STEEMIT CRYPTO ACADEMY SEASON 2: PRIVACY COIN BY @levycore//Task done by @kelvincole

Good Day every one, Its a great pleasure to be back on this academic platform to attend to the home task given by Prof @levycore on Privacy Coin. The lecture was well simplified and articulated. Kindly find below answers to the Home task given.

Question1. Choose a Privacy Coin and perform a fundamental analysis of the coin in detail.

For the Purpose of this assignment, i will be discussing on the BEAM PRIVACY COIN, but before embarking on this particular Privacy Coin in Cryptocurrency, it is very pertinent to explain what Privacy Coin is all about.

Privacy Coin are set of Cryptocurrencies that enhances private, faceless or anonymous blockchain transactions by protecting or concealing their origin as well as their destinations. Privacy Coin are unique Cryptocurrencies that enables a user to have total or complete anonymity when transacting with blockchain. This is to say that the customer or users identity, as well as the source of their transaction and history are conceal by several layers that makes it extremely difficult to outline and trace such transactions. Concealing a user actual wallet balance, addresses, transaction history and also inter-playing several transactions with one another in order to evade the blockchain analysis, is some of the main techniques employed by private coins.

From our knowledge of Cryptocurrency decentralized system, where all transactions are transparent and open for all to see ( Open Source), it is very easy for users to access the transaction history of other users in the blockchain. They are able to view other users public addresses,transaction history or even wallet(Deposit and Withdrawals). However, the Privacy Coin helps to limit or to a large extent reduce such over exposure or access into account information or history of a user by other users. This they do via anonymity and untraceability. By Anonymity, The Privacy Coin conceal the identity or personality behind a transaction, why by Untraceability, they make it almost impossible and difficult for third party to monitor the series of transactions made by the user through Blockchain analysis. Privacy Cryptocurrencies are integral part of the cryptocurrency market, irrespective of the assumption that their untraceability nomenclature, instigates controversies or suspicion, regarding fraudulent or criminal dealings or activities.

The BEAM PRIVACY COIN is aimed at investigating Confidential Defi, with the aim of concealing values and metadata of transactions, and at the same time reducing blockchain bloating through its MimbleWimble protocol. Beam as a privacy coin is scalable based on protocols(MimbleWimble ), which aim to explore a world of confidential decentralized finance and also to achieve privacy and fungibility. It utilizes in its blockchain, the POW(Proof of Work) to achieve network consensus.

The idea or main task of the Beam in respect to cryptocurrency privacy is to offer or allow users total control and ownership over their money, and as such initiate a blockchain that will provide confidential as well as decentralized and usable medium of exchange and store of value. It is important to note also that the Beam Privacy Coin is best recommended for investors or users who appreciate scalability just as they value their privacy.

Beam as a private coin guarantees untraceable transaction via non identifiable addresses. Beam through the use of Dandelion Mechanism is able to present as a single large transaction, small transactions that constitutes a single block.

To have a better knowledge of the Beam Privacy Coin or Platform, there is need for us to understand the concept MimbleWimble, as it is the basis for Beam. The MimbleWimble is a protocol or technology, designed originally for the Bitcoin Protocol. This Protocol helps to reduce the load on the transaction blockchain, by sieving old and unwanted data in the blockchain, thus allowing faster harmonization of nodes for easy verification and authentication. It helps to prevent bloating in the blockchain, thereby encouraging the entire nodes to work more efficiently and effectively.

The essence of the MimbleWimble is to resolve scalability issues, and blockchain built on the MimbleWimble protocol usually don't operate public addresses, which means that , there is simply no way information on transactions can be traced to its origin as only the two parties involved in the transaction can access or get to see the relevant transaction data. This protocol is founded on the ownership of of a private keys and Zero-sum verification. It is important to note here, that the Beam Privacy Coin or Platform operates a default privacy control.

The Beam as seen in the coin market cap above, is ranked #373, with a Market Cap of $72,959,364 and Market Dominance of 0.00%. Its daily volume is seen as $14,000.098 and currently valued at $0.820911 as at the time of this task.

Question2. Describe the steps in creating a wallet for the Privacy Coin of your choice. (Screenshot required)

• Since am using an Android phone, i go to my Playstore and type "Beam Wallet"

• I will click on the "INSTALL" icon.
  

• After installing it, I click on the icon "OPEN"

• In the new interface, I click on the "CREATE WALLET" icon.

• I am asked to generate a seed phrase and safe in a secure place, because i will need it later during the process of my wallet creation. so, i click on the "I UNDERSTAND" icon.
  

• The next interface displays my seed phrase , which i will save, in order to go ahead with my verification

• The next interface requires me to confirm my seed phrase

• After confirming the seed phrase, I click on the "NEXT" icon

• I am asked to create a Password, and also to confirm the Password i created.

-After Creating and Confirming my Password, I click on the "START USING YOUR WALLET" icon.

• In the next interface, I click on the "ALLOW" icon, to give my Beam Wallet permission to run in the background, so that i can always accept transactions.

• Finally, My Beam Wallet is successfully created.

Question3. Explain the reason you chose the Privacy Coin. (State the advantages and disadvantages)

• I opted for the Beam Privacy Coin for the fact that it has a user friendly interface, which makes it easier for me to execute my transaction, coupled with the high speed experienced in the process of transacting as well as its lower service fee /charge.

• Another reason i decided to go for the Beam Privacy Coin is its uniqueness in applying the MimbleWimble Protocol that enables it to reduces or sieve out old and irrelevant Data from the Blockchain, and as such allowing quick nodes synchronization for fast verification and authentication.

• The fact that the Beam Privacy Coin has a default privacy control, unlike other privacy coin where you first have to request makes it an attractive privacy coin for my use.

ADVANTAGES OF THE BEAM PRIVACY COIL

• The Beam Privacy Platform, is well able to do several types of transactions with the aid of its scriptless script technology, as it encourages time-lock transfers, atomic swaps, in addition to enhancing simple value transfers.

• The Beam Privacy Coin is highly scalable, since it is able to keep a lean and compact blockchain. The Beam privacy platform was well designed to avoid transaction bloating with its use of MimbleWimble protocol to remove data that are old and probably not useful in the present transaction process. Thus, by doing this, they have been able to cut down on computational overhead demands.

• It provides a stronger privacy control by having every transaction private by default. This invariably mean that the user(s) are solely responsible for deciding whatever information they chose to make public as they have total control of their personal data.

• The confidential transaction and asset concept introduced by Beam is another great achievement/highlight of the Beam Privacy coin, because it ensures the introduction of new digital asset types,like debt instruments, real estate assets and also new currencies, which can be transacted privately on the Beam platform

DISADVANTAGES OF THE BEAM PRIVACY COIN

• The Beam Privacy Coin because of its unique features and processes involved in transacting, sometimes constitute a higher processing fee.

• The Beam Privacy Coin, just like every other Privacy Coin, is seen as a means to undertake or transact fraudulent or criminal deals, basically because of its anonymity and untraceability.

Question4. Conclusion

In conclusion, the fact that most cryptocurrencies operates on a decentralized and open source platform, and the desire by some users to have their privacy as regards transacting in the blockchain, necessitated to the need for a private coin. With the introduction of these private coin, the user is now at liberty to determine the information he choose to make available to the public, as well as those he choose to keep private to himself or the other person he is transacting with. There is also the stigma attached to the privacy coin, as it is sometimes view as an avenue to perpetrate crime or fund terrorism, since the users identity are anonymous and the difficulty in verifying their addresses and transaction details.

Many Thanks to Prof @levycore for such am impactful lecture. Kind Regards.