Understanding Mimblewimble Protocol - Part 2
Hello everyone, hope you all are doing good? I'm back with the Part 2 of this amazing series, Understanding Mimblewimble Protocol. If you haven't read the Part 1, I strongly suggest you that by clicking here. In today's article we would be looking at understanding of Confidential Transactions (CTs) and how Mimblewimble Protocol can be utilized on the Bitcoin Network to enable anonymity of transactions and improve scalability.
Confidential Transaction is a cryptographic protocols which ensures that the type of asset, addresses and amount of the asset transacted are not visible by the public, but only between the two parties involved in the transaction. For instance, Person A sent 0.5 Sol to Person B. The public won't know that, the asset which was transacted was Sol, they won't also know that the amount was 0.5 Sol and lastly, they won't know the transaction was between Person A and Person B.
From the image above, you can clearly see how Bitcoin network works, which is regarded as Normal, transaction details can be visible and tracked by the public. Whereas the Confidential transactions, showed no transaction details of it's users.
But how does Confidential Transactions work and gets verified by miners of blockchain? Confidential transaction makes use of Pedersen commitment scheme, which is a homomorphic encryption process. This type of encryption process ensures that miners can be able to verify and validate an encrypted data, hence, the details of the transaction remains private and unknown to the miners.
How Mimblewimble Protocol Can Be Utilized On The Bitcoin Network To Enable Anonymity Of Transactions And Improve Scalability
More and more people are getting more privacy conscious and Bitcoin network seems not to be improving it's privacy features as users transactions are open to the public to view and track, which isn't great for the future of Bitcoin network. And also, the scalability of Bitcoin network, is quite not fast when compared to other blockchain network such as BSC, SOL, FTM, and others.
Bitcoin can easily enable anonymity of transactions and also improve it's scalability by simply utilizing Mimblewimble Protocol, but how?
As we already know, Mimblewimble Protocol, enables transactions by users of it's network to be invisible by the general public, as it makes use of both Pedersen Commitment Scheme and Elliptic Curve Cryptography to hide transactions details such as the type of assets transacted, the amount transacted and the address of both the receiver and the sender. Hence, if Bitcoin network could integrate both the Pedersen Commitment Scheme and Elliptic Curve Cryptography to it's network, privacy and security worries by users will be greatly satisfied.
How can Bitcoin network improve it's scalability through utilizing Mimblewimble protocol? Since Mimblewimble Protocol doesn't record user's transaction data such as the address of the receiver and sender, the type of asset transacted and the amount involved, it's network is saving more data storage, which will help improve the network's scalability. Hence, if Bitcoin network could adopt this approach, it's scalability will be greatly improved.
I hope you all found the article interesting and exciting. Do well to share your thoughts about the article in the comment section below. Thanks.