The Mimblewimble protocol originally comes from a Bitcoin developer chatroom user named, Tom Elvis Jedusor, who created a whitepaper based around a protocol that boasts both enhanced privacy and scalability of the Bitcoin network. MimbleWimble is much more than a name for a spell in Harry Potter, but skipping past the Harry Potter references for a second and looking at the way in which Mimblewimble transactions are carried out. Mimblewimble uses types of ‘confidential transactions’ which use ‘blinding factors’ to encrypt the cryptocurrencies amount.
Unlike traditional confidential transactions, where a random value is picked to encrypt each transaction known as ‘Blinding factors’, allowing onlookers to still be able to verify that a transaction has been made, Mimblewimble allows the recipient to randomly select the range of blinding factors that are picked by the sender. Which, allows the receiver to use the blinding factors as proof of ownership.
CoinJoin is also leveraged by Mimblewimble, CoinJoin allows for payments from multiple spenders to form a single transaction. This not only offers more space-saving, by only storing input and output data, but it also makes it difficult for outside parties to determine which payment was meant for which recipient.
In terms of the implementation, Mimblewimble is a protocol, and Grin is the implementation of it. Grin is a community-led project that uses its own blockchain along with its own cryptocurrency.
In conclusion, Mimblewimble offers both enhanced privacy and scalability of the Bitcoin network. This is achieved through the use of ‘cryptographic innovations’ including adapted confidential transactions and CoinJoin.
