Alternative protocols to the Bitcoin network and futuristic projection
Introduction
In the last decade, blockchain technology has revolutionised the financial sector, both public and private, due to the advantages offered by blockchain algorithms in terms of asymmetric key encryption, and the real potential to facilitate highly secure financial transactions between various actors.
However, it is important to highlight that the first blockchain protocols were conceived under the characteristics of immutability, transparency and trust through distributed and fully replicated database systems, with the particularity of preserving in time each of the records that are executed in a network, and where the transactions carried out are stored in each intersection point or node that participates in a given network.
In the case of the Bitcoin network, even though its protocol itself evolves over time, as it is a public chain, users or participating actors can access each of the transactions that have been executed on the blockchain, therefore, it shows extremely important data and user privacy, namely; IP address, amount of resources sent or received, time, transaction date, commissions for the use of the network, among other data of equal or greater relevance.
In this sense, the Bitcoin network's operating logic, while it has a solid acceptance because it supports a paradigm shift in financial transactions, also has detractors, mainly because its operating protocol reveals information that some actors wish to keep private.
The constant evolution of blockchain technology has been providing us with new protocols, including the Mimblewimble protocol which, unlike the Bitcoin network, improves the elements related to privacy and scalability, an element that in the last 5 years has been revolutionising the entire blockchain, fundamentally because the Mimblewimble protocol offers privacy and greater security when carrying out transactions in the cryptocurrency market.
One of the advantages of the Mimblewimble protocol is that only the users involved in a given transaction are the only ones who can see the data between themselves, which means that the rest of the users cannot access the information of these transactions.
Other elements of vital importance are that transactions executed using the Mimblewimble protocol offer anonymity, scalability and fungibility, i.e. the protocol does not allow the origin of transactions to be traced, guarantees more scalability than other protocols, and best of all, the value of the cryptocurrency is not lost in the exchange.
SOURCES CONSULTED
➊ Jie Yee Ong What Is Mimblewimble and How Does It Work?. Link
Link
OBSERVATION:
The cover image was designed by the author: @lupafilotaxia, incorporating image background: Source / Author: Usnotv, 2021
Greetings @lupafilotaxia, excellent explanation you have shared about the new projects that offer us the blockchain, although there is still a lack of this blockchain network its projection is very positive, because the new projects that are emerging are very well structured. the BTC remains the crypto market reference despite its weaknesses.
Hi @lupafilotaxia, there are many things still to improve in terms of Blockchain, the good thing is that there are many projects that are making progress in the aspects that need to be improved.
Bitcoin is not perfect, it is slow, and it also has those details that you mention, that there is not total data privacy, however, it is what has given rise to all this revolution that is being experienced. It is important to highlight that and that many things continue to improve. I did not know about this project you mention, thank you for sharing this information.
Hello @josevas217
It is true, there are still many things to improve in terms of technological development in the blockchain, and more if we consider that many users opt for privacy and greater security when making transactions, an element that implies the need to develop new protocols that fit these and the new needs.
Best regards, be well.
Greetings friend, the Mimblewimble protocol offers scalability and fungibility, some of the factors in which the bitcoin network has had problems, especially fungibility as some coins can be easily flagged if their use in criminal acts is traced.
Greetings friend @lupafilotaxia, from my perspective neither the person who invented the BTC had any idea of the potential that this was going to generate, as far as the economy is concerned, because it has completely changed the world, giving a decentralized economy with a high confidence in investors, after the BTC revolutionized this market have been developing platforms for the improvement of the same as you mention the "Mimblewimble offers privacy and greater security when making transactions in the cryptocurrency market" thanks for the topic.
Hi @chucho27
I agree with you, the protocol that runs on the Bitcoin network is an extraordinary advance in technology, and of course I know it can be improved by developing new protocols, but no doubt, many users opt for privacy and greater security when making transactions, and that demands the development of new protocols such as Mimblewimble.
Best regards, be well.
@tipu curate 5
Upvoted 👌 (Mana: 0/5) Get profit votes with @tipU :)
It is important to have an element of privacy when using a public blockchain.