To understand the benefits and beauty of Mimblewimble, one must first understand the UTXO (unspent transaction output) model of Bitcoin Core (BTC) and other blockchains. BTC transactions consist of multiple inputs and outputs going from the sender to the receiver. Instead of deducting the exact amount from the sender's wallet, the network bundles multiple inputs from previous transactions sent to the sender to balance the amount being sent. There are cases when a transaction involves thousands of inputs. If the sum of the inputs is greater than the transaction amount, the transfer generates an additional output. In this way, the first output contains exactly the amount that goes to the recipient, and the rest is returned to the sender. Since each transaction must be signed individually by the wallet software, the network must process vast amounts of data making it extremely inefficient.
Excellent well-articulated article. Thank you author. Indeed, if Satoshi had access to 2019 technology, he would have created Bitcoin using Mimblewimble.
Excellent well-articulated article. Thank you author. Indeed, if Satoshi had access to 2019 technology, he would have created Bitcoin using Mimblewimble.