Mimblewimble: Everything to Know

By  Beluga Research July 27, 2023

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  • Mimblewimble is a blockchain protocol introduced in 2016 by an anonymous developer to address the challenges of privacy and scalability faced by many cryptocurrencies
  • It utilizes innovative cryptographic techniques like Confidential Transactions and CoinJoin to achieve transactional privacy
  • The protocol employs a unique approach called "cut-through" to improve scalability by eliminating unnecessary transaction data
  • While Mimblewimble offers advantages such as enhanced privacy, improved scalability, and compact blockchain size, it also has limitations


Mimblewimble is a blockchain protocol introduced in 2016 by an anonymous developer to address the challenges of privacy and scalability faced by many cryptocurrencies. It was first introduced in 2016 by an anonymous developer going by the pseudonym Tom Elvis Jedusor (a reference to the Harry Potter series). The name "Mimblewimble" itself is derived from a fictional tongue-tying curse in the Harry Potter universe.

Mimblewimble is designed to address two fundamental challenges faced by many cryptocurrencies: Privacy and scalability. By implementing innovative cryptographic techniques, it aims to provide confidential and efficient transactions while maintaining the decentralized nature of blockchain technology.

A Brief History

The concept of Mimblewimble was introduced to the cryptocurrency community through a whitepaper posted on a Bitcoin research channel in July 2016. The author proposed a new blockchain design that could potentially overcome the privacy and scalability limitations of Bitcoin.

Shortly after the publication of the whitepaper, developers started exploring the implementation of Mimblewimble. In 2016, a developer named Andrew Poelstra released a research paper titled "Mimblewimble" that provided a detailed technical explanation of the protocol. This paper laid the foundation for further development and research in the Mimblewimble space.

In 2017, a cryptocurrency named Grin became the first project to implement the Mimblewimble protocol. Grin aimed to be a privacy-centric cryptocurrency that leveraged the benefits of Mimblewimble's design to enhance user privacy and scalability. Later, in 2019, another cryptocurrency called Beam also implemented the Mimblewimble protocol, providing users with an additional option for private transactions.

What is Mimblewimble?

Mimblewimble's core design principles revolve around privacy and scalability. To achieve privacy, it utilizes a combination of cryptographic techniques, including Confidential Transactions (CT) and CoinJoin.

Confidential Transactions ensure that the transaction amounts remain encrypted on the blockchain. Instead of revealing the exact value of a transaction, Mimblewimble employs Pedersen Commitments, which allow participants to prove that the transaction is valid without disclosing the actual amounts involved. This technique helps in preserving privacy by concealing sensitive financial information.

CoinJoin, on the other hand, enables the merging of multiple transactions into a single transaction. This process makes it difficult to trace the origin and destination of funds, further enhancing privacy. By combining these techniques, Mimblewimble provides a high level of privacy for its users.

In terms of scalability, Mimblewimble employs a unique approach called "Cut-Through." This technique allows the elimination of unnecessary transaction data from the blockchain, significantly reducing its size. Instead of storing every transaction separately, Mimblewimble only keeps the essential information required to validate the current state of the blockchain. This approach results in improved scalability as the blockchain grows.

To ensure the security of the protocol, Mimblewimble relies on the underlying security provided by the Bitcoin network. It utilizes Bitcoin's proof-of-work consensus mechanism, making it resistant to attacks and ensuring the immutability of transactions.

Getting Started

To understand Mimblewimble, it's essential to grasp the fundamentals of blockchain technology. A blockchain is a decentralized and distributed digital ledger that records transactions across multiple computers, known as nodes. Each transaction is grouped into a block, which is then added to the chain in a sequential and immutable manner. The transparency of blockchain technology allows anyone to view the transaction history, which brings about concerns regarding privacy.

Mimblewimble addresses this privacy concern by implementing several innovative techniques. One way it does this is by leveraging cryptographic primitives like Pedersen commitments and range proofs to obfuscate transaction amounts. Pedersen commitments enable the hiding of values while still allowing for their verification, ensuring that the total inputs equal the total outputs in a transaction. Range proofs provide a way to prove that the committed values lie within a specific range, preventing the creation of negative or excessively large amounts.

Unique Aspects

Mimblewimble introduces a novel approach to transaction verification called "cut-through." In traditional blockchains, each transaction contains inputs and outputs, resulting in a significant amount of redundant data. In Mimblewimble, cut-through eliminates this redundancy by combining multiple transactions into a single transaction, where the inputs and outputs cancel each other out, effectively reducing the blockchain's size. This approach improves scalability by minimizing the amount of data that needs to be stored and validated by network participants.

Another key feature of Mimblewimble is the use of Confidential Transactions (CT). CT is a cryptographic technique that provides privacy by encrypting transaction amounts. In Mimblewimble, the CT scheme hides actual transaction values, making it impossible for external observers to determine the amounts being transferred. Only the involved parties possess the necessary private keys to decrypt and verify the transaction.

Additionally, Mimblewimble employs a technique called "CoinJoin" to enhance privacy. CoinJoin allows multiple users to combine their transactions into a single transaction with multiple inputs and outputs. This process makes it much harder for external observers to link specific inputs to corresponding outputs, thereby obfuscating the transaction graph and providing a higher level of privacy for participants.


  • Privacy. Mimblewimble offers strong privacy features by obfuscating transaction details. It achieves this through a combination of Confidential Transactions and CoinJoin. Confidential Transactions encrypt transaction amounts. CoinJoin combines multiple transactions into a single transaction, making it difficult to trace individual inputs and outputs. This ensures that transactional information remains confidential, providing enhanced privacy for users.
  • Scalability. Mimblewimble improves scalability by implementing a novel approach to transaction verification called cut-through. In traditional blockchains, each transaction contains a list of inputs and outputs, resulting in a large and growing blockchain size. Mimblewimble addresses this issue by removing unnecessary transaction data through cut-through.
  • Compact blockchain. Due to the cut-through feature, the Mimblewimble blockchain remains compact. It discards intermediate transaction data, resulting in a blockchain that contains only the essential information. This compactness allows for better efficiency in terms of storage and bandwidth requirements.
  • Improved fungibility. Fungibility refers to the interchangeability of individual units of a currency. Mimblewimble enhances fungibility by breaking the linkability between transactions. Since all transactions are combined into a single transaction, it becomes challenging to trace the origin and destination of individual coins. This makes all coins within the network indistinguishable from one another, ensuring that they are equally valued and accepted.


  • Lack of script support. One of the limitations of Mimblewimble is its lack of support for complex scripting languages, such as those found in Ethereum. Mimblewimble focuses on transaction privacy and scalability, sacrificing support for advanced smart contract functionalities. While this limitation may not be a concern for some use cases, it restricts the potential applications of Mimblewimble in certain decentralized finance (DeFi) scenarios that require complex programmability.
  • Reduced transparency. While Mimblewimble provides strong privacy features, it also reduces the transparency of transactions. Since transaction details are obfuscated, it becomes challenging to perform audits or track specific funds within the network. This reduced transparency may raise concerns for regulatory compliance and financial institutions that require transaction visibility for anti-money laundering (AML) and know-your-customer (KYC) purposes.
  • Initial setup requirements. To achieve privacy in Mimblewimble, a process called "transaction cut-through" is employed, which removes intermediate transaction data. However, this process requires all participants in the network to store and validate the entire transaction history during the initial setup phase.
  • Limited interoperability. Mimblewimble's unique design and privacy features can hinder its interoperability with other blockchain networks. The cut-through mechanism and obfuscated transaction details may not be compatible with existing blockchain protocols, making it difficult to perform cross-chain transactions or exchange assets between different networks. This limited interoperability may restrict the adoption and integration of Mimblewimble in larger blockchain ecosystems.