August 9, 2020

Beam cryptocurrency review - confidential blockchain

Beam cryptocurrency review - confidential blockchain

Beam is a startup created in March 2018 by cryptocurrency professionals. After 10 months of January 3, 2019 The team launched the Beam coin of the same name on the market, a scalable, confidential cryptocurrency based on the MimbleWimble protocol.

What is MimbleWimble?

MimbleWimble is a protocol based oncryptography of elliptic curves, which in 2016 was created by a developer under the pseudonym Tom Elvis Jedusor. Both the name and the pseudonym are a reference to a series of books about Harry Potter. There MimbleWimble is a spell that made it impossible to speak clearly. Similarly, the blockchain on this protocol cannot disclose information about user actions.

What is Beam cryptocurrency?

Unlike Bitcoin, Ethereum and mostexisting cryptocurrencies in which all information about all participants and their transactions is open and accessible to everyone, Beam completely hides information about participants in transactions, amounts and balances of wallets.

MimbleWimble protocol allows you to achieveprivacy, using standard well-studied cryptographic methods, and also has a compact blockchain: according to the Beam team, up to 10 times less than Bitcoin. Confidential currencies of the previous generation, such as Monero or Zcash, scale much worse, having a blockchain size 5-10 times larger than Bitcoin.

The smallest particle of the Beam cryptocurrency is the grotto. It equals one hundred millionth share of BEAM and is named after Jens Groth, a professor of cryptology from London.

Specifications of Beam Confidential Cryptocurrency

  • There is no concept of “address” in the system, and the user, using his private keys, controls the coins belonging to him, presented in the form of UTXO (unspent transaction outputs).
  • Limited issue (262.8 million coins) using periodic halving.
  • Mining is done using a modifiedversions of the Equihash algorithm on graphic cards (GPUs). Since two changes to the algorithm were announced during the first year of operation, there are currently no ASIC devices on the market. According to our estimates, they will begin to appear in the second half of 2020.
  • Beam Confidential Transactions Do Not Causeincreasing the size of the blockchain, avoiding excessive computational costs, loss of performance or scalability while completely hiding transaction details.
  • Standard cryptography on elliptic curves is used.
  • The blockchain does not store information about the sender or the receiver of the transaction.
  • Superior scalability thanks to the intermediate transaction aggregation algorithm allows you to maintain a compact blockchain size.
  • Implemented from scratch in the time-tested C ++ language.

Project development

In the ambitious plans of Beam developers - notnot only make the currency private, but also give users the opportunity for further reporting to auditors, legal authorities and financial institutions. Only the owner of the Beam cryptocurrency and only at the time of transaction creation will be able to save a record about it. If at the time of payment the user does not save the transaction record, then it will be technically impossible to retroactively access information about it. If the transaction history is saved, then its viewing by third parties (auditors, legal bodies) is possible only with the help of a special key that the user generates.

Thus, the Beam blockchain, on the one hand,will ensure complete confidentiality of financial transactions, on the other hand, it will allow to comply with regulatory requirements. To date, Beam is the only blockchain that solves this problem.

The team is currently working on building bridges to popular blockchains (Ethereum and others) to allow the confidential trading of tokens from these blockchains on the Beam blockchain.

The possibility is being developed of issuing additional “smart” tokens on the Beam blockchain to support STO, ICO and other types of initial offers.

In the medium term, Beam plansbuild a platform for issuing and trading various types of currencies and tokens, ensuring complete confidentiality of balances and transactions with the possibility of reporting for corporate users.

Beam financial model

During the first 5 years after the launch of the network inTreasury (Treasury) Beam will receive deductions of 20% of all coins mined by miners. Of these savings, monthly salaries are paid to the team, remuneration to consultants, investors and the non-profit Beam Foundation, which will manage the project in the future.

The selected financing model creates a balance of interests between all participants in the Beam ecosystem and guarantees its development in the long term.

Summary

Beam is a well-run startup with ambitious plans that can be seen as a long-term investment.

Read more about the coin on the official Beam website.

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