Mimblewimble, a new protocol for private currencies, has generated a lot of hype in recent weeks. Two protocol-based coins, Grin and Beam, went live for the first time this month and have garnered a lot of attention. Although these coins have so far worked poorly, a number of important developers are supporting Mimblewimble. Will the protocol eventually find its place?
Mimblewimble In a Nutshell
Mimblewimble takes its name from a spell from the Harry Potter series that prevents its target from speaking. This reflects the fact that Mimblewimble is primarily a privacy protocol: that is, Mimblewimble does not "speak" or disclose its transaction data. This is true of most privacy encryption protocols, but Mimblewimble provides privacy to a greater extent than most of its competitors.
To achieve a high level of privacy, Mimblewimble uses a series of functions including elliptical curve cryptography, coin mechanisms and dandelion gossip protocol. However, the main innovation of Mimblewimble is the fact that it completely eliminates public addresses. In contrast, private currencies such as Monero and Zcash simply hide the data of the selected transactions.
The Mimblewimble approach has the advantage of improving not only privacy, but also the scalability and speed of synchronization of nodes. The various protocol features also allow you to combine and remove transaction data, reducing the resources required for the Mimblewimble network. All these factors offer improvements over Bitcoin coins and privacy.
Problems in the market
After a long development process, Mimblewimble has finally produced two coins, Grin and Beam. Unfortunately, these coins have worked poorly so far. Grin, which was launched on January 14, saw its price drop from $ 30 to less than $ 5. Beam, which went live on January 4, saw its price fall from $ 4 to less than $ 1. Both of these losses have occurred for weeks or days, a bad sign for short-term investors and miners.
As always, some optimists predict that Grin and Beam will be more successful in the long run. However, most of Mimblewimble's ads are not actually based on those coins. In contrast, many proponents are interested in the Mimblewimble protocol itself. In particular, the founder of Litecoin, Charlie Lee, recently praised Mimblewimble, stating that it offers better scalability than Bitcoin.
Meanwhile, Riccardo Spagni, the main developer of Monero, has also had good things to say. In fact, it is Monero currently being implemented Mimblewimble on his sidechain Tari, meaning that technology will be part of a fifteen-year top-privacy coin in the near future. These developments mean that Mimblewimble could prove to be a great success, even if its first two coins are not.