Challenges in cryptography // Anonymising transactions and improving scalability

in hive-175254 •  3 years ago 

Introduction

As I mentioned in the previous post, the main feature of the standard protocols linked to the Bitcoin network generation is that they mostly keep records of each financial transaction in a successive and orderly manner by executing actions based on the proof-of-work hashcash algorithm, which is excessive information that affects or slows down the fast execution of transactions.

In contrast to the Bitcoin network model, platforms using the MimbleWimble protocol are based on elliptic curve cryptography (ECC) and are characterised by the fact that they do not keep records and addresses of individual user transactions, but instead merge and record movements in a transaction pool.

Source / Author: Rebcenter-moscow, 2017

It should be emphasised that the MimbleWimble protocol executes these actions based on discrete logarithms, which serve to maintain the anonymity of the transactions, hiding the sender address, receiver address and the amount of the executed operation, in this way, the MimbleWimble protocol allows saving storage space, which means little information that favours the fast execution of the transactions.

Confidential Transactions (CTs)

Confidential Transactions (CTs) is one of the existing cryptographic protocols that uses the Mimblewimble protocol in combination to achieve transaction privacy, anonymity and fungibility.

In addition, it should be noted that Confidential Transactions are a successful cryptographic protocol that has been implemented without major problems to date, mainly with the aim of improving privacy standards for users and the multiple networks that tend to use alternative cryptocurrencies.

According to the arguments I have mentioned, confidential transactions are a kind of superior privacy protocol in contrast to standard protocols, basically because, even though transactions can be verified and validated within a given network, neither the sender's address, the receiver's address, nor the exact amount of each transaction can be reflected individually.

There is sufficient coinciding information suggesting that in order to achieve the desired mass adoption of blockchain technology, it is necessary to implement new protocols that have the capacity to be combined with existing ones, specifically that they can be combined with the protocol used by the Bitcoin network.

SOURCES CONSULTED

Jie Yee Ong What Is Mimblewimble and How Does It Work?. Link
Link

OBSERVATION:

The cover image was designed by the author: @lupafilotaxia, incorporating image background: Source / Author: TamimTaban, 2021

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hello @lupafilotaxia,
I personally do not believe that currencies should be anonymous, this characteristic of currencies makes people seek to launder money that comes from illicit acts, that is why I do not believe that currencies should be anonymous, from what I understand what is sought with the implementation of currencies is to ensure that people who do not have access to global banking can make transfers quickly and at low cost, ultimately the strength of currencies is to allow access to the global economy to everyone no matter where you are.

Hi @trabajosdelsiglo

I agree with your point of view, but in a way look at how as institutions participate, needs are created to bend the system, it is the typical behaviour of mankind, to always do the opposite.

Best regards, be well.

Hello @lupafilotaxia, So it can be said that MimbleWimble is a protocol that leaves a trace and it is impossible to determine the records, being this protected, it is very likely that in some countries with regulations on crypto assets this could be prohibited, although it has the great advantage of keeping the information with a lot of discretion

Hi @tocho2

And look how things are, it turns out that this kind of protocols arise precisely because some US institutions have asked for it, even their security agencies have already installed protocols based on MimbleWimble, the world upside down.

Best regards, be well.

Greetings my friend. Confidential transactions are very necessary to increase the privacy of operations in blockchain networks, something very necessary because many people want to have the anonymity of their transactions, although it is also something that may not be to the liking of the authorities on the issue that would help to hide illicit activities.

Hello @emiliomoron

In a way that's how many US institutions see it, mainly security agencies have already installed protocols based on MimbleWimble, the objective as you mention is to guarantee confidential transactions.

Best regards, be well.

@tipu curate 5

Definitely the cryptographic environment continues to become increasingly efficient and more prone to its generalization and scalability, the faster and cheaper (in energy terms) the closer it is to displacing centralized systems in terms of big data processing.

Excellent publication friend @lupafilotaxia

Hello @karupanocitizen

Correct increasingly efficient and convenient for sectors previously reluctant to participate in blockchain. It just keeps getting better and better.

Best regards, be well.