BEAM: The Scalable Confidential Cryptocurrency

orianna (42)in #crypto • 6 years ago (edited)

INTRODUCTION

In recent years we have seen the cryptocurrency platform grow giant steps with the emergence of Bitcoin, efficiently improving our management of electronic money, with coins that are progressively escalating on the platform. Currently we can find projects that range from distributed computing to enterprise solutions that are applied to any field, be it medicine or automotive industries, for example.

As we know the main need that people have to store our money and be able to transact safely without relying on any authority that is centralized, it is still the most important use case in the platform, which is the reason that the bitcoin remains the most valued and influential cryptocurrency today and what it has been for about 10 years.

IMAGEN SOURCE

And know Beam is the next generation cryptocurrency confidential based on an elegant and innovative MimbleWimble Protocol

Here's a presentation by the CEO, Alexander Zaidelson:

About BEAM Project

Initially it was thought that the transactions in the Bitcoin network were completely anonymous, that they generated pairs of private and public keys at random, and the use of the public part to form an address that would later be used to control the transactions. However, many Bitcoin users assumed that none of this process should link to their real identity in which they were wrong, many investigations have shown that there is always leakage of some data. Either by commercial exchanges, OTC agreements or even collections and groupings of blockchain data. Situation that should not be ideal.

It is logical that people and organizations want their balance or monetary transactions to be totally private and confidential, only authorized people can see it.

In August 2016 a protocol with an elegant design was published by an anonymous author focusing on the topic of the confidential and efficient blockchain. Called MimbleWimble.

A reference to a spell from Harry Potter books, and it builds upon two concepts originally proposed by Greg Maxwell, namely Confidential Transactions and Transaction Cut - Through. The following is a high level explanation of the key principles of MimbleWimble. -Whitepaper

Confidential transactions are implemented through a cryptographic scheme that has the properties of: "Hiding and Linking".

Something similar to giving someone a safe with a hidden message inside, however only we will know the combination. Each entry and exit of a transaction is a linear combination of two factors: in which one is a blinding factor and the other a real value of the transaction.

After creating the transaction between two wallets, either online or using any other secure mechanism, only the commitment is recorded in the chain of blocks. This means that no matter the resources of the attacker, you can not extract personal information from the chain of blocks.

WHAT MAKES BEAM "SPECIAL"

IMAGEN SOURCE

The users have absolute control of our privacy.
Confidentiality.
Does not require a configuration of trust.
Limited emissions.
There is no information about the issuer or receiver of a transaction.
Scalability is superior through the compact size of its blockchain.
BEAM allows several types of transactions, like time locked transactions atomic swaps and more.
Do not preempt.
It has been implemented from ZERO! by a professional team of developers.

Here's an Comparation between BEAM and Others. SOURCE.

Conclusion

After reading the white paper and resources of the Beam Project, I can say that they want to give us a surprising evolution of cryptocurrency transactions. They want to give us

Confidentiality: offering totally private transactions in which we can choose who can see our information and who can see exactly.
Versatility: through a technology with a wide variety of transactions for us to choose whether they are atomic swapping, escrow, and time-locked transactions.
Scalability: feature of Mimblewimble helps to avoid excessive computational overhead.
Sustainability: Since it has been implemented from scratch, governed by the community and supported by the BEAM GROWTH POOL, 20% of the block mining rewards is destined for the development and promotion of BEAM.
Usability: A wallet for desktop and mobile.
Compatibility: BEAM comes with an extensive set of tools for running and managing mining nodes

This means that Beam offers us great privacy and efficiency when carrying out our transactions with cryptocurrencies.

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