Scalable Confidential Cryptocurrency

Technology Overview
8.8.2018
Original MW implementation from scratch in C++

PoW mining using Equihash algorithm

Limited emission with periodic halving

Supported by Treasury

Source will be opened in September at testnet launch

Grin Using Mimblewimble protocol

Implemented in Rust

PoW mining using Cuckoo Cycle algorithm

Unlimited emission

Open Source

Supported by Community
Confidential Transactions

Transaction Cut Through

 UTXO
Blinding Factor Transaction Value

P = r · G + v·H

Generator Points
 Simple Transaction
Alice Bob

Pi = r1 · G + v·H PO = r1 · G + v·H

Inputs Outputs

∑=0
 Simple Transaction
Alice Bob

Pi = r1 · G + v·H PO = r2 · G + v·H (r2 - r1) · G

Inputs Outputs Kernel

 Simple Transaction

Pi = r1 · G + (v+fee)·H PO = r2 · G + v·H (r2 - r1) · G Fee· H

Inputs Outputs Kernel

∑=0
 Simple Transaction
offset

Pi = r1 · G + (v+fee)·H PO = r2 · G + v·H (r2 - r1- offset) · G Fee· H

Inputs Outputs Kernel

 Bulletproofs
Benedikt Bünz , Jonathan Bootle , Dan Boneh , Andrew Poelstra , Pieter Wuille , and Greg Maxwell

Each output should contain proof that value is positive and does not
overflow
Bulletproofs is a non interactive zero knowledge range proof protocol
with very short proofs and no trusted setup
 Input 1 Output 1 Kernel 1 Fee 1

Input 2 Output 2

Transaction 1 …

Input N1 Output N1 Kernel N1 Fee N

Input N2 Output N2

Transaction N
 Input 1 Output 1 Kernel 1 Fee 1

Input 2 Output 2

Input N1 Output N1 Kernel N1 Fee N

Input N2 Output N2

Block
 Transaction Cut Through
Alice Bob
Pi = r1 · G + v·H PO = r2 · G + v·H (r2 - r1) · G

PI = r2 · G + v·H PO = r3 · G + v·H (r3 – r2) · G

Bob Carol
The structure of a block resembles that of a transaction

All elements in the block are sorted to obscure the original order

Cut through can happen both within a block and across blocks
 Merkle Tree

ROOT HASH

UTXO UTXO UTXO UTXO UTXO UTXO UTXO UTXO

 Current State
ROOT HASH

UTXO UTXO UTXO UTXO UTXO UTXO UTXO UTXO

Previous State Current State
Previous State Current State

New Block
 Root hash
Header
Proof of Work

Body
(all transactions)
+ ROOT
HASH

UTXO UTXO UTXO UTXO UTXO UTXO UTXO UTXO

 Scriptless Scripts

Timelocked Transactions

Escrow Transactions

Atomic Swaps

Auditable Transactions
Sender Receiver

Mac Book Pro 17 Mac Book Pro 17

Online connection over secure channel

Node
 Sender Receiver

Mac Book Pro 17 Mac Book Pro 17

1. Receiver wallet generates random identifier

2. Identifier is sent to the Sender via external channel

3. Sender initiates a transaction via Secure BBS

4. Once transaction is created, it is sent to the node

Node
No addresses are sent to nodes or recorded in the blockchain

Both wallets have to participate in transaction creation

Wallet has to store both transaction value and blinding factor

Dandelion

T1 + T2 + T3

T1 + T2

T1
Roadmap
 Future plans

Mobile wallet

Confidential Assets

Smart Contracts
Thank You
 Total Block Reward
Treasury Miner’s reward
Treasury Miner’s reward

Treasury is time locked in

alignment with blockchain
height

Genesis block
Q&A

https://www.beam-mw.com

https://t.me/BeamPrivacy

https://medium.com/beam-mw