Hello everyone hope so you all are extremely well as today i will be submitting my homework for Professor @fredquantum and it was all together a very informative homework for sure.

Question 1:

In detail, explain your understanding of the Mimblewimble protocol.

Answer 1:

The people those who have watched Harry Potter can easily relate themselves with the name of this Protocol as the name was taken from it's novel for me the name sounds like a bee name which is quite funny.

In the year 2016 when all the transaction on blockchain was visible a person or a group of anonymous person called Tom Elvis Jedusor launched there white paper for this protocol.

Earlier anyone can view the transaction happening on the blockchain but after the application of Mimblewimble Protocol it was not possible for anyone outside the sender and recipient to view it making it very efficient blockchain in terms of storing the data.

Mimblewimble Protocol best deals with the privacy and scalability issues as they tend to hide the transaction from outsiders also unnecessary transaction are eliminated making the block size small and effective for storage.

Different types of cryptographic protocol are being used to maintain the anonymity some of them are:

• Confidential Transactions.
• Elliptic Curve Cryptography.

Mimblewimble Protocol uses the cryptographic protocol called Elliptic Curve Cryptography. Unique algorithms are generated and then plotted on the graph to make proper identification and creation of private keys for every individual transactions making it extremely safe.

Question 2:

Discuss in detail how the Mimblewimble blockchain protocol works.

Answer 2:

The main work of Mimblewimble Protocol is to provide privacy to the transaction details and for understanding it better we will take a small example which will help us understand it better.

We will take 4 people for this example Mr.A, Mr.B, Mr.C and Mr.D

At first Mr.A receive 500 steem from Mr.B and 200 steem from Mr.C seperately.

Now Mr.A transfers his 700 steem to Mr.D so now if Mr.D want to know from where did Mr.A got all these steem so he will not be able to trace it as he can only see the details of transaction in which he is involved and not the transaction which happened with previous users.

This is the reason why Mimblewimble Protocol is considered very safe in terms of transaction security as no one outside the transaction can view it as it stays anonymous.

Question 3:

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

Answer 3:

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As discussed earlier Confidential Transactions are the most important feature of the Mimblewimble Protocol. It keeps the transaction confidential and free from the access of any third party only the sender and receiver can access it.

For the confidentiality of the transaction UTXO model gets replaced by the multi signature model which helps in keeping the transaction confidential.

Pedersen Commitment scheme is used in which no use of public address takes place despite of it a secret number is used by the sender and the receiver to complete the transaction. As the secret number is only known to the parties involved in the transaction so it is next to impossible for any third person to access it.

So as far as i have observed the Confidential Transaction is very important these days as it helps in building trust in a project and as the anonymity is maintained so it leads to a more confidence user base for that project.

Question 4:

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

Answer 4:

Transactions made on the blockchain are visible to everyone and if anyone wants to know the complete information about a particular address then he can do it easily making it not at all safe.

But if we will integrate the Mimblewimble Protocol with the Bitcoin Network as side chain then it will boost up the anonymity and scalability of the transaction. Now without even disclosing the address users will be able to make transactions among them which will keep the transaction away from the world hence keeping the anonymity of the transaction.

As the Mimblewimble Protocol is very fast so it will be very beneficial for all the users in terms of the speed and the fees too as for validating the current transaction huge amount of cost is incurred but on Mimblewimble the transaction cost is very low making it very cost efficient.

Anyone can get the complete details of the bitcoin transaction on the Blockchain.com which is really very bad as it completely ends the privacy of the user and transaction.

As the Mimblewimble Protocol is really very fast in compare to Bitcoin so with the integration of it will also become scalable with the increase in speed.

Question 5:

State the Pros and Cons of the Mimblewimble protocol.

Answer 5:

Pros of Mimblewimble Protocol:

• Data is stored in a compressed form making is small in size and as the resources used are also less making it really very fast in transaction.
• As no address is required for transaction so making it completely anonymous and safe.
• There is no traceability of transaction nor the address making the individual identity intact in its place.
• Fungibility As no one can trace you so there will no one to blacklist you which will help in keeping the value of the coin intact.

Cons of Mimblewimble Protocol:

• This Protocol is in the development phase making it hard for the majority to adopt to it.
• It is having compatibility issues with other blockchains.
• For the completion of transaction both the sender and receiver must be online to validate it and complete it successfully.

Question 6:

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

Answer 6:

The Cryptocurrency which i will discuss is Beam

Beam is a world famous defi project and as Mimblewimble Protocol is integrated on other blockchains so in the same way it has been integrated on Beam so it runs on two blockchain one being Mimblewimble.

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I still remember i had written articles for Beamon the steemit platform way back in 2018 as it was founded in March 2018 by Alex Romanov, Alexander Zaidelson and Amir Aaronson.

When we transact through Beam then we don't have to worry about the privacy as our address is not at all revealed and only if we want then we can reveal it to others or else no can know about it.

In comparison with Bitcoin it can carry upto 17 transaction per second though in crypto world it is not much but based on the privacy it is really great.

As Proff Of Work mining algorithm is been used in Beam so making it really effective in managing large amount of datas unlike bitcoin which requires huge investment in the GPU and other mining elements making it really very cost effective mining for almost everyone.

It is really a great project with almost listing on the all the major exchanges.

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With such great features it has a long way to go in the long run still the scalability being the biggest issue with the growing demand.

Conclusion

It was an great lecture by professor @fredquantum as it was one of the easiest explanation i ever had hats off to you i really got to know a lot as with all the challenges of bitcoin if Mimblewimble Protocol get Integrated in it then definitely it can make wonders to it by securing the data.

In my study i do got the advantage of Beam as i was familiar with it at the time it was launched as i had written articles for them which really made it very easy for me.

As privacy being such an important factor so with the implementation of Mimblewimble it will create wonders even now there are many private coins with extreme amount of privacy and security.

All together i am really happy with the lecture and homework as it helped me gain great knowledge with ease.

Thanks friends have a great day ahead.