As interest in cryptocurrencies with a privacy emphasis has grown, BEAM was developed in response. Complete anonymity is what BEAM strives to provide users, unlike Bitcoin and other early cryptocurrencies that allow some degree of pseudonymity. The digital currency known as BEAM was officially presented on January 3, 2019, by a gathering of engineers under the heading of Alex Romanov. Since it falls on the 10th commemoration of the Bitcoin beginning block, the day for kickoff has symbolic importance. Yet, this coin employs the Mimblewimble protocol to guarantee that all transactions are private by default, in contrast to Bitcoin, which depends on the PoW consensus method without privacy protections.
Understanding mimblewimble
A versatility and security centered blockchain innovation is called Mimblewimble. The name Tom Elvis Jedusor, which implies a French transformation of Voldemort from the Harry Potter books, was at first recommended by a unidentified person. Working to reduce the size and increase the performance of the blockchain, the protocol gets rid of transaction data that isn’t needed. Transactions on a blockchain that uses Mimblewimble, like BEAM, are private. Confidential Transactions (CT), CoinJoin, and Dandelion are just a few of the cryptographic algorithms that combine to accomplish this. In addition to hiding the sender and recipient identities, these strategies also mask the transaction amounts.
Confidential transactions (CT)
Using this method, the money being transmitted is encrypted and only the parties involved are aware of its true value.
CoinJoin
It is difficult to ascertain which inputs correlate to which outputs when using this strategy of integrating many transactions into one.
Dandelion
A mechanism which, before a transaction reaches the blockchain, passes it across many nodes in order to assist conceals its source.
Principal elements of BEAM
To differentiate itself in the competitive cryptocurrency industry, BEAM provides a number of features:
Total secrecy
In contrast to other cryptocurrencies that need further procedures to activate privacy features, all BEAM transactions are private by default.
Reliability
Less data is retained on the network because to the Mimblewimble protocol, which enables a more compact blockchain. Node storage needs are reduced and scalability is improved as a result.
Opt-in auditability
Privacy is the first priority for this coin; however, auditability is also an option. The privacy of other transactions may be maintained by users by creating audit keys that let other parties see their transaction history.
Atomic swaps
Users may trade BEAM for other cryptocurrencies without a centralized exchange thanks to atomic swaps, which are supported by the coin. Transaction security and decentralization are improved by this feature.
Private resources
A bespoke token that inherits BEAM’s privacy properties, Confidential Assets (CA) may be created using BEAM. Digital tokens and tangible assets alike may be represented by these assets.
Mining BEAM
As a Proof of Work (PoW) method, Equihash 150/5 is used by BEAM. This algorithm is meant to withstand ASIC attacks, which makes it more user-friendly for individual GPU miners. Large mining farms won’t be able to control the coin mining thanks to this algorithm, which guarantees decentralized mining. Miners get incentives in the form of BEAM currencies for validating transactions and adding them to the BEAM blockchain. As a means of slowing down the issue of new coins and containing inflation, the block reward is progressively lowered over time, halving on a timetable similar to that of Bitcoin.
BEAM wallet
It takes a BEAM wallet for users to handle and store BEAM currency. Windows, macOS, Linux, Android, and iOS are among the operating systems that support the official BEAM wallet. Transaction privacy, atomic swaps, and secret assets are just a few of the coin’s features that the wallet fully supports.
Application examples
A wide range of use cases may benefit from BEAM’s privacy characteristics, such as:
Personal exchanges
BEAM is the best option for customers that value confidentiality and financial privacy in their transactions.
Decentralized finance
Applications centered on privacy may be developed using Decentralized Finance (DeFi) BEAM’s secret assets and atomic swapping features.
Logistics of supply chains
Tracking assets in a supply chain is possible using BEAM’s privacy features, which protect confidential data from prying eyes.
Methods for participation
It’s easy to participate in this coin’s environment. You may begin by getting BEAM coins via mining or an exchange by downloading the official BEAM wallet. Getting active might also include helping to the development of the coin or participating in the community via forums and social media.
To sum up
In response to the increasing need for scalability and anonymity in the blockchain realm, BEAM is a cryptocurrency. It is an effective tool for consumers who respect their financial privacy because of its distinctive implementation of the Mimblewimble protocol, which provides total secrecy, improved scalability, and other features. BEAM offers a strong and safe platform to investigate whether you’re interested in mining, conducting private transactions using the coin, or creating privacy-focused apps.
You may also find these articles helpful
Is it profitable to trade BEAM
Everything you need to know about Elastos
Exchanging cryptocurrency in FTX
