MIMBLEWIMBLE PROTOCOL, CRYPTOACADEMY SEASON 4/ WEEK2/ HOME-WORK POST FOR FREDQUANTUM.

kingcent (67)in SteemitCryptoAcademy • 3 years ago (edited)

INTRODUCTION

Blockchain technology in this present generation have stabled the sheep in tense of security, accessibility and Transparency, all this are characteristics of a block-chain, in an open blockchain informations in there are in the public domain anyone who cares can access it, but almost impossible to gain access to the data been stored in the various Blocks.

We have different blockchain's but in general you can get access to it and view the latest informations been registered on a block, address, and other things, comparing it to our regular financial system which is centralized, blockchain is Decentralized in and secured and immutable as well that's why the standard of security of assets. Many thanks to you professor @fredquantum i have gone through the lecture you really Explained well. Here let's keep the ball rolling as we talk more about MIMBLEWIMBLE.

In detail, explain your understanding of the Mimblewimble protocol.

Mimblewimble inception is associated to a blockchain protocol which gives room for a total
Private transactions, we know blockchain is transparent and transactions carried out there is seen in the public space but when it comes to mimblewimble is totally different from pseudonymous Bitcoin cryptocurrency, the security framework is unique and the various addresses are seen very confidential.

When it comes to it's ledger there is a difference courtesy what we have in the normal crypto chains, mimblewimble was invented by Tom Elvis jedusor, from France he's motive was to design mimblewimble to have greather privacy than Bitcoin. I think it will be massive to see mimblewimble been merged with Bitcoin protocol trust me that will be all time massive thought it will be very difficult.

Talking about the efficacy of mimblewimble in side-chain I think it will thus bring an enhancement to Bitcoin, currently implimentations have begun regarding mimblewimble.

last year October 2020, there was a launch which was seen executed by popular cryptocurrency Litecoin, simply to give more rigidity to it's privacy and scaling, from my explanations so far you should be able to understand that mimblewimble is simply a blockchain protocol that paves way for a private transactions.

Discuss in detail how the Mimblewimble blockchain protocol works.

Transactions here have a Unique and descent structured at which it works, in general transactions here are seen very confidential, there are other platforms who adopt this transaction methods like the Monero, let's say I want to transact with a third party with a specific token and I want to send, you will understand that the whole process is encryted by a way of blinding factor.

Blinding factor refers to me the sending having a random value at which I will choose from, now let's say the third party who is the receiver if he selects a Similiar value then we will say the transaction is properly valid.

One thing you should know is that in mimblewimble it's compulsory that blinding factor should be selected by the sender, at this phase it seems that you are the true owner of the assets/coin that you want to send, as for the receiver they have the full backed authority to make use of the coin.

One essential feature of mimblewimble protocol that I can't hesitate to highlight here is cut-through, how it works amazes me alot, it performs like a score-board thereby agregating the transaction imput, and outputs, just for the transaction carried out on the blockchain to show in a smaller block.

we all know that transactions carried out in a blockchain is been recorded in the blocks and the security framework is super fantastic, that why I highlighted earlier that mimblewimble protocol are confidential and it's totally different as to how other chains works.

Let me show how transactions are been segregated in a comprehensive example that consists of various inputs and outputs.

Let's say I want to send 1 Steem to mr Bola, this indicates a specific transaction with mr Bola, in a single or singular output.
Now mr Z, wants to send a Steem token to H, it is practically a single transaction output with mr H, in general it resulted to a single output.

Mimblewimble utilizies various transactions to appear in a single output it doesn't matter how many transactions you carry out per day all is seen in as single imput and output, when you transacts the kernels are used to determine the true ownership of the what you did transact, (it might be Crypto assets or anything else), by so doing the transac will be validated.

so transaction kernels are very important, because of your transaction are deemed invalid trust me it needs proof to be validated, why the kernels are very much important is that they holds the public keys, it wont be overemphasized the importance of public keys, also we have the mining fees and all important the signature.

In mimblewimble protocol the nodes have lesser jobs because they don't necessarily have to have an eminent implementation of the cut-through features of mimblewimble protocols, what this implies is that enough space will be accomplished because the transactions will thus be kept and stored in the ledger not in the blocks.

FEATURES OF MIMBLEWIMBLE PROTOCOL

Mimblewimble protocol has basic three main features, and this features are seen vital whenever they are made to compare with other blockchain's around, The various features are.

Anonymity; if you have been into cryptocurrency related things for a while now you will understand that Bitcoin has a public address that you can make use of to know the actual sender or receiver prior to the transaction been conducted, in this case I will say Bitcoin is pseudonymous.

In mimblewimble, transaction histories are totally eradicated that means there aren't any transaction history that can be tracked/traced on like what we have in Bitcoin, if an address is not accessible prior to a third party then bypassing it will then become very difficult and anyone that performed the transaction will be anonymous, if someth can't be tracked that means the assets can't be retrieved.

Fungibility; mimblewimble has a more proven fungibility than Bitcoin and other private coins too, the reason is that on its platform cryptocurrency exchange can be done with lesser fee and the risk of loses are eradicated totally, other Crypto coins can be made away whenever there are illegalities around then that means they are tainted.

Although coins that are tainted are been honoured by some people thought, but the disadvantage there is that the coins will depreciate in value, concluding mimblewimble untraceability nature makes it to be more fungible even more than other Crypto assets.

Scalability; I will hint more on this as the question progresses I decided to bring this up here for effective understanding, just as I said before sizes of blocks in mimblewimble is pretty smaller than what we have in Bitcoin blockchain, let's remember this caused the splitting of Bitcoin blockchain that we then began to have Bitcoin cash, hard-fork, and all the rest all in the phase to modify the limitation of blocks.

Mimblewimble have an association with coin join, and cut-through, I have hinted on this previously there has been a great achievement and advantages regarding the block size's.

Discuss in detail your understanding of Confidential Transactions (CTs).

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One motive behind the invention of Confidential transaction CTs, is to give more value to Crypto thereby improving it's system on blockchain, here information are been given a splendid understanding courtesy the reader, it helps give a clearer understanding to the reader, in this case the reader won't find it very difficult. Thus third party involved in the data exchange can only get access to the informations that are encoded but it will be very difficult to be interpreted.

The vital role that a third party can play here is to verify the message seen that pretty looks encoded and confirm it's real but interpreting it looks difficult. It's not more news that cryptographic functions make use of hash, in order to execute various data submission that can be revealed at the latter stages.

Me for example can generate a hash same as to other people too, that means anyone can galvanize a hash and it won't be identifying by any third party but who originated the hash is in exception, at this point a blinding factor has to come to fruition thus seen as a random data that signifies that the data isn't looking alike.

The hash been generated officially can be signed and any previous information that contains in the already signed information can't be changed this brings is to the formular for calculating confidential transaction's CTs.

Formular for calculating confidential transaction and further explanation.

  C(BF1+D1)+C(BF2+D2)=C(BF1+BF2,D1+D2)

Explaining some imppr parts of the equation BF, is refer to the random data, D, is referred to the transaction data, C(BF1+D1), is refered to as the direction of change, C(BF2+D2) is refered to the destina address, while C(BF1+BF2,D1+D2, is refered to the address been owned by the origin of the fund.

One exciting thing about this confidential address is that it has a footprint of hiding the specific amount been sent out during operations, the protocol gives miners the mandate to make a concise verification thereby verifying the velocity of the coin Creation.

This simply means verifying that in previous ocassion's that the coin hasn't been used in else transactions, this helps in reducing the act of double spendings, in this case two facets can verify the transaction they are the network itself and the observer's, by so doing they will know the validity of the transaction.in this case amount has to be made clear to the receiver of the transaction.

Here I will use mimblewimble protocol because it uses CTs, to create a verification process that gives user's a clear overview of the simple way to create a coin, you don't just create a coin out of nothing. This protocol also guarantee's a concise privacy courtesy the transaction or operations that are been executed.

The various nodes here has a role they play, they do not show detailed information courtesy the actual amount that are been transferred, this makes then to inquire a blind signature in order for the verification process to come to climax thereby executing extremeprivacy throughout the entire process, mimblewimble protocol is all about proving privacy for
every transactions process carried out.

Hopefully we have known what confidential transaction's are now let me illustrate how it works

Let's say mr X, wants to carry out a transaction with mr Q, let's use a Monero network, now mr X, has 7monero, and wants to give 2 Monero to mr Q, at this stage transaction is created that spends 7 monero, mr X, is spending 7 Monero sending 2 out to mr Q, and thus sending 4 back to himself, excluding the commission fee.

Now courtesy this transaction we have two parties here who can see details of this transaction that just took place and they are mr X, and mr Q, and the amount won't be showed publically nor either the address everything is seen to be in privacy very confidential, as for the network they have a role, that is validating the transfers made from mr X to mr Q,they also needs enough information's to verify the imput and output sum.

How do you think Mimblewimble Protocol can be utilized on the Bitcoin Network to enable anonymity of transactions and improve scalability?

Utilizing Mimblewimble protocol Bitcoin network to create anonimity or enable it will be great that is one crutial something that is lacking on mimblewimble protocol, in this case I will say Bitcoin is pseudonymous simply because it has an address that can trace a sender or receiver courtesy transactions been carried out so let's say mimblewimble has this trust me it will improve the models of operations.

Mimblewimble protocol if been utilized very well will improve fungibility not just giving group to anonymity, we know that mimblewimble protocol has more proven fungibility than Bitcoin itself, you will agree with me that Exchanges are been done here without any form of risk, and the transaction fees are pretty low. And there is no room for issuing tainted coins, so the privacy than comes with mimblewimble protocol is super massive.

Intense of it improving scalability, we know from my explanations that mimblewimble protocol had small block size, even smaller than what we had in Bitcoin at the earlier stages that led to disintegration of the blockchain to form Bitcoin cash, and hard-fork, so I believe if scalability is associated it will enhance the storage capability as more information and data will be stored in the block, and thus making the block size to increase in size, and the cut-join, and cut-through that alread exists on mimblewimble protocol will be executed more rapidly.

State the Pros and Cons of the Mimblewimble protocol.

Pros and cons of mimblewimble protocols is jus the same saying the good and bad of mimblewimble protocols, it's cool though let's get the ball rolling.

Pros	Cons

It assists to improving scalability, fungibility, and privacy, all this are the main pros of mimblewimble protocols	I have stated this earlier that mimblewimble Supports confidential transaction, any system that does it have a penalty to pay because they will incure lower transaction speed as a result of small block size.

We all know that Bitcoin transaction's are visible with the help of public address, but in mimblewimble only the sender and the receiver knows the accurate amount been transacted with the help of a blinding factor	mimblewimble basically relies on digital signature, hackers can easily gain access thereby making the whole system vonurable

Mimblewimble protocol has more fungible that is it can be interchangeable by so doing there won't be any losses, in mimblewimble there are no wallet address, by so doing it's very difficult to be traced	mimblewimble protocol doesn't have issues with traceability, and it's validation process seems eazy courtesy this anyone can adopt mimblewimble protocol strategy and model

One of the pros of mimblewimble protocol is scalability, trust me this protocol is even more scalable than Bitcoin itself, thus via blocks transactions doesn't occupy plenty space, at this phase cut-through process occurs	mimblewimble protocol doesn't allow public transactions by so doing it will be difficult to be adopted by companies, or film's looking for transperacy, mimblewimble protocol is totally confidential.

Discuss in detail at least a Crypto that uses the Mimblewimble protocol.

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Here I will be discussing Litecoin as a Cryptocurrency, currently LTC, have adopted and implemented mimblewimble protocol and it's rating number 9 in market capitalization. What you should understand is that Litecoin is trying to gain enough privacy, so the next question is how does this work, if you access Litecoin ledger you will understand that all blocks there are in a public domain, the consensus protocol has a role it's plays as it ensures that the total amount of imput is equivalent to that of output thereby making transactions traceable.

With mimblewimble and it's extention block called the MWEB, there role will be running adjacent to Litecoin superior blockchain, if you entail doing that what it means is that your transaction will appear private at this phase user's will have the capability to encrypt the total number of coins that they are going to issue out. Every private transactions will be dropped on the MWEB, and this merged to produce a huge transactions, this latest feature is named confidential transactions.

Upgrade on Litecoin courtesy mimblewimble have upgraded some functionalities on Litecoin, previously Litecoin doesn't offer extreme privacy and fungibility. But with the inception of mimblewimble protocol they will thus look more rigid intense of the changes it will then adopt.

CONCLUSION

From my homework assignment I did explain that mimblewimble is a blockchain based protocol that gives room a private transactions, in conjunction with a splendid security framework that is totally different courtesy what we have in other cryptocurrencies, in mimblewimble transaction address doesn't exist. Almost everything is fully confidential, mimblewimble distribution ledger is totally different from what we have elsewhere that's why some cryptocurrency like Litecoin is adopting it's approach.
I'm mimblewimble the block size is pretty small, Compared to what we have in Bitcoin blockchain, this makes mimblewimble not to store enough data on blocks thereby making it's scalability model extremely difficult.