A bitcoin transaction often discloses the information about the sender’s address, amount sent and receiver’s address, this lead to the creation of Mimblewimble protocol.
The collaboration between Litecoins and Beam would pave the way to an even more secure and private transaction system. The CEO of Beam stated
“Soverignity over one’s own information is a basic human right, and applies to all aspects of life, and especially to financial transactions.”
Beam will essentially be a scalable and confidential cryptocurrency, also the first one to be launched on the Mimblewimble Protocol. It offers a wide range of newfound privacy solutions that have never been tried before. They are supposed to be more private than Zcash and Monero.
The Litecoin foundation is very serious about the implementation of privacy at the protocol level, they believe that the utmost importance should be given to improve fungibility. Fungibility assets are exchangeable for each other and simplify the exchange and trade processes, as fungible implies equal values between the assets.
Although the protocol is relatively new and highly experimental, it seems promising. It allows the users to encrypt all transactional data made on crypto currency network by adding an extra layer of security to it. It uses CoinJoin, which is basically multiple payment data is combined to hide individual transaction in a cryptographic haze.
According to Charlie Lee, the co-founder of Litecoins, the only quality missing in both BTCs and LTCs is fungibility. The Mimblewimble stops the blockchains from exposing any personal data. It works on hiding the transaction amount by multiplying the value of the transaction with an unknown big number that only the sender and receiver is aware of.
In one of the posts that revealed the big news, Beam stated that
“One of the beam’s goals is to advance privacy in the cryptocurrency space and promote the MimbleWimble protocol”
Beam has also stated that all the work that will be done under this project will be “under a permissive open source license to let the community benefit from it.”