Understanding Mimblewimble Protocol - Part 3 & Final Part
ello 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 the Pros and Cons of the Mimblewimble protocol and a brief detailed analysis about a crypto project that uses the Mimblewimble protocol(BEAM).
The Mimblewimble Protocol have it's Pros and Cons, which I will be letting you in on below, as we start with it's Pros.
Pros Of Mimblewimble Protocol
- Privacy: The Mimblewimble protocol promotes and ensures anonymity of transactions in networks, as transactions details are hidden from the public.
- Scalability: The Mimblewimble protocol is highly scalable as it doesn't record transaction details in it's network, hence, saves data storage, which leads to faster transaction speed.
- Fungibility: The Mimblewimble protocol ensures increased fungibility. Fungibility means the ease for assets to exchanged between users. This is because users can't know the source of assets i.e track the assets.
Cons Of Mimblewimble Protocol
- Security: The overdependence of digital signatures in the Mimblewimble protocol, might result to malicious attacks from quantum computers.
- Fungibility: This can be Pro and also a Con to the Mimblewimble Protocol. Many users who should be blacklisted(Malicious hackers), hence, wouldn't have been able to exchange their assets between users, can be able to, on Mimblewimble protocol, as assets and addresses can't be tracked nor traced.
BEAM Blockchain
Beam is a privacy coin that utilizes both the MimbleWimble and LelantusMW protocols in order to explore the world of Confidential Decentralized Finance. Beam was launched in March, 2018, as it seeks to provide privacy utility coin that will serve as a medium of exchange with complete anonymity and serve as a confidential store of value.
The Beam blockchain makes use of the Proof-of-Work(PoW) to reach it's network consensus. BEAM uses the MimbleWimble protocol to help provide high level of privacy and fungibility with the blockchain. Users' don't have addresses on the blockchain, as transaction are private by default. Users make use of Pedersen Commitment inputs which will be known by both the receiver and sender to make transaction privately and by doing such, coins transacted in Beam blockchain can not be tracked nor traced, hereby enhancing the fungibility of the blockchain.
Beam is currently ranked 482, with a market capitalization of about $67.7 million, according to Coinmarketcap. It's current market price is $0.69 and it's all time high was $3.21 which was achieved on Jan 29, 2019. The max supply of Beam tokens is 262,800,000 while it's current circulating supply is 96,878,320 Beam tokens.
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.
