Introduction
The possibilities of blockchain technology are endless and it is already defining the way we store, manage and use our funds. The blockchains does the work of storing our data securely and carrying out transactions securely without the introduction of a third party.
While blockchain offers the needed security, it doesnt have the efficacy to keep us anonymous from the prying eyes of the internet because all transactions on the blockchain are visible to the public. Which means that a careful analysis of this data can expose the identity of the owner. Who knows what other technologies are capable of???
So the question for numerous users of the blockchain is; How are you sure you are not being monitored presently? In otherwords, the big picture is; How do you verify your privacy?
The much neglected privacy issue : The talking point
Privacy is a right that every man deserves whether living on the internet or otherwise.
The inventor of the blockchain will certainly agree with me on this account as his anonymity more than his invention has won him the prestige of god-like statue in the eyes of many. Yet they claim the man has one million bitcoin in his safe, although I dont know how true is this claim but What a power! To be rich and anonymous without any trace!
Even yet, the blockchain which he built cannot rival his level of anonymity. And since his identity is not known, so how can you steal from his 1 million Bitcoin or defraud him or threaten him through any means possible just so you get a tip of his richbag.
The truth is the internet has many channels through which it users can be exposed to cyber criminal attacks of varrying length and degree and the blockchain is not an exception because a lot of new business who will be integrated in the near future into the blockchain mainstream can serve as the weak channel for cyber criminals to filtrate users information and perpetrate attack.
Therefore, this means that privacy pose a big risk to blockchain mass adoption. The solution is to allow users manage their transactional details with different parties. A technology that provides solution to privacy issue is BEAM
What Is BEAM
BEAM is a new decentralized, fast and scalable blockchain based on the MimbleWimble protocol
Beam is built to allow users choose the way the blockchain will publish their transactional history, either public or private.
While the bitcoin generic blockchain publish transactional history publicly, Beam is a fully-private cryptocurrency which act as a private blockchain by default unless the user choose to make it public.
The Chart Below Shows How BEAM Compares with Other Blockchain
How Beam Drives A Full Privacy and Scalable Blockchain
Privacy along with scalability is an inherent feature of the MimbleWimble protocol which makes it ideal for mass adoption. Inorder to fully understand how this user control their privacy using the Beam blockchain, we need to understand the two concepts at the core of MimbleWimble protocol
Confidential Transactions
The MimbleWimble ensures user privacy by maintaining a confidential transaction because the blockchain doesnt keep a record of the users address, It ONLY keeps a record of the cryptographic commit generated after each transaction.
The two properties of the cryptographic commitment scheme are
Hiding
Hiding acts to conceal the transaction history from the receiver
unless the sender authorizes it via a commit scheme
Binding
Binding allows the receiver to view the transaction history
once the sender authorizes activates the commit via his key
While the MimbleWimble uses the Pedersen commitment scheme to solve the problem of privacy using this formular
C = r * G + v * H
where
r is a binding factor,
v a secret hiding value,
G and H are generator point on a
specific elliptic curve
Transaction Cut-Through
The blockchain is sufficiently scaled and fast enough to accomodate more users due to its ability to cut-through intermediate block which means that there is no need to verify all the nodes before a transaction is registered on the blockchain.
Therefore, the blockchain only keeps the present state of a transaction or the UTXO
(Unspent Transaction Output) state and not the entire history like the generic blockchain.
Potential Solutions Offered via the Beam Blockchain
Full Privacy
Beam via the hiding and blinding mechanism of the MimbleWimble Protocol is able to drive a full privacy blockchain option for it users who choose how the blockchain processes their transactional details.
Fast And Scalable Blockchain
Secure and decentralized
Just like your generic bitcoin blockchain, there is no single point of control in the Beam blockchain as well. Giving users maximum control and security.
Escrow Service
This is a usecase that is derivable from the use of the platform by users as the commit scheme mechanism can be channelled to pay a party once a service has being met
Atomic Swaps
Converting one cryptocurrency to another is enabled on the wallet while the Beam blockchain makes it fast!
How it Works
The flow diagram below summarise how the privacy option can be activated via their mobile/desktop supported wallets
Full Benefits of the Beam Blockchain
- Privacy
- Fast and secure transaction
- Scalable blockchain
- Open Sourced for contributors
- Escrow and time locked transactions
- Atomic Swaps
- Written in C++ from scratch
- Untraceable transaction history
- User controlled privacy
Use Cases
Disbursement/Loan Office
In an average company setting, In other to avoid unnecessary emnity between staff; it is important to disburse their settlement in a confidential manner away from the prying eyes of the public.
The same thing applies when applying for a loan online via the blockchain. Beam comes to the rescue for company looking to offer this services on the blockchain.
Conclusion
Because the internet connects everything together. Exposing one's identity cheaply through online activity can give large access to cyber criminals.
This is why it is impertinent to remain anonymous in platforms which anonymity is key, what more than the blockchain where we store and manage our funds.
- Beam Website
- Beam Youtube
- Beam Position Paper
- Beam Bitcointalk
- WimbleMimble Paper
- Beam Medium
- Beam Telegram