Beam

BEAM Cryptocurrency: An In-Depth Overview

What is BEAM (BEAM)?

BEAM (BEAM) is a privacy-focused cryptocurrency launched in January 2019. Based on the innovative Mimblewimble protocol, BEAM was designed to address privacy issues found in many public blockchains. Unlike transparent blockchains like Bitcoin where transaction details are visible to everyone, BEAM creates a system where financial privacy is prioritized while still maintaining scalability and fungibility.

BEAM represents the first implementation of Mimblewimble as a complete cryptocurrency, focusing on confidentiality, scalability, and usability. The project aims to create "sound money" that preserves your privacy while complying with regulatory requirements.

How Does BEAM (BEAM) Work?

BEAM (BEAM) operates on the Mimblewimble protocol, which fundamentally changes how blockchain transactions work compared to Bitcoin and other traditional cryptocurrencies. Here are the key technical components:

Mimblewimble Protocol

The Mimblewimble protocol allows BEAM to implement confidential transactions where the amounts transferred are hidden from public view. It uses cryptographic primitives like Pedersen Commitments and Confidential Transactions to obscure transaction values while ensuring mathematical validity.

Dandelion Protocol

BEAM implements the Dandelion++ protocol for network-level privacy, making it difficult to trace transactions back to their origin by routing them through multiple nodes before broadcasting to the entire network.

No Addresses

Unlike most cryptocurrencies, BEAM doesn't use permanent addresses. Instead, it employs a wallet-to-wallet communication protocol where transactions are created through a secure communication channel between the sender and recipient.

Transaction Aggregation

The blockchain compresses transactions by combining inputs and outputs, significantly reducing blockchain size compared to other cryptocurrencies.

BEAM Mining and Staking

Mining BEAM

BEAM (BEAM) is a Proof-of-Work (PoW) cryptocurrency that can be mined. Initially, BEAM used the Beam Hash algorithm, which was ASIC-resistant. However, in 2021, BEAM transitioned to the BeamHash III algorithm with its Eager Electron hard fork. This allows miners to use GPUs to validate transactions and secure the network in exchange for BEAM rewards. The mining reward follows a deflationary model, with periodic halvings similar to Bitcoin.

Does BEAM Offer Staking?

BEAM does not offer traditional Proof-of-Stake (PoS) staking. However, BEAM has implemented a feature called "BEAM Confidential Assets" which allows for the creation of tokenized assets on the BEAM blockchain. Through this feature, some BEAM holders may participate in DeFi-like activities similar to staking, though this is distinct from traditional staking mechanisms.

What is BEAM (BEAM) Used For?

BEAM (BEAM) serves several important functions within its ecosystem:

Private Transactions

The primary use case of BEAM is for private, confidential transactions. Users can transfer value without revealing transaction amounts or their identity to the public.

Confidential Assets

BEAM's blockchain supports the creation of confidential assets (tokens) that inherit the privacy properties of the BEAM blockchain.

Atomic Swaps

BEAM supports atomic swaps, allowing users to exchange BEAM for other cryptocurrencies like Bitcoin without using centralized exchanges.

Network Fees

BEAM tokens are used to pay transaction fees on the network, incentivizing miners to process and validate transactions.

BEAM Distribution at Launch

BEAM had a fair launch without an ICO (Initial Coin Offering) or premine. This means that all BEAM tokens came into existence through mining rewards. However, BEAM implemented a Treasury where 20% of all mined BEAM goes to the BEAM Development Fund for 5 years, supporting the core team's development efforts. The maximum supply of BEAM is capped at approximately 263 million tokens.

Additional Features of BEAM (BEAM)

Opt-in Auditability

While privacy is the default, BEAM allows users to selectively disclose transaction information to third parties like auditors or tax authorities when needed.

Compact Blockchain

Thanks to the Mimblewimble design, the BEAM blockchain requires significantly less storage than comparable blockchains, making it more sustainable long-term.

Scriptless Scripts

BEAM implements advanced cryptographic techniques allowing for smart contract-like functionality without compromising privacy.

BeamX DAO

The BEAM ecosystem includes a Decentralized Autonomous Organization (DAO) called BeamX, which governs the development of DeFi applications on the BEAM blockchain.

Trading BEAM (BEAM) with Cryptohopper

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