How would you feel if I gave you a million Bitcoins? I am sure you would feel great. The only condition is you have to spend them or invest them somewhere.
Do you think that this is good opportunity? Then think again.
The bitcoin is a blockchain based cryptocurrency. This means that every transaction coming into or going out of every existing bitcoin address is logged in on to an online ledger or blockchain.
So technically every transaction that you make every satoshi that you spend, send out or receive is known to the whole world.
It would be easy for anyone to know about your wealth, the money you hold and how and where you spend it.
OMG!!! THE FEELING IS LIKE BEING NAKED IN A GLASS HOUSE AND THE WHOLE WORLD CAN SEE YOU
In a world where people can get mugged, kidnapped or even killed for a few dollars you cannot even image the consequences of everyone knowing how much crypto you have and what are you doing with it.
Trust me it is one of the worst things that you happen to you. You are losing out on your financial privacy. Which is actually very bad for you.
Even without this jackpot offer of mine you and almost every cryptocurrency user is in the same boat.
The transactions can be tracked and lack anonymity, privacy and confidentiality.
If this was not enough there are scalability issues that the bitcoin community has to contend with.
BEAM is here to solve all these problems of Bitcoin and other cryptocurrencies.
so when you think of Beam think of it as a cryptocurrency where the transactions remain anonymous. Thus it lets you store value and yet not disclose the information to the world. At the same time the beam transactions are immutable and incorruptible.
Here are the features of Beam that makes it super useful
i) Confidentiality :The information about transactions is not stored onto the blockchain thus keeping them private. The user decides
as to what information is to be shared between him (sender) and the receiver of the transaction.
ii)Versatility: atomic swapping, escrow, and time-locked transactions can be implemented using its “Scriptless Script” technology
iii) Scalability: Since Beam is based on Mimblewimble therefore it it reduces computational overhead (due to the “cut-through”
feature of Mimblewimble)
iv) Sustainability: It is developed as an open source project which is community governed . This is backed by the Beam growth pool .
20 % of the block mining rewards go to this pool and are used to give an incentive to developers and those promoting Beam.
v) Usability: It has both desktop and mobile wallets so that a user can pick one according to convenience. It is well suited for
individual users as well as small businesses. It is quite easy to manage the budget from the wallet dashboard.
vi) Compatibility: it is based on the Equihash algorithm so that it is compatible with GPU miners.
The availability of plenty of tools makes it easy to run and manage the mining nodes.
Understanding how Beam compares with other cryptocurrencies
Beam and Mimblewimble
Mimblewimble is a protocol with a focus on privacy without sacrificing scalability. It uses bulletproofs that is a zero knowledge proof protocol
Mimblewimble focusses on the following aspects.
i) Confidential Transactions
A cryptographic commitment scheme ensures Confidential Transactions using hiding and binding.
The locking part works similar to your hiding a message in a box and lock it (hiding)
when you want to share the content of the box or the message inside you can give the key to the desired recipient who would ensure that your commitment is valid (binding)
ii) Transaction Cut – Through
In a blockchain a block defines a large list of transactions that can go through as a single transaction also refer to as “cut through”
It works on the principal that only the current state of transactions are needed in the system rather than the complete history as is the case with bitcoin.
only the commitment is recorded on the blockchain after creating the transaction. it does not record neither the addresses of the
transacting parties nor the amount. This reduces the data that needs to be stored .
Thus Mimblewimble works with small block sizes efficiently.
Understanding how Beam works.
Transacting using Beam can be understood in the following steps
- Two users with Beam wallets can create online or offline transactions. these transactions involve the two wallets signing the transactions based on the Schnorr Protocol.
- The transactions get sent to a node here they get verified and are added to the mining pool.
- The mined blocks that contained the new transactions are sent to known peers. A fast sync process completes the transaction.This works on the principle that the node requests the compacted history initially when it connects to the network initially. This contains only the system state and the blockchain headers.
- This method does not require the entire transaction history and the transaction can be completed with small block sizes.
Beam Use Case
Jack has an online consultancy. He gets project work from big clients and employs freelancers to complete the project work.
Since the freelancers are in different parts of the world thus he is mulling making payments using cryptocurrencies.
The challenge here is that there is lack of privacy. He does not wish to upload the payment details of the people he engages onto the blockchain. He would rather keep the payment details and worker identities private.
Beam has the solution for Jack
using Beam Jack can ensure that the payment transactions are secure and confidential. There is no need to upload the addresses of the workers or their identities in any form which can be track back to the workers.
More Information & Resources:
- Beam Website
- Beam Position Paper
- Mimblewimble Paper
- Beam YouTube
- Beam Telegram
- Beam Facebook
- Beam Github
- Beam Bitcointalk
- Beam Medium
- Beam Twitter
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