There are multiple projects that are being experimented on in order to bring a higher level of privacy to the Bitcoin Network. MimbleWimble is one of these proposed projects for Bitcoin-like Blockchain. And this can easily be implemented as a side chain in the far future perhaps and it will be more or less an integrated sidechain. MimbleWimble also removes some of the Bitcoin’s functionalities as well.
What really is MimbleWimble?
One of the significant differences between MimbleWimble and Bitcoin, that is MimbleWimble supports Confidential Transactions whereas, with Bitcoin, all the transactions are public. In a confidential transaction system, the value is generally homomorphically encrypted along with random strings of numbers called the “blinding factors.” In the confidential transaction system, the values are seen directly and they are more often encrypted in a way which allows the math to be done with ciphertext by generating an encrypted result. This happens only when the decrypted matched result of the operations are performed in plain text. This indicates that the value is encrypted and this makes it possible to calculate all the output values other than the input values that add up to zero. The transactions here also include information with the help of which receivers can decrypt the amount. Moreover, in a confidential transactions, both the sender and receiver have some knowledge about the blinding factor.
On the other hand, MimbleWimble will also get rid of individual transactions by advancing itself to a previous concept known as CoinJoin and this will make MimbleWimble non-interactive. MimbleWimble doesn’t contain transactions rather the MimbleWimble blocks only have a list of new inputs and a list of new outputs as well as a list of signatures that are created by the excess value.
We already know that Bitcoin is a protocol and Bitcoin Core is an implementation of the Bitcoin Protocol. MimbleWimble is a protocol as well and here the Grin project is an implementation. The Grin project utilizes its own Blockchain along with its own Cryptocurrency. Ignotus Peverell is the pseudonym of the founder of MimbleWimble who currently operates it.
Fun Fact – Ignotus Peverell is the other name of “The who cannot be named” aka Lord Voldemort from the Harry Potter franchise.
Grin paves the way in implementing the MimbleWimble protocol, and we can only hope like the developers that the lessons which you learn can be taken and applied to the Bitcoin network. As of now, MimbleWimble can only be integrated as a side chain or a soft fork in the Bitcoin network. With the help of this brand new side chain, the users will be able to move Bitcoins easily and transact with an increase in the level of privacy.
The conclusion is that with the use of cryptographic innovations like CoinJoin and transactions, MimbleWimble will offer a very strong scaling solution and will also increase privacy for the Bitcoin protocol