BEAM- A Confidential and Reliable cryptocurrency

sarez (64)in #beam2018 • 6 years ago

The Overview:

Cryptocurrency is digital currency based on cryptography and exchanged directly without requiring any third party intervention (peer to peer exchange), it is decentralized over multiple nodes using the "blockchain" for its transactions. "That transactions take place between users directly, without an intermediary. The transactions are verified by network nodes and recorded in a public ledger, again available for all to see – and this is the ‘blockchain’." - source
Bitcoin is the most widely known cryptocurrency today based on the blockchain. Since the blockchain is a decentralized ledger of transactions which is available always on the internet privacy is a real issue. I am sure that like me you would not want all your transactions out there? What if you had a choice about how much you wish to share?- That is BEAM.
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Introduction to BEAM :

"Beam is a truly anonymous store-of-value coin.
While maintaining the benefits of an immutable and incorruptible blockchain system such as Bitcoin, Beam is also built with scalability and features in mind."
-source
When cryptocurrency exploded onto the financial scene; the ease of transfer, privacy and decentralization attracted (And continues to attract) millions of users. But were these ideals achieved, not a 100%- I would say that is obvious to any one who has to wait for hours for "confirmation" of crypto he has sent or received. For another the blockchain is for all purposes a viewable database of all transactions done by crypto users.

BEAM has evolved as the new-generation cryptocurrency solving the two major problems that are a setback to the whole cryptocurrency world today- PRIVACY and SCALABILITY.

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Let us look at the major features of BEAM as presented in the Beam Position Paper.

Implemented from scratch using C++. No piggybacking on flawed and crowded platforms
Based on the MimbleWimble protocol it is innately secure and fast. Users are in complete control of their privacy. No addresses stored in the blockchain
No trusted setup required. Faster and simpler yet secure transaction protocol
Blocks are mined using Equihash Proof-of-Work algorithm. Balance between memory and processing power is maintained
Limited emission using periodic halving. The value of Beam coin is confirmed for it's users and investors. In fact the earlier you invest the more you profit.
Superior scalability through compact blockchain size. Small blocks mean less requirement of power and faster speeds.

Source-BEAM

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Why does BEAM use the MimbleWimble protocol?

Mimblewimble itself is the name of a spell used to tongue-tie victims in Harry Potter. It is a powerful crypto- innovation which allows the user to keep the transaction data confidential. The addresses of the sender and the receiver are not a part of the block. The use of Mimblewimble makes the money in your Beam Wallet as nearly similar to cash in your pocket as possible. It is being experimentally used by blockchain companies for some time now. BEAM has written a “Scriptless Script” Mimblewimble based protocol for its blockchain.

As Alexander Zaidelson (CEO) Beam says "Privacy is Liberty" and the problem we face is of constant surveillance by a multitude of parties. Why would I want people to know I bought a particular moisturizer or an antacid or a comic book? In most cases we compromise our privacy to get what we need. Cryptocurrency was deemed to be an answer to such problems But...

Pierre Gerard, CEO & co-founder at SCORECHAIN says:
“Bitcoin transactions are fully traceable, it means that we can track any Bitcoin activities. Of course, there are some limitations. If people do mixing or agree to build common transactions, it might be difficult to track the origin of the coins. But it's already a piece of information." -source

"The same technologies that might make billions of people economically irrelevant might also make them easier to monitor and control." Yuval Harari

Mimblewimble uses blinding factors to mask the data AND combines transactions using "Transaction Cut - Through", so transactions, when combined together in a block would simply consist of: a list of inputs, a list of outputs, and signature data. For detailed explanation you can refer to Mimblewimble WhitePaper

Source-BEAM

Why I would choose BEAM
Beam has the advantage of starting from scratch to work Mimblewimble to their specific needs. It is in-fact AN ALTERNATIVE BLOCKCHAIN that will be able to deliver:

Confidentiality of the users and control over which data should be shared and with whom.
Security of the transactions - With MimbleWimble based protocols every transaction is innately secure.
A really fungible cryptocurrency with speed and privacy built-in
Reliability by making a leaner faster blockchain with less transaction details per transaction and smaller block.
Scalability to accommodate massive usage without the problems of congestion and data piracy. And allowing for smart transactions like escrow.
Sustainability - 20% of block mining rewards goes to development of BEAM
Acceptability by the crypto industry via democratization and decentralization of the mining process
Ease of use- A feature rich easy to use wallet for mobiles and desktops which can be used directly by small business owners.
Versatility- the ability to accommodate conditional transactions like time locked contracts, atomic swap, escrow, etc. by using the “Scriptless Script”

Source-BEAM

Applications
Besides the obvious uses in Finance and Global Retail there are numerous applications of BEAM where the amount of money exchanged is sensitive data:

Insurance sector, Tech Start-ups, Global contracts, Arbitration mechanisms, ICOs

Use Cases

A large company needs to pay a retiring officer an ex-gratia bonus but wants that the amount be confidential. Only the board members be allowed to know this information. They pay the officer via BEAM where they can specify the layers of privacy.
A company wants to pay a large sum to promote a political campaign but does not wish to be associated with the party for now. They can use BEAM to keep the donors name private.

Alexander Zaidelson (CEO) Beam speaks at the Tel-Aviv Meet Up