What is Mimblewimble?

By  Beluga Research August 17, 2023

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  • Mimblewimble is a privacy-focused cryptocurrency protocol that enhances transaction privacy and scalability through Confidential Transactions and Cut-Through merging
  • It is a blockchain protocol that addresses the privacy and scalability limitations of Bitcoin
  • It uses techniques like Confidential Transactions, Cut-Through and CoinJoin to enhance privacy, reduce blockchain size and increase fungibility
  • Mimblewimble offers advantages such as strong privacy, improved scalability, enhanced fungibility and improved efficiency


Mimblewimble is a privacy-focused cryptocurrency protocol that enhances transaction privacy and scalability through Confidential Transactions and Cut-Through merging. Mimblewimble is a blockchain protocol that prioritizes privacy and scalability.

It was first introduced in 2016 by an anonymous developer under the pseudonym "Tom Elvis Jedusor," which is an anagram for "Je suis Voldemort," and a reference to the Harry Potter series. The protocol's name is derived from a fictional curse in the books that prevents individuals from revealing a specific secret.

A Brief History

Mimblewimble emerged as a response to growing concerns surrounding the privacy and scalability limitations of Bitcoin, the pioneering cryptocurrency. By combining various cryptographic techniques such as Confidential Transactions and CoinJoin, Mimblewimble aimed to address these shortcomings and provide a more private and efficient blockchain solution.

What is Mimblewimble?

At the core, Mimblewimble leverages a unique approach to transaction construction and verification. Unlike traditional blockchain protocols, Mimblewimble does not store all transaction data on the blockchain. Instead, it utilizes a technique called "Cut-Through," which merges multiple transactions into a single transaction, reducing the overall size of the blockchain.

To achieve this, Mimblewimble employs a cryptographic primitive called "Pedersen commitments." These commitments allow for the creation of "blinded" outputs, wherein the value of the transaction is hidden, yet still verifiable. By aggregating these outputs, the protocol ensures that the transaction history remains confidential while maintaining the ability to verify the overall validity of the transaction.

Confidentiality is further enhanced in Mimblewimble through the use of Elliptic Curve Cryptography (ECC). ECC enables the creation of private and public key pairs, ensuring that only the intended recipient can access the transaction details. This cryptographic technique, combined with the Cut-Through mechanism, significantly improves privacy by obfuscating the link between inputs and outputs in a transaction.

Moreover, Mimblewimble introduces a concept known as "transaction kernels." These kernels contain the essential information required to validate the transaction, such as the input and output commitments, but do not reveal any explicit details about the transaction itself. This design allows for the efficient and lightweight verification of transactions, contributing to the protocol's scalability.

Getting Started

To understand Mimblewimble, it is essential to also grasp the fundamental concepts of blockchain technology. Traditional blockchains like Bitcoin store all transaction data on the blockchain, making it visible to anyone who accesses the network. In contrast, Mimblewimble takes a different approach. It leverages cryptographic techniques to enable confidential transactions while maintaining the security and integrity of the blockchain.

Unique Aspects

One of the core features of Mimblewimble is the use of Confidential Transactions. In traditional blockchain networks, transaction amounts are visible to all participants, which can compromise privacy. Confidential Transactions, on the other hand, employ a cryptographic technique called "Pedersen commitments" to hide transaction amounts. Instead of displaying the actual values, Mimblewimble transactions only reveal the sum of inputs and outputs, ensuring that the total balance remains consistent.

To maintain the integrity of the blockchain while obscuring transaction amounts, Mimblewimble employs a concept called "Cut-Through." Cut-Through allows the consolidation of multiple transactions into a single transaction, reducing the overall size of the blockchain. This process eliminates the need to store all transaction history, resulting in a more efficient and scalable blockchain.

Another notable aspect of Mimblewimble is the approach to transaction history. Unlike traditional blockchains that store a complete transaction history, Mimblewimble utilizes a technique known as "Transaction Aggregation." This process combines multiple transactions into a single block, where the intermediary transaction data is discarded. By removing unnecessary data, Mimblewimble ensures that the blockchain remains lightweight and enhances privacy.

Furthermore, Mimblewimble addresses the issue of blockchain scalability through the implementation of the "CoinJoin" concept. CoinJoin allows multiple users to combine transactions into a single transaction, thereby increasing the anonymity of participants. By mixing transactions together, it becomes challenging to trace individual inputs and outputs, enhancing privacy and fungibility.


  • Privacy - Mimblewimble offers strong privacy features by obfuscating transaction details. It achieves this by utilizing a combination of Confidential Transactions and CoinJoin, ensuring that transaction inputs and outputs are not visible on the blockchain. This enhances user privacy and makes it difficult to trace transactions.
  • Scalability - Mimblewimble improves scalability by significantly reducing the size of the blockchain. It achieves this by removing unnecessary transaction data, such as input and output amounts, and only retaining essential information required for validation. This compact blockchain size allows for faster synchronization and reduces storage requirements for network participants.
  • Fungibility - Mimblewimble's privacy features enhance fungibility by making all coins of the same denomination indistinguishable from one another. This means that no matter the transaction history, all coins are considered equal, ensuring that they can be freely exchanged without any risk of being tainted.
  • Improved Efficiency - By eliminating the need to store large amounts of transaction data, Mimblewimble reduces the computational and storage requirements for network participants. This enhances the efficiency of the blockchain network, allowing for faster processing and increased transaction throughput.


  • Lack of Scriptability - Mimblewimble's design sacrifices scriptability to achieve privacy and scalability. Unlike other blockchain protocols like Bitcoin, which support smart contracts and complex scripting languages, Mimblewimble only supports basic transaction functionality. This limitation may restrict the potential use cases and development of decentralized applications (dapps) on the network.
  • Limited Transaction History - The privacy features of Mimblewimble come at the cost of limited transaction history visibility. As the protocol discards unnecessary transaction data, it becomes difficult to audit past transactions or track funds. While this enhances privacy, it may pose challenges in certain scenarios, such as regulatory compliance or dispute resolution.
  • Initial Blockchain Download - When a new user joins the Mimblewimble network, they need to download and validate the entire blockchain history. However, since Mimblewimble removes unnecessary transaction data, the initial blockchain download can be more challenging and time-consuming compared to other blockchain protocols.
  • Scalability limitations - While Mimblewimble improves scalability compared to traditional blockchain protocols, it still faces certain limitations. As the network grows and more transactions are added, the size of the blockchain can increase, potentially impacting synchronization times and storage requirements. Ongoing research and optimization are required to address these scalability challenges.