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Hello everyone,
I'm very happy to participate in this week two classes of the season four of the cryptoacademy. I want to official welcome one of esteemed crypto-professor @fredquantum for the meaningful Lecture with clear and understanding illustrations.

This post will be based on the following questions/tasks given by our crypto-professor as it is stated below:

• IN DETAILS, EXPLAIN YOUR UNDERSTANDING OF MIMBLEWIMBLE PROTOCOL?
• EXPLAIN IN DETAIL HOW THE MIMBLEWIMBLE PROTOCOL WORKS?
• EXPLAIN IN DETAIL YOUR UNDERSTANDING OF CONFIDENTIAL TRANSACTION?
• DO YOU THINK THAT MIMBLEWIMBLE PROTOCOL CAN BE UTILITIED ON BITCOIN NETWORK TO IMPROVE THE ANONYMITY OF TRANSACTION AND SCALABILITY
• STATE THE PROS AND CONS OF THE MIMBLEWIMBLE PROTOCOL
• DISCUSS IN DETAIL, A CRYPTO THAT'S USING THE MIMBLEWIMBLE PROTOCOL

INTRODUCTION

Blockchain technology have enhances a lot of human activities. These activities are very vital for the survival of humanity. These activities includes Financial sectors, entertainment, educational, religious etc. A vital "touch" of the Blockchain technology improves them positively.

As the financial transactions in the world of cryptocurrencies are improving and advancing, it's merits are rigidly appreciated while demerits noticed are IMPROVED to be better. Bitcoin network is the pacesetter of networks of cryptocurrencies with huge dominance and Advantages over any known means of Financial transactions. But there's a "bug" or demerits noticed in this important network. They includes the absence of privacy and scalability problem. Other new network like mimblewimble protocol have show a huge advancement over those demerits/limitations. First of all, What's this MIMBLEWIMBLE PROTOCOL?

Mimblewimble protocol improves the privacy of financial transactions by removing the addresses and making all vital transaction data look like random data to Public while visible to the participants unlike the bitcoin network where the public can view the addresses, timestamps, fees, and other transaction data of every transactions done till it's Genesis block.

The term "Mimblewimble" claimed to be English grammar but does not have any meaning. It was used in Harry Potter movie as it stands for a spell that hideaway certain facts. The developer of this protocol adapted that idea to promote privacy in the project by obscuring certain facts from the Public eyes while it is very open to those individuals involved.

This protocol was initiated from the document released in July 2016 by pseudonym person or group of people named TOM ELVIS JEDUSOR which is a name translated Voldermort from that same Harry Potter's movie. This document have some limitations and questions not answered and blockstream researcher Andrew Poelstra study and enhanced the original concept with the release of his improved whitepaper for this protocol on October 2016, after the hacking of over $760 millions experienced by Bitfinex of August 2016, which is the largest Financial loss of cryptocurrencies asset till date.

Mimblewimble protocol validates all the transactions as huge single block of data than as a combination of many transaction. As the block of data is verified and validated without giving specific details to the individual transactions involved thereby keeping those participant's data private with improved scalability.

Cryptographically, Mimblewimble protocol achieve "privacy" of financial transactions by employing the Cryptographic functions of Elliptic curve cryptography and confidential transaction approach that's proposed by ADAM BACK In 2013 and implemented by GREG MAXWELL AND PIETER WULIE. These Cryptographic functions keeps the transactions private and discreetly as they are based on discrete logarithmic sequence with more storing spaces that promotes scalability.

EXPLAIN IN DETAIL HOW THE MIMBLEWIMBLE PROTOCOL WORKS?

Ada receives two cryptos from John and James each. Having "4" coins now, Ada now send them to Andrew.

In the scenerio above,Each of these transactions are viewed as separate and single order and will be verified separately thereby slowing down the transaction speed. In every other networks, the addresses, timestamps, fees and other transaction details of transactions will be visible for everyone. For instance, on bitcoin network, all transactions and their details can be viewed by everyone via blockchain explorer. The presence of those transaction details and validation of those transaction orders separately contributes to poor scalability of those network like bitcoin network etc.

WHILE

Mimblewimble protocol eliminates redundant transactions as Andrew will never know of the previous transactions of Ada and same is the public. A single chain of transaction of Ada and Andrew will be confirmed only by Ada and Andrew. Never made know to the public thereby promoting it's privacy. As all the transactions are compiled as a single transaction order in respective of definite and single, valid transactions when verification. Thus, promoting it's scalability.

EXPLAIN IN DETAIL YOUR UNDERSTANDING OF CONFIDENTIAL TRANSACTION?

Confidential transaction (CT) was proposed by ADAM BACK In 2013 and implemented by GREG MAXWELL AND PIETER WULIE. It is a privacy tool that hide the various transaction details over the networks.

Within this scheme, the details of the transaction are encrypted and not visible for everyone . But can be viewed by the transaction parties with a binding keys for decrypting those details without a cost.

However, the confidential transaction process eliminate the scripting system of the networks like bitcoin and obfuscating the details of either the input/sender or the output/receiver with a blinding scheme thereby promoting it's confidentiality and privacy from the Public but visibile to the participants with blinding key.

The essence of this scheme is very vital as insufficient Financial privacy have leads to serious Security and privacy losses for both commercial and private transactions. Huge and "fat" wallets are targeted seriously by hackers as they are seen. But as they are obscured, their assets and data are highly protected.

However, Since the default blinding coverage at the precision level is currently at 52 bits which is inherited from the bitcoin network. The transactions details that's larger than the default blinding coverage will be visible for the Public. But splitting such a very large transaction will be helpful to redeem the situation of privacy leaking. There is a limitation over the confidential transactions.

DO YOU THINK THAT MIMBLEWIMBLE PROTOCOL CAN BE UTILITIED ON BITCOIN NETWORK TO IMPROVE THE ANONYMITY OF TRANSACTION AND SCALABILITY

Bitcoin network can adopt the mimblewimble protocol as a second layer or side chain that will run simultaneously with it's Blockchain to improve it's scalability and privacy.

With the confidential transaction and CoJoin in the mimblewimble protocol as a side chain, the Blockchain networks will be able to eliminate the scripting system where transaction details that cog the wheel of it's scalability with much data are removed to improve the transaction speed and privacy.

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The integration of the mimblewimble protocol with bitcoin network can adopt the blinding precision level of which the participants of transaction can access the details of their transactions with blinding key as the encryption of those data will make invisible to the public as shown below:
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The Incorporation of the mimblewimble protocol with bitcoin network can be possible as both use Proof of work as their consensus mechanism as several miners will verify its blocks of data as huge/compiled single transaction order, not as a combination of many in order to improve it's scalability problem.

Litecoin have been working on how to adopt the mimblewimble protocol in it's ecosystem to improve it's privacy and scalability so can bitcoin network to complement it's lighting system in the future.

STATE THE PROS AND CONS OF THE MIMBLEWIMBLE PROTOCOL

There are many improvement brought into the Blockchain technology by the mimblewimble protocol as well as it's limitations. Let's discuss some of it's merits;

1) BLOCKCHAIN SIZE

Mimblewimble protocol allow for only important transaction data thereby reducing it's block size. As the data are compressed, the node can verify the data very faster with less resources and new nodes can easily download and Incorporated into the network.

2) Scalability

The payment system with the mimblewimble protocol have been improved and faster due to its higher scalability or transaction speed. The verification process of it's transaction blocks are faster and efficient due to its size and elimination of redundant and unnecessary data in their block.

3) PRIVACY

Keeping those transactions private from the Public have improve the reliability of the system as theivies targets high value accounts and transactions of both commercial and private ones. This blinding coverage have protected the system.

4) FUNGIBILITY

On private systems like Mimblewimble protocol,
Coins can be interchangeably and with any other coin of same units in the exchange platforms which can not be obtainable in some protocols.

LIMITATIONS OF MIMBLEWIMBLE PROTOCOL

INCREASED PROCESSING TIME

The confidential transaction tend to increase the processing time then non-private system based on the more the privacy, the lower transaction per second. The validation of blocks and processes of elimination of redundant transactions Increase the time.

PRIVACY LIMIT

As earlier stated, any transaction above the default blinding coverage of 52 bits can be leaked publicly. Although, all the transaction are within this precision level but improvement on this aspect will be important for larger and futuristic transactions.

DISCUSS IN DETAIL, A CRYPTO THAT'S USING THE MIMBLEWIMBLE PROTOCOL

GRIN

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GRIN is the first privacy coin where the Mimblewimble protocol was applied. It is a "Technologically superior ghost coin" which is ranked #662 and market price of $0.3571 currently on the coin market cap.

As a private coin, Grin coin does not have amount and addresses but can be distributed among the various nodes. It can be relayed among those nodes before it will be widely broadcast on its networks. It hides it's origins of it's transactions and aggregated trivially.

GRIN Coin is a decentralized coin as it not be controlled by any central authority and shared fairly with the emission of 1 GRIN per second.

GRIN Coin uses proof of work (POW) consensus mechanism to validate it's blocks and encrypts it's transaction details with blinding key of confidential transaction for both transaction parties Which remains invisible to the public.

On January 15th, 2019, Grin coin was launched and still pretty young project with great prospects.

CONCLUSION

Mimblewimble protocol is the Blockchain network that enhance privacy and confidential transaction. It hides the transaction details aways from those that not involved in the transaction process and maintain a great transaction speed within it's network as redundant and off-chain transactions are treated specially and separately thereby promoting it's scalability prowess.

Bitcoin network can adopt Mimblewimble protocol as its side chain or two later to improve it's scalability and privacy.

Grin Coin is a privacy coin backed on the mimblewimble protocol with great improvement that will enhances the protection experienced in the world of cryptocurrencies.