Nowadays, the possession and transaction of cryptocurrencies have become more popular. An increasing tendency to shift from the trading of stocks to that of cryptocurrency, has started to grow among the investors and traders. All these happened because of people’s understanding of the power of the blockchain and the anonymity and secrecy of transaction it offers. Some critics of bitcoin highlight the transparency of its transaction (from address, to address, blocks etc.).
MimbleWimble Coin backed by MimbleWimble protocol has emerged finding solution for that problem and it offers a wide range of advantages and potentials for those who are new to the crypto world as well as for those who are already there. In this article, I would like to highlight why I think using of MimbleWimble Coin will be a remarkable milestone in the business venture of the investors.
The concept of the ‘good money’ has been defined by famous modern economists as ‘Scare, Censorship resistant, Recognizable, Extensible, Durable, Indestructible, Salable, Portable, Fungible, Private, and Divisible. Fiat coins, gold and other precious metals which are the conventional concept of good money lack some or most of the features given in the definition, whereas cryptocurrencies in general includes almost all the features given, in varying proportions.
It is worth saying that MWC possesses all these features and it is highly competent and challenging to bitcoin and all other privacy coins, in privacy scalability and security.
Full Node and MinersMWC offers its full node and wallet supported by various mining pools (Singularity, Icemining, Pacific Pool, Frosty Pool, Wooly Pooly and 2Miners), thereby providing the miners with choices and valuable potentials.
Scarcity, Scalability, Privacy, Fungibility and Security
All the transactions, being on the base layer use Grey Maxwell’s Coin Join with his confidential transactions and signature aggression, it is doubtless to say that MWC is more perfect than other cryptocurrencies including bitcoin, in security, scalability, privacy and fungibility. It has a large supply of 20000000 MWC.
After having been launched in November 2019, it has been accepted by a vast majority of investors and several exchanges, and has functioned wonderfully in the transaction, distribution and mining. Without giving room for a potential future hard or soft fork, MWC was designed and presented in a flawless manner.
After being ignored in 2016, in which it originated, MimbleWimble Technology was presented in a more acceptable way in the 2018 paper titled ‘Aggregate Cash System: A Cryptographic Investigation of MimbleWimble’.
Security & Privacy
MWC offers the perfect anonymity and security of the transaction, thereby making it impossible for anybody to trace the addresses and the amount of transaction which has been encrypted. Nobody has access to the information about where the fund is coming and where it is going. Under the MimbleWimble protocol, the private and public key pairs are completely inaccessible, and some blind factors are used to hide private layer and the amount of transaction. The ‘cross-cutting’ process of MimbleWimble eliminates transactions, thereby, strengthening privacy, and compresses the amount of data maintained on the blockchain.
Good money in the information age
Only few people and economists realises that quality of money is superior to quantity of money. The better the money functions in the eyes of people, the greater the demand for it. The quality of money lies in its capacity as perceived by actors to fulfill its main functions. Based on this theory about good money, MombleWimble protocol presents a coin which is competent in all of the ten characteristics illustrated below about good money.
RecognizableRecognizing bitcoin and MWC is far cheaper than fiat currencies and gold. Gold requires a perfect refinery which is highly costly to safely and securely recognize its genuineness, whereas use of cash machines for fiat currencies like USD, EUR, YEN for verifying the genuineness of bills in banks and stores are also time-consuming and expensive.
In case of MWC, recognizing it through a full node is cheaper than bitcoin, because the Initial Block Download (IBD) is much faster with MWC than bitcoin.
Gold has been valued as a trustable asset because of its stock-to-flow ratio. After May 2020 halving, bitcoin’s stock-to-flow ratio is approximately 55. This made it comparable to gold’s stock-to-flow ratio which is 45-68. MWC uses a pure proof of algorithm and has the highest stock-to-flow ratio of any base layer MimbleWimble coin. By October 2020, MWC will have a stock-to-flow ratio approximately equal to BTC and by February 2021, it will have a significantly higher stock-to-flow ratio.
Despite multitude of challenges from political authorities, bitcoin continues to be perfectly censorship resistant because people have chosen it out of their free will, and, the stronger the fundamental monetary properties of the network, the less susceptible the network and actors that use or secure the network, will be. MWC will also get in the same level after some days, if there are more full nodes, more community members, holders and users.
Durable & Indestructible
Being created in supernovas, gold can lie under the sea for millennia, being indestructible. Likewise, bitcoin is also indestructible and durable because its source code and ledger exists on hundreds of thousands of computers throughout the world. Nevertheless, its few full nodes are TOR supported, resulting in a potential danger of being targeted. Even though MWC is only data like bitcoin, since every holder and user has a financial incentive to run their own full node, it is more durable. In addition to that, MWC’s greater scalability than all other legacy coins enables some unique user behaviours. For instance, in QT wallet 1.0.22, the ability for TOR transactions by default with no user setup was introduced. MWC-node-3.2.3 introduced the ability for TOR outbound connectivity which provides complete privacy of location and consequently, greater durability of the MWC network. With the releasing of mobile wallet, MWC network will be more indestructible. Furthermore, since it is scarce and caters the holders of last resort, there seems to be a much smaller UTXOS set, resulting in higher scalability, less resource usage, a more resilient blockchain and greater indestructibility.
ConclusionTo conclude, MWC, with its all ten utmost features of good money is, and will be a perfect coin for using on daily basis for those who are new to crypto as well as for those who are already there.
© Copy right reserved by the author Absad Kannengattuputhalethu
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