Challenges in cryptography // Anonymising transactions and improving scalability

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.

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) 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.

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