Achieving blockchain privacy and fungibility without sacrificing throughput has been a notoriously difficult challenge. Privacy enhancing upgrades such as zk-SNARKS and Confidential Transactions typically result in lower transaction capacity and higher transaction costs.
MimbleWimble, an alternative blockchain design, promises to surmount this challenge. The Harry Potter named design came into the public light in 2016 when Tom Elvis Jedusor released it on a developer website. Since then, researchers and developers from different blockchain projects have contributed to its development. Several teams are currently looking to bring MimbleWimble blockchains into public usage.
Let’s have a look at what’s under MimbleWimble’s hood.
Alternative Blockchain Design
MimbleWimble’s design is significantly different from UTXO blockchains like Bitcoin. For a start, there are no addresses and no scripting language, the rudimentary programming language used in Bitcoin.
In Bitcoin transactions, old outputs sign new outputs. All these…