How are many of the current blockchain solutions lacking privacy?
Advancement of blockchain technology has been a leading methodology and structural frameworks of today's crypto world that resoluted the dynamicity of modern cryptocurrencies.
It offers not only the complete control over the use of one's wealth but also to keep a record of each of yours transactions that ever be made by your account.
This exclusive feature of blockchain has given a revolutionary outcomes in terms of persuading a lot many investors to invest in this overwhelming world of cryptocurrencies.
In accordance with modern researches and analysis it is being estimated that modern day's cryptoworld will soon hit one billion investor.
That's really sounds good for once a while and can describe the popularity of virtual currencies in real world.
But the two major issue to be concerned regarding the blockchain are :
• One's a data enter here it get stored permanently for everlasting period of time or forever. In another words their is no temporary data generated here.
One cannot eradicate even a single string information about them and their data including transactions.
• Millions and billions of investors has dragged the unwanted attentions of inimical thieves, IT world's hackers.
Inspite of these two serious issue almost today's all cryptocurrencies are based on this which could probably tell you the reason of why there is so many fraud seemed to be happening these days.
Researches have shown that there is always the case of data leak from blockchain and OTC while making any transactions.
That's the issue to be concerned!
So!! What's the solution?!!
What is Beam?
Beam is the scalable, confidential cryptocurrency that work on MimbleWimble protocol. Beam provide user the benefits of decentralization of blockchain with the ultimate security of centralized system, giving user the ultimate control over the transaction data and it's visualization in public.
In another words investors have solo power to share or hide their transaction data, even with whom they wanted to share their information could also be controlled by the option private by default.
This is a good use case.
Second exclusive feature is its dependency and association with Mimblewimble which allow Beam to have smaller blocks than any other blockchain, giving it maximum scalability.
This leaner blockchain with fewer details of transactions allow more efficient, effective and faster tansactions in comparison with other coins that works on thicker blockchain technology and risking the security of their user making them more prone to attackers hackers and IT world's burglars.
Coins like Bitcoin which revolutionized the popularity of cryptocurrencies still lack in such kinds of security.
Researches has shown that their is always the case of data leak from blockchain and OTC while making any transactions.
That's the issue to be concerned!
Some silent features of Beam.
● Users have complete control related to privacy of their data. They decides which information will be available to whom according to their personal desire and convenience .
● Confidentiality without penalty - Transactions with beam neutralized the slow efficiency of computational in ancient blockchain. So their is no any kind of penalty related to performance and storage of excessive data, along with providing ultra Hiding features of transaction history.
● No trusted setup is required.
●" Limited emission using periodic halving with total amount of coins ~210 million"
● Not even a single string is stored about the transaction history of either sender or reciever making it complete secure and private.
● By implementation of "cut through" feature of MimbleWimble it provide superior scalability via reducing thicker blockchain into a leaner. This reduces the amount of data needed to show transaction history.
● Many transaction types like as escrow transactions, time locked, transactions atomic swaps etc are supported in beam. So, the user have no problem in association with these
● "No premine. No ICO. Backed by a treasury, emitted from every block during the first five
"Beam use Eqihash, the reason behind this is its creation happens in a such a way that does not allow easy tradeoff between processing power and memory that makes it a bit difficult to use with ASIC miners that existed at the time when it was created.Today there are dedicated ASIC miners that can mine Equihash ten times more efficient in comparison with average CPU."
What make other cryptocurrencies unsafe when it comes the matter of security?
Each Tansactions are cryptographically atomic in public blockchain which means it reveals the emergence outcomes much clearly after entering any kind output. The "transaction graph" generated to this cause also reveals a lot of information and thieves can easily analysis data of all those companies whose business model is to be monitored and hence it could be easily traced and tracked. So, there is nothing like privacy and this is a built in characteristic property of blockchain founded cryptocurrencies.
What is MimbleWimble protocol?
Published by an anonymous author it is the core principle working behind the beam that allow them to provide user exemplary ultra security and faster transaction by leaning their blockchain.
Mimblewimble Two special feature -
(a) Confidential Transactions
(a)" Confidential Transactions use cryptographic commitment scheme with two basic properties: hiding and binding. MimbleWimble works on a well known commitment scheme called Pedersen Commitment that
attain this using Elliptic Curve Cryptography and is of the form
C = r * G + v * H
Where r is a blinding factor, a secret key hiding the real value v and G and H are generator."
source beam position paper
What is called Blinding and Hiding?
One has the power to generate a key for any individual with whom he desires to share his transaction information via which the other person as a reciever can make sure the sender's commitment is valid and this is called blinding while no one can know what was before that particular key after it is being received and this particular property is called hiding.
(b) Transaction Cut – Through
"Each input and output of a transaction includes a linear combination of two factors: an actual
value of the transaction and a blinding factor. In order to transfer ownership of a UTXO
(Unspent Transaction Output) a sender needs to reveal its value and blinding factor to the
receiver, which in turn needs to create a new output commitment using a different blinding
factor, known only to him. "
(* Source beam and MimbleWimble paper)
How smaller blocks increase performance ?
Merging down of all intermediate output of a block, transactions and an entire chain results into a new distinct kind of system that only needs to store the current UTXO state, instead of entire transaction history. Storage of the headers of the previous blocks is now sufficient to hold the proof of validity
of previous history and work proof.
(using a structure called a Merkle tree)
This thereby show that the ownership of the UTXO is a distinct value and a unique blinding
factor and hence there is no need to store any addresses in the blockchain now. So, after any kind of transaction, either online or using any other secure mechanism, no personal information can be extracted from the blockchain and this way data will be safe from hackers, thief and burglars.
That's why we need privacy for such store value cryptocurrencies to safeguard ourselves.
Mr Sunil ( changed name ) thought to invest in gold, he had a desire to wear a costume completely made up of gold.
He ordered this but this news spreaded like a forest fire in the countries via media. Within one week it was stolen.
Taking this incident his brother suggested him about beam where your data will be stored and no one will know this.
A steemit user @saun participated in a contest. He won a second last prize after 5 days and later that day he recieved a flag from a naughty steemian who had multiple accounts and loaned some steempower from steem Inc.
And some by following @contestbot, misusing its gift.
The real reason behind was the blockchain which provide transparency to the user. If he didn't seen my transaction he may never come to know about me.
The user @saun decided that in near future if any cryptocurrencies that he will choose to invest will be beam.
My video presentation:
This is my entry for the contest @originalworks
All information and image source: