How Secure Is MWC?

MWC versus Monero & ZCash

Given the nature of MWC, given it’s limited supply, it will be important to be able to properly secure coins. Currently in grin, there is no way that we are aware of to send funds from an offline wallet. We are not aware of a way to do this in Beam either.

MWC has implemented new function in the MWC wallet called “submit”. It submits a transaction to the network that has been finalized on an offline node.

Using the power of a distributed peer-to-peer consensus network every transaction is cryptographically secured. Individual accounts have a 24 word mnemonic seed displayed when created, and can be written down to backup the account. Account files are encrypted with a passphrase to ensure they are useless if stolen.

Bitcoin, the principal cryptographic money to scale, was initially touted as giving clients obscurity. The digital currency’s convention endeavored to offer an abnormal state of protection by protecting client characters behind pseudonymous locations, haphazardly created series of numbers and letters. Nonetheless, this approach demonstrated insufficient.

While some believed that Bitcoin kept their exchange history totally private there have been some companies and legal requirements that have utilized blockchain examination to track Bitcoin transactions, exchanges and other behavior.

In the years after Bitcoin was discharged, certain digital forms of money were produced particularly to furnish clients with a more noteworthy shot of staying mysterious. Dash, for instance, bridles a component in light of CoinJoin, which joins reserves from a few clients to diminish the odds that any one client’s character will be distinguished.

The MWC team has already created a fully functional GUI wallet, developed a method for secure offline cold storage of MWC, completed a MWC/BTC atomic swap on testnet and is investigating multi-sig transactions and Lightning Network

‌MWC-PRIVACY
Privacy in Mimblewimble has two main aspects: 1.) There are no addresses, 2.) All amounts are encrypted. To briefly understand how privacy works in Mimblewimble, each block has a set of inputs and a set of outputs. Each transaction includes 1 or more inputs and one or more outputs. At the block level, there is no way to link inputs and outputs to a particular transactions. You can think of each block as a large CoinJoin (described later) where there is no way to correlate where funds are coming from or where they are going. Amounts are also unknown. Basically, at scale, a block would just look like a bunch of gibberish to anyone trying to analyze it. Now, we will compare Mimblewimble to several other crytpocurrencies. There was recent medium post where a researcher showed a method to link transactions in Grin, but as we responded, grin is used very infrequently right now and at scale linking would be more difficult. In addition, even though the headline of the paper was “Breaking Mimblewimble”, the researcher did mention ways around these limitations, one of which (Coinshuffle) is on our roadmap.

ZCASH — PRIVACY
ZCash is a cryptocurrency, similar to Bitcoin in a lot of ways — it is a decentralized blockchain that provides anonymity for its users and their transactions, sharing Bitcoin’s open-source feature, but with major differences in the level of privacy and fungibility that each provides
ZCash was created in October 2016 by a developer called Zooko Wilcox. Wilcox really liked what Bitcoin could do, but he didn’t like the fact that transactions were available for everybody to see. Zcash was forked out of Bitcoin and was previously known as Zerocoin. One of ZCash’s biggest fans is the famous whistleblower, Edward Snowden, but the project also received private investment from the cryptocurrency legend Roger Ver and ex-banker Barry Silbert. The ZCash blockchain has its own cryptocurrency, which is also called ZCash, or “ZEC”. In total,

COMPARE ANALYSIS

This same analysis can apply to a number of other coins that based on the Zcash code base. This would include ZClassic and ZenCash as well. All of these coins use an encryption technology known as ZK-SNARKS (or Zero-Knowledge Succinct Non-Interactive Argument of Knowledge). The first thing to note about this class of coins is that they use a different set of cryptographic functions than Bitcoin, while Mimblewimble uses the same ECDSA cryptographic functions and BulletProofs which uses the same logarithmic cryptographic assumption that Bitcoin uses. Bottom line is that Mimblewimble uses cryptography that’s a lot closer to Bitcoin than the Zcash family. ZK-SNARKS also require what’s known as a “trusted setup”. That means the developers of Zcash along with some outside volunteers were required to destroy certain random numbers they used in the setup. If the developers did not properly do this, they might be able to compromise the system for instance by creating unlimted zcash coins for themselves silently. Mimblewimble has no trusted setup. In addition, in Zcash, privacy is only optional and thus far, almost no users are using the privacy features. Since very few users are using it the size of what’s known as the “anonymity set” is very small. This is generally the problem with what we call “opt-in privacy”.

Contrast The Scalability Of MWC Vs. Monero And/Or Zcash

Now consider this MWC in relation to the three most popular privacy coins: Zcash, Monero and Dash. According to critics, Zcash and zk-SNARK’s ring signatures, which are too computationally intensive, result in slow and expensive transactions compared to MWC.
Monero uses “mixins” to make private transactions. However, according to an analyst, 64% of all inputs do not contain mixins, so those transactions are not private. Other researchers think that about 80% of Monero transactions can be monitored.
And finally, Dash is considered to be the most concentrated of all private currencies, which makes cryptocurrencies less private. While Dash has an advantage in terms of scalability, those who want complete anonymity will not be encouraged to use this coin because of its increased concentration.The Mimblewimble protocol describes how trading partners will interact to build a valid transaction using their private (public key) or (private key) key pairs, used. to demonstrate ownership of the transaction outputs and the selected blinding factor interactively. These blind factors are used to tamper with participants’ public keys from everyone, including each other, and to hide the value of a transaction from everyone except the counterpart in that particular transaction. The protocol also implements a process called cross-cutting to condense transactions by eliminating intermediate transactions. This improves privacy and compresses the amount of data maintained on the blockchain. This cross-sectional process excludes general-purpose scripting systems like those found in BitcoinMWC is a privacy-focused cryptocurrency powered by the Mimblewimble protocol.Speaking of privacy coins, one of the biggest / most frequent comparisons when it comes to Mimblewimble coins is: How is it different from Monero, Zcash and other privacy coins?Unlike Monero or Zcash, MimbleWimble coins enforce privacy at the protocol level, instead of adding layers on the original blockchain to gain privacy. This reduces the load / data stored on the blockchain itself resulting in more scalability.
In short, MimbleWimble uses

Do An In-Depth Review Of MWC Compared To Their Competitors
‌Monero
It uses a technology known as Ring-CT (or Ring Confidential Transactions). The ring refers to the ring signatures that are used the transactions. One of the best parts of Monero is that it has an anonymity set that crosses different blocks. That means that if I get coins in block a, and anyone in my ring set spends coins in block b, the network doesn’t know if it’s me spending them or another user. This provides good privacy even if there are few transactions per block. In Mimblewimble, the anonymity set includes all transactions in a block only. There is no possibility of future decoy transactions in another block. Some would argue this makes Monero more private than Mimblewimble, but given large scale use (like the volume in Bitcoin blocks for instance) the anonymity set of Mimblewimble may be sufficient to offer the same level of anonymity set in Monero or at least close enough. Even at lower volumes it’s a massive improvement over the legacy blockchains. The main benefit of Mimblewimble over Monero though is its scalability.

‌ZCash
all of these coins use an encryption technology known as ZK-SNARKS (or Zero-Knowledge Succinct Non-Interactive Argument of Knowledge). The first thing to note about this class of coins is that they use a different set of cryptographic functions than Bitcoin, while Mimblewimble uses the same ECDSA cryptographic functions and BulletProofs which uses the same logarithmic cryptographic assumption that Bitcoin uses. Bottom line is that Mimblewimble uses cryptography that’s a lot closer to Bitcoin than the Zcash family. ZK-SNARKS also require what’s known as a “trusted setup”.

Conclusion

https://medium.com/@mimblewimblecoin

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