Mimblewimble is a protocol that aims to revolutionize the cryptocurrency security system. This is possible because this protocol offers users confidential transactions to protect privacy.
This protocol is a blockchain-type design that uses transactions in which the address and value of the transaction is hidden, providing a high level of security to users.
In short, it is an alternative Proof of Work (PoW) implementation that enhances privacy on the blockchain by providing security and anonymity to its users.
Remember that one of the problems faced by Bitcoin, Ethereum or other cryptocurrencies is that the cryptocurrency needed to increase users’ security is stored in the blockchain, taking up a lot of space and making it heavier and less scalable.
Thanks to Mimblewimble all this data is not recorded within the blockchain as individual but grouped together in one big transaction. This allows the network significant savings in terms of storage space.
Mimblewimble’s beginnings date back to 2016 when Bitcoin developer chat room user Tom Elvis Jedusor introduced the project to the network. The first paper presented on this design detailed a protocol that offered increased security and scalability to the blockchain.
Although this project was based on the Bitcoin network and shared the basic ideas, it still showed a number of unanswered questions. Blockstream researcher Andrew Poelstra devoted himself to studying and improving the initial concept until he wrote an article explaining his vision of the protocol.
Over the years, several researchers have been studying the possibilities offered by Mimblewimble. Some think that this protocol implemented in the Bitcoin network would help to improve its operation, while others claim that it would be too complex.
In June 2019, the Mimblewimble white paper first became known under the signature of the pseudonym we already knew, Tom Elvis Jedusor (French version of the Muggle name of Voldemort). Shortly after a user, also anonymous under the pseudonym Ignotus Peverell launched a project on Github (platform for project development) under the Mimblewimble protocol. This project is Grin and was the first of several projects to implement Mimblewimble in its operation.
Any blockchain working under the Mimblewimble protocol represents anonymity, so it contains neither the transactions nor addresses of its users. Instead, it groups them together and records them in a single transaction that will later be verified and validated without individual details.
While an outsider will only be able to see a random set of data, only the user will be able to see the sorted data. In this way the protocol protects user data such as the public address of the sender and receiver and the amount received.
Regarding blockchain storage, data is not recorded individually so the network saves storage space.
All this validation process is carried out under the cryptographic scheme of the Pedersen scheme. This allows the verification of operations without the miners knowing the amounts to be transferred or the users’ data.
This system has been implemented in some cryptocurrencies that you can make use of. Here are some of them: