S12W3 : Understanding Mimblewimble Protocol || Comprender el protocolo Mimblewimble

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Hopefully everyone will be great here and enjoying the very interesting theme of Steemit Engagement Challenge S12-W3. After receiving the participants entries on this given theme. I developed interest to get acknowledgement about this new topic and shared my own perspective about you all after doing research on it. Hopefully my participation will be meaningful too.

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Use your own words to show your understanding of the Mimblewimble protocol.

The Mimblewimble protocol is a well organized and in practice technique in blockchain system with a privacy focus that was first presented in a whitepaper by an unidentified developer in 2016 under the name Tom Elvis Jedusor It is lunched in the context to address privacy and scaling problems in blockchain networks, such as those used by crypto users for example, Bitcoin one of the trading coins in the digital marketing.

Accordingly to the researched on Mimblewimble , I have come to know that in practice one of the Mimblewimble's best-known applications is Grin This is Blockchain Cryptocurrency that seeks to offer secure and scalable transactions in an organized and effective way. Besides of that Beam is another approach that emphasizes privacy and scalability.

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Explain how the Mimblewimble protocol works, giving an illustrative example.

The Mimblewimble protocol is intended to increase blockchain transactions' scalability and privacy by using organized and secure techniques for maintaining the integrity and security of Blockchain. Here are the some points which reflects the working of Mimblewimble protocol in save and secure way.

Discreet Transactions

Cryptographic methods are used to keep transaction amounts in private way. Transactions are represented as liabilities to Pedersen, demonstrating that the sum of the inputs equals the sum of the outputs, without disclosing the exact amounts.

Construction of Transactions

Users create transactions by defining the inputs they want to use and creating new outputs for the recipients they desire.

Combined CoinJoin and Transactions

A privacy protection method called CoinJoin allows multiple transactions to be combined into a single transaction. By making it difficult to discern which inputs correlate with which outputs, this aggregation improves privacy.

Illustrative example of three Friends

Let's say Jan, Dani, and Jack want to transact with each other using Mimblewimble.
Dani has three coins, Jack has two coins, and Jan has five coins.
They decide to group their transactions into one.

The inputs are Jan's five coins, Dani's three coins, and Jack's two coins.
Creating outputs for new ownership. Consider the scenario where Jan wants to give 4 coins to Dani, 2 coins to Jack, and 1 coin back to Jan.

Jan, Dani and Jack's transactions are combined into one transaction. This increases anonymity by making it impossible to tell which coins belong to which user.

So the result we can concluded from this example, The blockchain's smaller size enhances scalability and privacy by concealing transaction amounts and participants, enhancing user privacy and making it difficult for outside observers to track transactions.

Do you think the Mimblewimble protocol could be used on the Steem blockchain to improve scalability and privacy

Although incorporating the Mimblewimble protocol into the Steem blockchain can improve scalability and privacy, it is a challenging process that involves technological, social, and legal issues. This would require careful planning, community support and sufficient resources for development to be done successfully. The priorities of the Steem community and the goals of the development teams will ultimately decide whether or not to pursue such an integration.Hece can say that Scalability and privacy advantages of integrating the Mimblewimble protocol into the Steem blockchain may be possible.

Discuss in detail a crypto (its blockchain) that uses the Mimblewimble protocol.

Certainly! Let's talk about the cryptocurrency Grin, which makes use of the Mimblewimble technology to save and secure transactions in confidential way. I have selected Crypto Grin because of recently launched in January 2019 and also one of the most well-known applications of the Mimblewimble protocol, it is intended to be private, scalable, and lightweight as well. Some of important specifications which highlights the significance of Mimblewimble Protocol in Crypto World.

• The Mimblewimble protocol, which was created to enhance the anonymity and scalability of blockchain transactions, Serves as the foundation for Grin's technology in an organized and save way.

• Grin offers strong privacy features. Which incorporates confidential transactions and hide transaction amounts from publicity. The transaction technique is further obscured by using CoinJoin to merge transactions.

• An other important feature is that Mimblewimble protocol reduces blockchain bloat and increases scalability. For this, Cut-through technique is used, which enables the trimming of obsolete and unused transaction outputs in confidential way.

So, Grin uses the Mimblewimble protocol for privacy and scalability, offering unique features and an intriguing alternative to traditional cryptocurrencies like Bitcoin despite challenges in adoption and network security.

Mention the advantages and disadvantages of the Mimblewimble protocol.

The Mimblewimble protocol is an original and confidential approach in blockchain technology that has both benefits and drawbacks. The following are some of the main benefits and drawbacks of using Mimblewimble.

Advantages

• Mimblewimble enhances transaction privacy by concealing transaction amounts and preventing outside observers from tracking transactions, appealing to users who value confidentiality in financial dealings.

• Mimblewimble's design reduces blockchain bloat by cutting through spent transaction outputs, improving transaction efficiency, scalability, and potential faster growth.

• Mimblewimble utilizes CoinJoin to consolidate multiple transactions, reducing blockchain inputs and outputs, increasing privacy, and reducing transaction costs.

Disdvantages

• While enhanced privacy is an advantage, it can be a disadvantage in some situations, especially when it comes to compliance. Anti-Money Laundering (AML) and know-your-customer (KYC) targets may be concerned about privacy features by authorities seeking transparent financial transactions.

• It may be difficult to incorporate the Mimblewimble protocol into current blockchains or create new cryptocurrencies based on it. Significant development work, community support, and careful analysis of any potential regulatory implications are necessary.

• Mimblewimble's greater privacy features may appeal to people who have bad intents, such tax evaders and money launderers. Projects using the technique may be subject to more scrutiny and regulatory issues as a result.

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Lesson Learnt from Today Participation In S12-W3

The integration of Mimblewimble protocol into Steem blockchain could enhance scalability and privacy, but requires careful planning, community support, and sufficient development resources, ultimately influenced by Steem community priorities.

Mimblewimble, a privacy-focused protocol, offers scalability, simplicity, and scalability, but faces challenges in smart contract support, acceptance, transparency, and potential abuse, depending on the project's objectives.

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^{I would like to invite my Steemit fellows @suboohi @waterjoe @tocho2 @msharif for taking part in an very interesting and important theme of engagement challenge. Thanks for valuable feedback and appreciation.}

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Kind Regards 💐

@uzma4882