Mimblewimble Protocol - Crypto Academy / S4W2 | Homework Post for Professor @fredquantum

지난달
Hello Professor @fredquantum. I read your lecture about the topic Mimblewimble protocol and now I am doing my homework post given by you.

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1: In detail, explain your understanding of the Mimblewimble protocol


About the name of the Mimblewimble protocol the interesting fact is that it got its name from the famous movie Harry Potter in which the mimblewimble spell prevent someone from spilling a secret. The Mimblewimble protocol is a blockchain protocol in which the transactions are allowed to be completely private. The Mimblewimble protocol has a purpose that is to give no information about the transaction done on the blockchain.

This protocol was created on July 16, 2016 by Tom Elvis Jedusor which interprets to a name from Harry Potter Voldermort. The first project of the application of Mimblewimble protocol is 'Grin'. The Mimblewimble protocol has made so that the privacy, fungibility and scalability of blockchains can be protected.

The transactions are made private by recipient of a transaction randomly selecting a blinding factors range which are provided by the sender of the transaction which enhances scalability and privacy and security.

A cryptographic method Coinjoin is used by the Mimblewimble protocol by which the senders of the multiple transactions combine their transactions into one transaction. This blockchain protocol also uses the ECC (Elliptic Curve Cryptography). It is a cryptographic approach based and it based on discrete logarithms. The MW protocol removes the addresses of receivers and senders and also the amount of transaction and so, it makes impossible to trace the transaction. This takes the privacy to a higher level. Only those who involved in the transaction can see details of the transactions that are done.

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2: Discuss in detail how the Mimblewimble blockchain protocol works.


In the previous question, I have mentioned already that the Mimblewimble Blockchain protocol prevents from any kind of tracing which enhances the scalability & privacy. The Mimblewimble protocol relies on Elliptic Curve Cryptography also called as ECC, which is based on discrete logarithms. In this, "discrete" term is referring to a mathematical branch which revolves around studying a set of discrete values of mathematics.

In the case of mathematics, logarithms are basically the opposite of multiplication. The countless discrete logarithm equations are performed by ECC and then, these are plotted onto a graph to take down the private key of any transaction related to cryptocurrency.

The Mimblewimble blockchain protocol transactions come from the development of Confidential Transactions. These transactions allow the users so that they can encrypt the amount of coins they are sending and it hides the information from any ovserver from outside. So when the transactions are verified in Mimblewimble, only the corresponding firms are observed without particular details.

The transactions under this scheme is validated as long as the number of entries and number of exits become equal to each other which means there difference is equal to zero.

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


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The Confidential Transactions (CT) are introduced by adam in the year 2013 and the theory was further elaborated by a developer in the same year. The Confidential Transaction is a solution of the problems of privacy that are observed within the bitcoin network.

CT keeps the transaction and the type of assets which are transferred and are visible only to those they choose to reveal the binding key. Only the involved nodes are the one that can decrypt and encrypt the full transaction.

Confidential Transactions allow certain information to be written in which, without any major difficulties the parties can read. Using, the confidential Transaction protocol, the on-chain transactions can be verified and validated and this improves the privacy of on-chain transactions much.

A Pedersen's Commitment (PC) In the previous question, I have mentioned already that the Mimblewimble Blockchain protocol prevents from any kind of tracing which enhances the scalability & privacy. The Mimblewimble protocol relies on Elliptic Curve Cryptography also called as ECC, which is based on discrete logarithms. In this, "discrete" term is referring to a mathematical branch which revolves around studying a set of discrete values of mathematics.

In the case of mathematics, logarithms are basically the opposite of multiplication. The countless discrete logarithm equations are performed by ECC and then, these are plotted onto a graph to take down the private key of any transaction related to cryptocurrency.

The Mimblewimble blockchain protocol transactions come from the development of Confidential Transactions. These transactions allow the users so that they can encrypt the amount of coins they are sending and it hides the information from any ovserver from outside. So when the transactions are verified in Mimblewimble, only the corresponding firms are observed without particular details.

The transactions under this scheme is validated as long as the number of entries and number of exits become equal to each other which means there difference is equal to zero.

A pederson algorithm is used by the Confidential Transactions. PC implement blind signatures instead of using addresses for transactions and so the users who involve in transfer, use multi signatures to approve a specific transaction. The formulation used for the Pedersen commitment is given by:

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

Here;
'BF' refers to the Blinding factor, D refers to transaction data, C(BF1 + D1) is the direction of change , C(BF2 + D2) is the address of destination and, C(BF1 + BF2, D1 + D2) is address of funds origination

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


The MW protocol can be utilized on the Bitcoin blockchain ecosystem as a second layer that runs simultaneously with the bitcoin blockchain network. The network nodes can either choose to use the side-chain Mimblewimble protocol or to route on-chain transactions from sender to receiver.

The use of this alternative option will definitely reduce the load on network and also reduce the scalability problem of the bitcoin blockchain.

In Bitcoin network transaction, after the transaction the network broadcast the addresses of senders and receivers, the amount and time of transaction and it is visible to every node which is connected.

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I have selected a block 701097 from the given blocks and then I saw the transaction details that are done on the block.

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Blockchain explorer shows the time and amount of the Bitcoin sent and the addresses of the senders and receivers.

As I mentioned already that the Mimblewimble protocol uses the CoinJoin technology which combines several transactions with the information and this makes that you can not know the addresses of individuals.

The blocks' size is greatly reduced by it as blocks do not store the IDs and transaction data which enhances the privacy. The block of mimblewimble protocol provides very litttle and limited data to ensure privacy which is shown below.

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In the above image, you can see that there are many blocks. If I choose any one block, suppose I chose the block 953687.

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Now, You can see that there is a very little information about the block and there is no data about the amount transferred.

Therefore the Mimblewimble protocol can be added as a side-chain with the bitcoin blockchain and can be utilized by bitcoin blockchain in this way. This improves the scalability & complete anonymity of the Bitcoin blockchain.

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5: State the Pros and Cons of the Mimblewimble protocol.


- PROS -

A) SIZE IS SMALL:

The MW Blockchain protocol allows only the important and limited data transaction. By this the block size becomes smaller than Bitcoin and makes the transactions more faster due to the compression of data.

B) SCALABILITY:

The Mimblewimble protocol has became much faster due to implementation of technology like CoinJoin, because the unnecessary data is eliminated. The payment system is also and became fast.

C) FUNGIBLE:

In the Mimblewimble protocol, the coins exchange with any other coin of same units in the exchanging platform. With the help of Mimblewimble protocol, the coins that are termed as illegal can be exchanged no tracement is there.

- CONS -

A) PROCESSING TIME:

The time of transaction is increased due to the increased privacy of protocol. The unnecessary data and redundant transactions are eliminated and blocks are validated which increases the time of process.

B) TRANSACTION THROUGHPUT:

The MW protocol uses the confidential protocol which reduces the transaction throughput. The transactions that are done through private on Confidential Transaction blockchains are slow.

C) IMPLEMENTATION:

The mimblewimble protocol cannot be easily implemented on other networks because of the mathematical algorithm and structure of the protocol.

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


There are different cryptos that uses the Mimblewimble protocol. Now, I am discussing about Grin.

GRIN:

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Coinmarketcap

Grin is the first token where the Mimblewimble protocol is applied. The grin token has ranked #675. The current market price of grim is $0.3407 and the current market Capitalization is $28,67,390.

Grin is a private, simple and scalable cryptocurrency which was launched in 2019. The Grin claimed that there is no one who can claim to have centralised rights over it as it has not developed by a single company and so . Grin provides a solution to thousands of people who are currently suffering from financial monopoly and the destructive monetary system.

The emission rate that grin has is 1 per second. Grin is autonomous & not dependent on creators. The Grin itself behind the MW Blockchain protocol is a pure idea. The technology and design of grin allow transactions to be made confidently.

The grin blind transaction and this made grin a fungible, private and secured token. The token of Grin uses proof-of-work (POW) consensus mechanism. Its blocks the transaction details are encrypted with the blinding key of Confidential Transaction which remains publicly invisible.

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Conclusion


Mimblewimble protocol is a blockchain protocol in which the transactions are completely private. The unnecessary data data and reduntat is removed which enhance the privacy. The Mimblewimble protocol can be adopted by the bitcoin ecosystem as a side-chain which runs with Bitcoin network.

From the lecture of professor @fredquantum, I have got much information. The lecture has proven much beneficial for me as I got much knowlegde and I am thankful to professor @fredquantum for giving this wonderful lecture.

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Dear @monz122. Thanks for attending the Steemit Crypto Academy Season 4 Week 2. Let's take a look at the breakdown of your performance below.

Grading Basis Score
Content Structure 1.5/2
Originality 1.5/2
Clarity of Language 1/2
Compliance with the Topic 2/2
Quality of Analysis 1/2
Total 7/10

Feedback/Suggestions

  • Your content is quite okay but you should improve on your content structure, that would enhance your presentation.

  • You missed out on proper analysis of many features of Mimblewimble protocol.

  • Your performance is good, kindly improve on your analysis subsequently.

Total| 7/10