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9. MimbleWimble – what is it? 

In the world of cryptocurrencies, where every transaction can be traced like footprints in the snow, privacy is becoming a rare luxury. MimbleWimble, named after a spell from the Harry Potter universe, was designed to change that.

But this isn’t just a clever reference. MimbleWimble is a powerful technology that reimagines how blockchain can be more private, scalable, and lightweight—without compromising security.

Where Did MimbleWimble Come From?

The protocol appeared in 2016, introduced by a mysterious figure using the alias Tom Elvis Jedusor (the French name for Lord Voldemort). He proposed a new way of structuring blockchain transactions that hides key data—such as addresses and amounts—while still keeping everything mathematically valid.

How Does MimbleWimble Work?

In typical blockchains like Bitcoin or Ethereum, every transaction publicly displays the sender, receiver, and amount. MimbleWimble does the opposite: it hides everything except the essential math that proves the transaction is valid.

Instead of individual transactions, MimbleWimble bundles multiple payments into one large group transaction. Once verified, there are no visible addresses or amounts. The result? Compact and private blockchain records.

Key Principles:

  • Confidential Transactions – transaction amounts are encrypted and visible only to the parties involved.

  • No Addresses – there are no permanent sender or receiver addresses on-chain.

  • Verification via math – the blockchain only needs to check that inputs and outputs balance (they must equal zero).

All of this is made possible using a cryptographic tool called the Pedersen Commitment.

Two Core Technologies Inside MimbleWimble:

  • Cut-Through – removes unnecessary transaction data, reducing blockchain size and improving efficiency.

  • CoinJoin – combines multiple users’ transactions into one, making it impossible to tell who sent what to whom.

Dandelion Protocol: Extra Layer of Anonymity

To further boost privacy, MimbleWimble can work with Dandelion, a protocol that obscures the origin of transactions. It uses two phases:

  1. Stem phase – the transaction hops through random nodes in the network, one by one.

  2. Fluff phase – only after a few hops does it get broadcast to the entire network.

This two-step relay makes it nearly impossible to trace the original sender.

Why Does It Matter?

Key Advantages:

  • Scalability – smaller block sizes mean faster syncing and more efficient networks.

  • Privacy – no on-chain addresses or amounts.

  • Fungibility – all coins are equal; no coin can be blacklisted based on its history.

Downsides?

  • Longer confirmation time – because of the math-heavy process.

  • Vulnerable to quantum attacks – due to traditional digital signature methods used.

Who Uses MimbleWimble?

  • Grin – a minimalist, community-driven coin built in Rust. Focused purely on privacy.

  • Beam – a more business-oriented project with a user-friendly wallet and investor support.

  • MWC (MimbleWimble Coin) – a rare and ultra-private coin, available only on a few niche exchanges.

What About Bitcoin?

Could Bitcoin use MimbleWimble? Technically, yes—as a soft fork or sidechain. There’s been serious discussion in the Bitcoin community about it. And since Litecoin has already implemented MimbleWimble via extension blocks, it’s clearly doable.

For now, it’s unlikely Bitcoin will adopt it in full—but it might one day be used for optional private transactions or scaling solutions.

Can You Mine MimbleWimble Coins?

Yes. Since Grin and MWC use Proof-of-Work, you can mine them with CPU, GPU, or ASIC hardware. The algorithms used are Cuckarood29 and CuckAToo31. The current block reward for MWC is 0.6 coins.

Summary

MimbleWimble isn’t just a playful name—it’s a serious innovation in blockchain privacy. By combining stealth transactions, scalable data structures, and clever cryptography, it opens the door to a more private, efficient crypto world.

Whether it remains a niche solution or becomes part of mainstream coins like Bitcoin depends on adoption, regulation, and future development. But one thing is certain: MimbleWimble changed the conversation around what privacy in crypto can look like.

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