidden using confidential transactions. In addition, the mumbleweed cut-through mechanism keeps the size of the blockchain small.
Thus, compared to Monero, Mimblewimble achieves excellent privacy and scalability. Some visible flaws in the MimbleWimbal protocol. Clearly, the MimbleWimbal protocol has promising innovative features aimed at overcoming security, privacy, and scalability issues with blockchain technology.
However, from a design standpoint MimbleWimbal has a few drawbacks. First, the speed of its transactions is low due to the size of the data due to the implementation of confidential transactions. Second, the Mimblewemble protocol poses a potential risk to Quantum computer attacks. While holding great promise in many cases, quantum computing poses a potentially significant threat to cyber security by undermining existing encryption methods.
Quantum computers will be able to solve complex puzzles and find out the algorithms behind encryption keys that protect user data and blockchain infrastructure as a whole. Mimblewemble relies on digital signatures, so if such an attack occurs, blockchain transactions can only be made anonymous.