All (full) Bitcoin nodes determine all exchange on a network. This allows a complement to be wholly trustless and decentralized, though also presents poignant drawbacks. Privacy and fungibility are during odds, since open exchange concede anyone to snippet a upsurge of bitcoins over a blockchain. Meanwhile, verifying a flourishing series of exchange adds to a cost of using a node, that could be a centralizing force.
But maybe these drawbacks can be tackled. Last week, a new white paper was rather mysteriously forsaken on a Bitcoin investigate channel, created by a pseudonymous author “Tom Elvis Jedusor” (Voldemort’s genuine name in a French book of a Harry Potter novels). His offer “Mimblewimble” — a anxiety to a Harry Potter spell — presents a radical slimming-down of a Bitcoin custom that could not usually dramatically boost remoteness and fungibility, though also benefaction significantly some-more scalability than Bitcoin’s stream blockchain architecture.
Mimblewimble might only strike dual hulk birds with one stone. Here’s how.
Mimblewimble is formed on some of Bitcoin’s informed remoteness features. One of these is Confidential Transactions, that was mostly grown by Bitcoin Core and Blockstream developer Gregory Maxwell and is now deployed on Blockstream’s Elements