The world of cryptocurrencies offers many benefits to its users. Among these are decentralization, convenience, safety, and anonymity. These benefits are perhaps more needed now than ever, seeing as banks, credit card companies, and financial institutions are quelling businesses by cutting off their cash supply. Now, however, there’s a new kid on the block(chain) and the magic word is ‘confidentiality’.
What is Beam?
What is Mimblewimble?
The name of the new blockchain protocol supporting the Beam cryptocurrency doesn’t really make it sound like a serious project. Although it could be mistaken for a parody token like Dogecoin, Mimblewimble is, in fact, a very real protocol. What’s the story behind the weird name? Mimblewimble is a name taken from the Harry Potter novels. In the magical universe of Harry Potter, Mimblewimble is a spell that prevents a person from revealing secrets. An appropriate choice for a blockchain protocol that prides itself on
What’s wrong with the current protocols?
The aim of the protocol is to provide more confidentiality –more so than Bitcoin and Ethereum currently provides their users. You may wonder what’s missing with the current popular Bitcoin and Ethereum protocols. The team behind Mimblewinble points out that while Bitcoin and Ethereum offer pseudonymity, they do not offer real anonymity. Users are still susceptible to what is called blockchain forensics. That is the practice of mapping out certain transactions in order to identify the individuals carrying them out. Furthermore, user data is at risk due to various data leaks that can happen along the way.
What about the existing privacy coins?
You may have heard of other privacy coins like Monero, which uses ring signatures and stealth addresses to protect the identity of their users. According to the team behind Beam and Wimblemimble, these security measures are not enough. The existing privacy coins have vulnerabilities that make them unfit for purpose. Finally, they are not scalable, says the developers.
How does Beam work?
With so many criticisms leveled against their competition, we would expect the Beam blockchain to provide some evidence to support their claims. According to the literature published by their team, the new protocol will still be working on a distributed ledger and use decentralized validation of financial transactions. So far, so good. The big difference is that there will be no public record of the sender and receiver’s addresses, nor will the transaction amount be available.
Sovereignty over one’s own data
The CEO of Beam has expressed how important he believes it is to be the boss of your own data. He has said that data sovereignty is a human right and that it’s particularly important when it pertains to financial transactions. The Beam blockchain builds on the foundations of the Bitcoin blockchain, but with the added protection of Mimblewimble. The aim of the project is to be accessible to both new and existing cryptocurrency users. With the added protection of Wimblemimble, people who have been hesitant to enter the market due to privacy concerns may now be less reluctant.