The MimbleWimble protocol is a new blockchain innovation that was that launched in 2018 and offers many new possibilities in the cryptocurrency space regarding anonymity and scalability. This modern blockchain protocol uses a unique security foundation involving no addresses for transactions, allowing for fully confidential transactions. This structure allows for a more scalable distributed ledger in comparison to the other blockchains within the crypto network.
In a MimbleWimble block, the data appears to be one large transaction instead of many individual transactions. The blocks can still be verified and confirmed, but do not reveal details about the individual transactions themselves that comprise the block.
Despite the advantages, the MimbleWimble protocol suffers from a few drawbacks. One known limitation is the transaction throughput. Systems that support the implementation of private transaction have slower transaction speeds due to required data size needing to be transmitted. Furthermore, the protocol is vulnerable to attacks from quantum computing because of its reliance on the relatively simple properties of digital signatures. However, it is important to note that such quantum computers are years away from development and a solution to this problem will likely be developed in the upcoming years.
To read about the first known proposal for the MimbleWimble protocol from 2016, click here.