When Bitcoin came on the scene for the first time, a lot of people mistakenly thought it was an anonymous digital form of currency. Unluckily, criminals learned the hard way to use it and that it was easily traceable.
Since then many privacy coins have come to light, helping the general population to transact without leaving their financial fingerprints on a technology called blockchain. However, many of them need a lot of computational resources.
Mimblewimble, a new protocol, has a way of creating confidential transactions that take less computer power, making it easier to have many more people using coins built on it.
Beam is one of the two popular coins being built using Mimblewimble technology. Where Grin has taken the approach of development by donation, Beam is going the conventional VC-backed startup route. Also, it’s making an explicit effort to target the business.
Alexander Zaidelson, Beam CEO, said –
“We all believe a currency must be confidential. If we want something to be used as a monetary instrument, confidentiality is of paramount importance, because nobody likes for their finances to be exposed — not private people, and definitely not businesses.”
Since its launch, Beam has particularly been used by cryptocurrency enthusiasts, traders and miners.
“Zaidelson wants to push Beam as a means of payment for various services starting from privacy-oriented stuff like VPNs and eventually more. We’re now working on integration with payment processors so that merchants can start accepting Beam.”
While he acknowledged that cryptocurrency generally isn’t used much for payments, he said –
“Later down the road, we also want to be able to enable businesses to accept confidential currency and eventually be able to pass AML tests for that currency if they desire to do so. So the bigger lost-term vision is to create a layer that is the best confidential cryptocurrency, but then allows more layers for people who want that to create some history also to pass AML and present audit.”
On being asked ‘why a business would wish to use a cryptocurrency with a value that fluctuates rather than a stable coin?’ He said –
“That’s one of the bigger problems in the crypto space, one of the things that’s hurting adoption. Beam is now a cryptocurrency, but the next step in development is turning Beam into a platform, by enabling people to issue other kinds of tokens on the platform, and some of those tokens could be stable coins.”