MimbleWimble Coin or commonly called as MWC is a digital currency that offers a great quality of the monetary product. It is a scarce, untraceable, private, scalable, and secure digital money. Besides, it is freely available for everyone because it is developed through open-source software. And don’t forget that the price of MWC is impulsive as well.
Even though MWC is developed using open-source software, it is considered as good blockchain technology. Thus it provides a strong and solid framework with superior fungibility, privacy, and scalability. The blockchain design of Mimblewimble employs a new-fangled way of storing and structuring a transaction. Compared with other blockchain designs such as Proof of Work, it has better quality in terms of securing privacy and network scalability.
MimbleWimble Coin using blockchain design of Mimblewible. Mimblewimble has different traditional model transactions of blockchain. It lets for a blockchain to hold more data or history. Thus it is faster to verify, synchronize, download, and also easier. The Mimblewimble blockchain does not have an identifier or address. All transactions seem like random data from outside. The transaction data can only be seen by the respective participants.
Because MimbleWimble Coin using Mimblewimble blockchain design, it is considered as a good and promising digital currency in the information age. A digital currency must have the 10 main values to be considered as a good one. Those values are:
2. Censorship resistant,
9. Private, and
The developer team of MWC has a mission to achieve those values so that MWC can be the Great Qualitative Money. The MWC network is a new network. It was officially launched in November 2019. The record said that it has 100% uptime and functioned spotlessly. The protocol of MWC network is very strong so that it does not need any hard or soft fork in the future unless there is a defensive measure required to create protection for the network.
Currently, the MWC development is still running well. There are many scopes of developments. New technological and economical innovations are developed to reveal the benefits of Mimblewimble protocol. They already created several innovations such as GUI wallet, secure offline cold storage method, and MWC/BTC atomic swap.
The privacy of MWC has two main concerns. First, there are data of addresses kept. Second, the data about amounts are encoded. To understand more about the privacy of MWC, every block has its own set of inputs and outputs. Every transaction contains several inputs and several outputs. However, the inputs and outputs are not linked with any transaction. Accordingly, there is no way to associate the fund source and where the fund is going to. Outside parties cannot determine the spender and recipient. Also, the amount of transactions is unknown. From the outside, a block will look like scrambled data without any correlation or link between them. Anyone who does not have any privilege to access the block, will found nothing when they try to analyze it. And this is main the key-feature of MWC privacy.
The cryptocurrency of Zcash has a lot of similarities with Bitcoin. Zcash uses decentralized blockchain. It offers anonymity for the users and their transaction data. It also open-sources features of Bitcoin as well. What makes Zcash different from Bitcoin is Zcash’s level of fungibility and privacy.
Zcash was developed by Zooko Wilcox in 2016. Wilcox fond of what Bitcoin can do. However, he concerned about the fungibility and privacy of Bitcoin since everybody can see all transaction data in Bitcoin. Then, he forked out the Bitcoin and develop Zcash from it. At first, it was known as Zerocoin before called Zcash. It receives some private investment from Barry Silber, ex-banker, and Roger Ver, a cryptocurrency legend. Nowadays, Zcash blockchain has its digital currency called Zcash or some call it “ZEC”.
The personal and transaction data in Zcash are completely confidential. To add more privacy, the verification is conducted using Zero-knowledge proofs. This feature makes the verification process can be done without revealing the amount, sender, and receiver data from the transaction. Still, users of Zcash may share some details regarding the transaction for audit or compliance purposes thanks to its selective disclosure feature.
Comparison between MWC and Zcash
MWC and Zcash use different encryption technology. The encryption technology in MWC is ECDA cryptographic and BulletProof that have the same logarithmic cryptographic in Bitcoin. On the other hand, Zcash uses encryption technology of Zero-Knowledge Succinct Non-Interactive Argument of Knowledge (zk-SNARKs). The zk-SNARKs need a prior setup for the verifier and proofer. A set of open parameters is the foundation of zk-SNARKs construction. These parameters are needed for proving the transaction validity. Unfortunately, the zk-SNARKs has drawbacks. First, it causes a centralization problem on the genesis block since the parameters are usually created by a few people or groups. The second drawback is that the keys for validation can be manipulated to generate unlimited tokens silently. Compared with zk-SNARKs, the encryption technology of MWC does not need a trusted setup. So, bulletproof is more efficient and secure than zk-SNARKs. Also, the privacy features in Zcash is optional. As a result, only some users using these features and make the anonymity set is very insignificant. It is a common problem called “opt-in privacy”. In another hand, the privacy of MWC is a Confidential Transaction without the Bitcoin scripting system. It offers a higher level of privacy and also obscuring the transaction details.
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