Introduction
The cryptocurrencies and blockchain technology emerged with established rules and parameters that determine their operation. This registration technology, composed of a set of codes on which all its operation is based, is open and free, so that any developer can see it, inspect it and use it without major inconveniences.
Since the beginning of the cryptocurrencies, starting with bitcoin and with the passage of time, modifications have been applied in the ecosystem with the purpose of improving their performance. Although the idea of the blockchain since its inception has been accepted by the majority, today there is a common concern among the people and organizations that use it and prefer to maintain the reliability of their data and / or records to avoid access ( not authorized) to the information and thus protect them from possible revelation.
Let's talk about Beam
Beam is a scalable confidential cryptocurrency that in addition to maintaining the benefits of the blockchain system such as incorruptibility and immutability works in conjunction with the Mimblewimble protocol, which is established as a side chain integrated or parallel into the blockchain system to provide private transactions.
What does the Mimblewimble Protocol refer to
Let's see an example.
When you are initiating a transaction on your computer, the Bitcoin client sends the necessary data to other clients, effectively transmitting the Bitcoin transfer to the network. Bitcoin does not encrypt your traffic, which means that your internet service provider, the owner of the WIFI, or anyone can look at your transactions and determine (or rather browse) if your Bitcoin amount is balanced by your effort.
So that's where you say, well ...
And now how can I maintain my anonymous funds / transactions?
The transparency of the blockchain technology is what allows bitcoin to be a decentralized cryptocurrency. However, the lack of confidentiality can create certain fears among users because they do not want to expose their data and transfers and that these are being revealed.
Now, there are certain projects that are joining the blockchain technology to provide greater reliability to transactions with cryptocurrencies. One of these projects is Mimblewimble, a feature that improves data privacy, proposed by Bitcoin and used by Beam. Manages 2 concepts, confidential transactions and transaction reduction.
In the system of confidential transactions, all values are encrypted with strings of random numbers called "blinding factors". This means that the values can not be seen directly, they are rather encrypted, generating an encrypted result that, when deciphered, coincides with the result of the operations performed. This means that the values are encrypted, but that it is possible to calculate, since, if all the output values minus all the input values are added and turn out to be zero, it verifies that the transaction was valid.
MimbleWimble uses a compromise protocol known as the Pedersen Commitment where the quantities are encoded by the following equation:
C = r * G + v * H
Where:
V = is the real value.
r = is a blinding factor. A secret key that hides the real value v.
G and H = are generators point in a specific elliptical curve.
Each entry and exit of a transaction is, therefore, a linear combination of two factors: a real value of the transaction and a blinding factor.
A block in a chain of blocks is a large list of transactions and can be considered as a large transaction, which allows us to "cut", that is, merge all the intermediate parts generates both within a single block and through multiple blocks in the block chain, (combining all transactions between AC). Applying this principle to the entire Blockchain can create a system that only needs the current state of transactions instead of the complete history of all transactions as they occurred.
For example, if we have two identical transactions: from A to B, and then from B to C, we can cut the intermediate transaction, which results in a merged transaction between A and C, which is a valid transaction in the system. This concept allows Mimblewimble to work with smaller blocks.
So,
Main features of Beam
What are the benefits of Beam?
- The main benefit of Beam is that users have full control over the privacy of their data and / or transactions, the user decides what information will be available and to which parties, having complete control of their information according to their needs and the applicable laws.
- With Beam the transactions do not produce a computational overload, thus avoiding a penalty.
- A trust configuration is not required with Beam.
- The Mimblewimble system does not store addresses in the block chain, that is, there is no information about the issuer or receiver of a transaction.
- Superior scalability through the compact size of the block chain. The MimbleWimble Beam block chain has orders of magnitude smaller than any other blockchain implementation.
- Beam supports many types of transactions, such as escrow transactions, blocked time transactions of atomic swaps among others.
- It is safe to say that Beam will be a bit better than bitcoin and other existing currencies in relation to the performance of your transactions per second.
- Beam will have a desktop wallet application for Mac, Windows and Linux.
Beam uses the Equihash extraction
Equihash is a mining algorithm used by bitcoin. The main objective of creating Equihash was the development of an algorithm that respects the ASIC (Integrated Application Specific Circuit) that allows avoiding the centralization of the mining process in the hands of a few miners, thus contributing to the democratization of digital currencies.
How will Beam work as a compact blockchain?
A compact block chain means that the information needed to validate all the blocks is smaller than the complete list of transactions, the data is not necessarily deleted, simply block headers will be downloaded and the current state to verify the entire chain.
Final considerations
Confidentiality of transactions is a concern of the first order even if it does not seem like it. There are legitimate reasons to protect personal or corporate data because the information is a source of power, therefore it must be kept confidential and integrated, that is, it can only be accessed by authorized persons.
The most heard cases in relation to the subject are those of people or organizations that present large volumes of bitcoin (for suspicious origin) and that are investigated by intelligence agencies many times with the intention of extorting them or simply fine them to remove a percentage of their crypto.
Now, with Beam, the confidential cryptocurrency scalable with the Mimblewimble implementation, provides the option to maintain the privacy of data and transactions because we all have the right to keep confidentiality about purchases on banking data and even health when transactions are processed they involve. Through this new project the privacy of all operations will be maintained and in this way avoid: The disclosure of the identity of the users, the disclosure of the available funds, the information of what is bought or sold, and the disclosure of the position of the market participants that puts them at a disadvantage with the competition.
Here I share a video:
References
Beam Website
Beam Position Paper
Mimblewimble Paper
Beam Youtube
Beam Telegram
Beam Facebook
Beam GitHub
Beam Bitcointalk
Beam Medium
Beam Twitter
Shared in twitter
https://twitter.com/norkamoran1/status/1039017636036792320
- norkamoran1
beam2018