What is Mimblewimble, and How Does it Work? | Empirex Capital
 

What is Mimblewimble, and How Does it Work?


For fans of the Harry Potter films, this term is well known since Mimblewimble is a spell that ties the target's tongue to prevent it from exposing information on a certain topic.

For now, let's dive in to really talk about this term in the crypto universe.

What is Mimblewimble?

Mimblewimble is a privacy-oriented decentralized protocol that uses a novel way of structuring and storing transactions on the blockchain. It was designed and introduced by an anonymous developer who went by the name Tom Elvis Jedusor, who was a French counterpart for “Voldemort” in mid-2016.

How does Mimblewimble work?

Taking its name from the Harry Potter books series’ well-known tongue-tying spell that ties the victim’s tongue to prevent it from revealing specific information, Mimblewimble protocol literally works like a spell. It provides a framework for a blockchain that offers a new realm of potential in terms of scalability, fungibility, privacy, and crypto anonymity, as the protocol allows cryptocurrency information to remain completely anonymous.

Mimblewimble transactions' complete anonymity feature stands in contrast to the pseudonymity of Bitcoin (BTC) and other cryptocurrencies where usually three secrets are revealed: the sender’s address, the amount of crypto sent, and the receiver’s address. Mimblewimble does not reveal any of the three secrets or information.

Mimblewimble’s cryptographic approach

Mimblewimble’s cryptographic approach is named Elliptic Curve Cryptography (ECC). ECC allows Mimblewimble to fulfill the two major requirements of verifying the correct transaction amount and parties involved without publicly revealing any information.

ECC is based on discrete logarithms, which makes equations on the blockchain much more complicated to work out. Basically, logarithms are the opposite of multiplications which are much easier to perform compared to factorization. The term discrete refers to a branch of mathematics that revolves around a set of discrete mathematical values and covers such topics as probability and set theory. Therefore, implementing ECC Mimblewimble strengthens security.

Moreover, Mimblewimble combines cryptographic protocols such as Confidential Transactions (CTs), CoinJoin, Dandelion, and Cut-Through to achieve a higher level of security and anonymity. In general, these protocols help conceal transaction information.

What are Mimblewimble’s main features?

When talking about Mimblewimble protocol, it is always said that it embraces three distinct characteristics making it unique compared to other blockchains.

First of all, it is anonymous. Unlike the majority of other blockchain systems which are mainly pseudonymous. Thanks to the protocol design, it becomes extremely difficult to bypass the anonymity of a user.

The second feature is fungibility. Mimblewimble’s difficult-to-trace assets make it more fungible compared with other blockchains since users can exchange any cryptocurrency on the platform without the risk of loss.

The third feature is scalability. According to the blockchain basics, each node adds information regarding the transaction to the ledger to increase the block size.

Created on 26th Nov 2021

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