What is Beam Coin? (BEAM)

The Beginner’s Guide

Beam coin platform is the secret DeFi protocol running on LelantusMW and Mimblewimble platforms. In the first year of crypto currencies, it was thought that Bitcoin (BTC) transactions could not be traced. But as blockchain analysis evolved, it became clear that transactions could be traced back to the senders. As a result, it posed a serious threat to privacy.

To solve the problem, the BEAM protocol has developed solutions that anonymize transactions, address amounts, and user IDs. As a result of the improvements, the Mimblewimble protocol was launched in March 2018.

Who Are the Founders of the Beam Project?

The core team in the Beam project founded the project together with Alexander Zaidelson, Alex Romanov and Amir Aaronson.

The CEO of the project, Alexander Zaidelson, started his career as a software developer and provided consultancy services to several startups. He also founded Nareos, a platform for sharing files between people.

The project’s CTO, Alex Romanov, led large teams on several challenging projects.

Amir Aaronson, on the other hand, operates as the COO of several technology companies.

Why Beam?

Beam Coin is one of many new cryptocurrencies based on the Mimblewimble protocol and was developed to help fill the gaps in existing privacy coins such as ZCash and Monero. Beam has several features that claim to be a superior cryptocurrency.

1. Strong Privacy Controls

Stronger privacy controls are at the top of the Beam’s list of features. Other privacy coins appear to define a privacy model that only makes transactions private when specifically requested, rather than adding privacy by default.

Beam, in contrast, makes every transaction private by default. This means that users are the only one who can determine what information is made public and that users retain full control of their personal data.

Beam coin also, as an additional privacy feature; formed the concepts of hidden transactions and hidden entities. This feature will allow the creation of new types of digital assets such as debt instruments, real estate assets, new currencies, all of which can be easily exchanged privately on the Beam platform.

While other blockchains struggle with scalability issues, the Beam team believes they have solved the problem with a lean and compact blockchain. The processes are designed to prevent bloating using the Mimblewimble protocol.

This will not only reduce bloat, but also reduce computational overhead demands and thus increase network scalability. Beam is designed to support various transaction types using Scriptless Script technology. Besides simple value transfers, Beam; It also supports time-dependent transfers, atomic swaps, and escrow payments.

Privacy will remain the top priority, but this feature will also comply with current regulations with support for immutable digital wallet signatures.

2. What are Confidential Transactions?

Confidential transactions have the ability to hide and blind. The use of confidential transactions allows users to hide or blind any information about the transactions. This means that only the sender and recipient know the transaction amounts.

In this transaction, it is obtained by using blinding factors to encrypt the transaction amounts. The blanking works by assigning a random value and multiplying the actual transaction amount by that random value. A single multi-signature is created covering all inputs and outputs in the transaction.

When the transaction is received, the buyer randomly selects a few blinding factors. These can then be used as proof of ownership when it comes time to spend the cryptocurrencies.

What is MimbleWimble?

Any Beam-related subject requires an understanding of the Mimblewimble technology that underpins Beam first. Mimblewimble is based on the Bitcoin protocol but has been modified to improve privacy and efficiency of the network.

Transaction recipients in the Mimblewimble protocol can create a blanking factor when signing a transaction. This is possible through the use of a combination of Pedersen Commitments and Confidential Transactions. Mimblewimbles provides a privacy and scalable blockchain protocol based on the transaction generation method.

Mimblewimble solves this problem by eliminating scripting, although hidden processes require additional evidence for each transaction, making them burdensome. It then combines blinding factors with fake output to achieve the privacy and security levels of Confidential Transactions without associated performance issues.

Within Mimblewimble blocks, transactions look like a random mix of outputs and inputs. This allows nodes to sync faster as they only need to validate certain new entries rather than the entire blockchain.

Blockchain grows slower, avoids bloating, and makes full nodes run more efficiently; thus improving the long-term decentralization of the network.

What You Need to Know About Beam Coin

1. What are the advantages of Beam?

Beam is one of the first full Mimblewimble apps and provides significant improvements in efficiency and privacy.

2. Which cryptocurrencies are Beam’s competitors?

BEAM’s competitors are Zcash (ZEC), Grin coin (GRIN) and Monero (XMR). Zcash and Monero are known as Beam’s competitors in the areas of control, privacy and scalability. While they don’t see Beam Grin as a competitor right now, they hinted that they might become rivals in the future.

Stay tuned to SinceCoin to learn more about Bitcoin and cryptocurrencies.

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