Investors in the cryptocurrency market deem security and anonymity as aspects of high importance when investing their money. The need to store money safely and perform reliable transactions in a decentralized manner has given Bitcoin and Cryptocurrencies their very much acclaimed popularity in their evergrowing market. However, although the blockchain technology is secure in comparison to other existing systems, it has been shown to have many weaknesses; by tracking and tracing transactions on the network, it is possible to know the identity of the investors, since all the transaction data, including the amount of transactions, are visible to everyone in a public ledger.

Once the identity of an investor is known, it also possible to know the history of all the transactions that have been made, which represents a personal risk to the user since its investments could be subject to kidnapping or theft by unscrupulous persons. That is why Beam, taking into account the security of its users, has created a safe and reliable system to perform transactions where it is impossible to track their users.

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Beam is a decentralized confidential cryptocurrency, whose main characteristics are its scalability and the anonymity offered to its users.

It has been shown that transactions in the Bitcoin network are not totally anonymous as many thought they were due to the generation of random private and public key pairs which was supposed to ensure safety to the user. However, data can be filtered and through the tracking of transactions in the blockchain the identity of the users can be traced, resulting in a problem for investors where confidentiality is paramount.

Beam guarantees anonymity and scalable peer-to-peer transactions.

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- Confidentiality:

With Beam users have the option of deciding what transaction data they want to share on the network and with whom, giving them privacy. The details of the transactions such as the amounts transferred and identity of the participants are hidden with Beam, so that the transactions and the balance of these can only be seen by people authorized by the user. In addition, the addresses of both the issuer of the transactions and the receiver are hidden.

- Scalability:

Due to the growth of the cryptocurrency market, systems based on blockchain technology such as Bitcoin have become heavy due to the large volume of transactions they handle, making these systems inefficient and not scalable.

Beam offers a solution to this issue as it uses a protocol based in Mimblewimble that has smaller blocks, which allows faster confirmations per transaction, making it more scalable than any other blockchain. It allows the user to tie a complete blockchain that has multiple transactions in a single transaction. In addition, it is possible to do different types of transactions in a private escrow, time locked, atomic swaps, etc.

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Beam is based on a new protocol called Mimblewimble published in August 2016 by an anonymous author. It is based on two concepts proposed by Greg Maxwell that are: Confidential Transactions and Transaction Reduction. Its name is based on a Harry Potter spell known as the tongue tying silence spell.

Mimblewimble, which prevents your opponent from accurately casting their next spell. [Source]

Source of Image Source of HP's glasses

This spell prevents the victim from speaking about a certain topic that the user wants to keep as a secret, this name being chosen to this protocol due to the privacy it confers to the user.

Mimblewimble focuses on two types of transactions:

- Confidential Transactions:

It basically has the properties of Hide and Bind, where each entry and exit of a transaction uses a linear combination of two factors: a real value of the transaction and a blinding factor. The issuer of the transaction reveals its value and a blinding factor to the receiver, it also creates a new transaction using a different blinding and sends it to the issuer, the system creates a very safe and impossible to trace intermediate transaction.

- Transaction Cut – Through:

A block in a blockchain is a list of multiple transactions that enter and leave the system, it can be seen as a large transaction that can be "cut" by joining all intermediate transactions. In this way we obtain a system that only needs to store the current state of the transactions instead of the complete history of all the transactions that were made.

After a user creates the transaction, the Mimblewimble system only verifies the real value of the transaction and the blinding factor among the participants to validate the transaction, that is, only the commitment in the blockchain is recorded, not the addresses of the users or the quantities exchanged. In this way it is impossible to know the identity of the users, making this system one hundred percent secure.

Mimblewimble works with smaller blocks by reducing the amount of data required to store and verify transactions.

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This innovative system puts in the hands of its users a wallet for desktop computers and mobile devices, compatible with Mac, Windows and Linux, safe and easy to use.

With Beam you can make transactions in your wallet and the information of the transaction data will never be traceable. It also offers the option of security deposit that you can use when making a deal, providing security to your investment.

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Beam uses the Equihash algorithm widely used by miners around the world, bringing a set of tools to run and manage mining nodes.

Beam will be used mainly as a "store of value" and not as a "means of exchange", since its performance in terms of number of transactions made per second is not high enough, however we can say that it is better than the Bitcoin network.

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Beam will allow its users to send and receive money confidentially. It is a very secure system based on Mimblewimble where the address and quantity in the verification of transactions are eliminated, making it impossible to trace the identity of its users. It must be noted that its scalability makes Beam one of the most convenient options to make transactions, since it works with smaller blocks, decreasing the system load, which make the transactions much faster. Likewise, when making transactions from your Beam wallet the information of your data can never be tracked, it also offers the option of guarantee deposits.

Beam will have a huge impact on the blockchain as it offers advantages to its users that guarante that new investors wish to participate in the cryptocurrency market. For investors with large capitals where protecting their identity is a priority Beam is an alternative that must be considered when investing.

Investing in Beam is a safe and easy-to-use alternative.

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