The Mimblewimble blockchain protocol
Since the inception of blockchain technology with Bitcoin being the pioneering coin, several blockchain has been launch subsequently with interesting use cases.
Mimblewimble protocol happens to be a special blockchain protocol that came to solve the privacy problem in Bitcoin blockchain if you are the movie type you might have come across the word Mimblewimble in the Harry Potter movie it's a spell that is used against an opponent to stop them from casting a spell (tying up an opponent tongue from altering spell)
What is Mimblewimble protocol
The sole purpose of the Mimblewimble protocol is to increase users' privacy and confidence in conducting transactions.
Unlike Bitcoin where users address and amount spent on any transaction are displayed for public view in the Mimblewimble blockchain, it's quite the opposite no transaction addresses of both parties, are displayed and also amount used on each transaction are kept anonymous only the sender and receiver would be eligible to have access to such vital details.
Compare to the Bitcoin blockchain the Mimblewimble is a completely private transaction platform.
The blockchain is developed by anonymous users by the name Tom Elvis Jedusor, which is a French counterpart for Voldemort.
How it works
The blockchain protocol works with what is known as confidential transaction here a sender who owns a coin chooses a random number using what is known as blinding factors It is an encryption process that happens very fast in seconds the receiver needs to select the random number that the sender chose if the receiver chose the correct number the transaction will be valid.
In Mimblewimble, blinding factors have to be chosen by a sender. This way, it functions as a proof of ownership for the receiver, authorizing them to use the coins.
How this works is a bit complicated and requires research methods to fully understand.
Advantages of Mimblewimble
Anonymity of users; since the aim/objective of Mimblewimble protocol is to increase users' trust and confidence users' information on any transaction is not accessible by any third party.
Scalability; it's has been shown that the Mimblewimble protocol is more scalable than the bitcoin blockchain only transaction output and input are recorded on the Mimblewimble blockchain making its block size very small.
Fungibility; With the platform privacy at its core it makes it very difficult for any external user to keep track or trace other users' transactions this drastically eliminates dusting attacks.
Currently known to date since the Mimblewimble protocol depends on a digital signature quantum computer attack is known to be a major threat to the blockchain in the near future although a more advanced method of tackling this threat will be available.
With blockchain technology, we have witnessed interesting innovative ideas becoming a reality in any financial institution users' privacy is always a top priority millions of dollars are spent to secure users' information with the Mimblewimble protocol users privacy will take taken to a higher level of being secure.