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Beam cryptocurrency: Experience enhanced privacy and scalability

Cryptocurrencies are the best-known alternatives for fiat currencies that offer decentralised features to eliminate middlemen from the equation. However, although they are secure, they are not completely anonymous. The transactions that you perform within the blockchain are public and are accessible to other users in the network.

This is where privacy coins like Beam cryptocurrency come into play. As the first digital asset to apply Mimblewimble privacy technology, it gives users anonymity and complete control over their finances. 

Interested to know more about its features and how it can potentially revolutionize the De-Fi sphere? Continue reading below!

A look into Beam cryptocurrency

Launched on January 03, 2019, Beam is a private and scalable cryptocurrency that functions on both LelantusMW and the MimbleWimble protocols. With the MimbleWimble protocol, it can allow the full confidentiality of blockchain transactions while reducing blockchain bloating altogether. There are no addresses that will be displayed and UTXO values are only known to its user using private keys. The implementation of LelantusMW will also offer better privacy to the network since every user obtains up to 64 kilobytes of anonymity. 

When it was created, the developers aimed to address the shortcomings of private cryptocurrencies such as Zcash (ZEC) and Monero (XMR) to name a few. 

During its launch, it offered the following components:

  • Stand-alone OpenCL and Cuda miners
  • Beam nodes
  • Desktop wallet application
  • Command-line interface wallet.

How is MimbleWimble implemented on Beam?

To fully understand Beam, you need to know how MimbleWimble works and how it became the founding block of its technology. 

If you are a fan of the Harry Potter series, then this crypto protocol would instantly ring a bell. For further context, it is a tongue-tying curse that prevents anybody from exposing relevant information on a certain matter. The protocol was introduced by pseudonymous Tom Elvis Jedusor by publishing a MimbleWimble whitepaper in August 2016.

Today, this blockchain protocol is being implemented on two privacy coins—Grin and Beam. Since MimbleWimble aimed to transform Bitcoin’s pseudonymity into full anonymity and enhanced privacy, it worked well alongside Beam cryptocurrency using confidential transactions.

Confidential transactions

In the MimbleWimble protocol, confidential transactions use the Pedersen Commitment scheme that permits users to hide the total amount of a certain transaction they are involved in. Only the two parties (the sender and the receiver) will know the complete details of the said transaction, preventing outsiders from accessing your affairs.

The network will implement blinding factors, encrypting the total amount you want to transfer which makes it completely unintelligible for other users.

Beam features that you should know

One of the unparalleled features Beam cryptocurrency offers is improved privacy control over your digital assets. Unlike other privacy coins that only make your transactions private when you request them, Beam automatically makes your transactions private and anonymous. 

Here are some of its other features that you should know:

Atomic swaps

The Beam network utilises Atomic Swap functionality which ensures peer-to-peer trading without intermediaries for cryptocurrencies such as Litecoin, Dogecoin, Bitcoin and Ethereum. 

Direct payment channels

Also known as Laser Beam, Beam has created direct payment channels between crypto wallets. These channels enable instant payments with fast confirmation time, making it ideal for activities such as micropayments and streaming to name a few.

Beam Shaders

With Beam Shaders or smart contracts, they allow distributed decentralised finance (DeFi) applications to function on Beam Virtual Machine (BVM). Through this, it has launched a confidential DeFi platform named BeamX that contains an in-wallet dApp store and price oracles. 

In addition, if you want to explore the DeFi environment, The BeamX platform has you covered. It supports lending tools, stable coins, DEX and wrapped assets.

Different transaction types to choose from

Aside from transactions that are confidential by default, Beam cryptocurrency also offers three types of transactions, including:

  • Online transactions

Among the Beam services, online transactions are the most recommended because they offer the lowest fee. However, keep in mind that both the sender and the receiver should be online within 12 hours of transaction creation so both wallets can complete the transaction.

  • Offline transactions

Compared to online transactions, offline transactions typically have higher charges. For instance, if you need to transfer your assets to someone else but you have no way of knowing if they’d be online within the next 12 hours, you must use a previously used address to process the transaction.

  • Max privacy transactions

A max privacy transaction is a type of special offline transaction. It offers senders a maximum anonymity set, ensuring them better privacy. The downside of this transaction is that it can take up to 72 hours to complete, making it unsuitable for last-minute asset transfers.

However, you have the option to adjust the lock times and reduce the 72-hour transaction time. Just remember that the shorter the lock times, the lesser the privacy. 

Top-notch Beam wallets

Beam wallets are easy to use since they are user-friendly and accessible on programs such as Mac, Linux, Windows, iOS and Android.

What makes Beam different from other crypto wallets is that it does not record your wallet address. It just stores that information locally on your device so the data stored on the blockchain remains completely private. 

Into the future: What’s in store for Beam cryptocurrency?

Since it was just released in 2019, Beam is still relatively new compared to its predecessors like ZCash and Monero. However, with its successful implementation of the MimbleWimble protocol, it has become one of the most sought-after privacy coins in the market.

In the following years, the Beam Team is planning to perform a hard fork to enhance the overall performance of the network. According to their website, they are also planning to bring Ethereum into their platform and implement EVM into their nodes.

The innovations Beam brought into the world of cryptocurrency have made the crypto sphere a more secure environment for investors. 

To know more about its progress, stay tuned here at Cryptoshimbun!

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