Beam Best-in-class Confidential Cryptocurrency

1.

Beam
Best-in-class Confidential Cryptocurrency
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2. The world of Crypto today

What was Satoshi’s dream
A better version of money
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3. What was Satoshi’s dream

So what’s the problem?
- I want to be only with you
- So what’s the problem?
- What do I do with the
others?
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4. So what’s the problem?

Indeed, what do we do with the others
Blockchain Explorer
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5. Indeed, what do we do with the others

Etherscan
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6. Etherscan

Blockchain Analytics Companies
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7. Blockchain Analytics Companies

Now, let’s imagine it is your bank account
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8. Now, let’s imagine it is your bank account

Why do we need confidentiality?
First, I am a good guy…
Second, isn’t first
already enough?
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9. Why do we need confidentiality?

Confidential Cryptocurrencies
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10. Confidential Cryptocurrencies

Enter Beam
A new cryptocurrency based on Mimblewimble protocol
PoW
consensus
Decentralized
Permissionless
Deflationary
• Not a fork. Original work implemented from scratch in C++
• Development started in March 2018
• Mainnet launched on 01/03/2019, on the 10th anniversary of Bitcoin
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11. Does size really matter?

Mimble what?
A new blockchain protocol
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12. Enter Beam

• Published in July 2016
• Author - Tom Elvis Jedusor (Voldemort)
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13. Mimble what?

Mimblewimble
?
No Addresses
Sender, Receiver
and Amounts are
not visible
No history on
blockchain
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14.

Beam Blockchain
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15. Mimblewimble

UTXO Model
• Well, there aren’t really any safe deposit boxes…
• Meet Pedersen Commitment
Blinding Factor
Value
P = r · G + v·H
EC Generator Points
© 2019. Beam Sovereign Technologies. Strictly Confidential.
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16. Beam Blockchain

Creating a Transaction
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17. UTXO Model

Creating a Transaction
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18. Creating a Transaction

Wait, how do the connect?
Beam SBBS – Message Board for Wallets
• Encrypted
• Distributed
• Persistent
This is an SBBS address
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19. Creating a Transaction

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20. Wait, how do the connect?

Creating a Transaction
Does it sum to zero
Are all the numbers positive
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21. Creating a Transaction

Creating a transaction
The blockchain only stores the current state
Resulting size – 3-10 smaller than Bitcoin
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22. Creating a Transaction

Transaction Cut-through
Alice
Bob
Pi = r1 · G + v·H
PO = r2 · G + v·H
(r2 - r1) · G
PI = r2 · G + v·H
PO = r3 · G + v·H
(r3 – r2) · G
Bob
Carol
• Same repeated for all the blockchain
• Intermediary states removed –keep just current state of UTXOs
• Result – 3-10 times smaller than Bitcoin
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23. Creating a transaction

Network-level Anonymization
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24. Transaction Cut-through

Dandelion++
• Probabilistic
Forwarding
• Decoy outputs for best
privacy
Fluff Phase
T1+…+Tn
T1+T2+T3+T4
Stem Phase
T1+T2+T3
T1+T2
T1
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25. Network-level Anonymization

Current status
Over 1.4M transactions
400K(?) GPUs
Accepted in dozens of online stores
Beautiful and usable wallets for all
platforms
• Atomic Swaps
• In the works:
• Hardware wallets
• Lightning
• One-sided Transactions
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26. Dandelion++

Some Highlights
One-sided payments
Trezor T
Laser Beam
No need to be online
Recipient creates a set of
UTXOs with compensatory
kernel
Sender can create transaction
without Receiver participation
Lightning-like payment
channels
Fast payment, no fees
Routing – at a later stage
Pull request submitted
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27. Current status

Beam Releases in 2019
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28. Some Highlights

Beam Hard Fork – August 15 2019
Beam Hash I -> Beam Hash II
Based on EquihashR - modified Equihash n=150, k=5
Memory Requirement: approx. 3.2Gb, same as Beam Hash I
Better Energy Efficiency, more sols/sec
• MAKE SURE TO UPGRADE ALL THE SOFTWARE BEFORE Aug 15
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29. Beam Releases in 2019

Beam and Grin
Protocol
Emission
Governance
Roadmap
Usability
Privacy
Mimblewimble
Mimblewimble
Capped
Inflationary
Company->Foundation->Community
Community
Strong public roadmap
No formal roadmap
I2P, Addressing, BLS research.
Full UI for all platforms
Mostly command line
MW+Dandelion+Decoy Outputs
MW+Dandelion
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30. Beam Hard Fork – August 15 2019

Problem solved?
Confidentiality
+
Scalability
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31. Beam and Grin

Our reality
IRS
Bank
Auditors
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32. Problem solved?

A digital currency must be
Confidential
Scalable
Compliant
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33. Our reality

And not just currency
Permissionless Digital Cash
Confidentiality
Stablecoins
Security Tokens
Derivatives
State-owned Digital Cash
All require
Scalability
Compliance
Enterprise Use Cases
And more..
Today: Pick Any One
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34. A digital currency must be

Opt-in Compliance in Beam
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35. And not just currency

What next?
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36. Opt-in Compliance in Beam

Confidential Assets
• An Asset on Beam is represented by a Pedersen Commitment:
• P = v*H + r*G
• H and G are EC points known to everyone, v is Value, r is the
secret key
Confidential Asset Metadata:
• Confidential Assets are issued by choosing a new H
Total supply
• Transactions are processed similarly to the Native token
Emission schedule
• New Assets can be issued by anyone for a small network fee
Certificate of the Issuer
Name
Description
Issuer’s public key
Address of Contract server
Authorization Signature
© 2019. Beam Sovereign Technologies. Strictly Confidential.
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37. What next?

Bridges
Smart Contract on ETH
The process
Issuance Server on Beam
1. Assets are locked in a
smart contract on
foreign network
2. The Bridge issues
matching assets on
Beam
3. Asset is freely and
confidentially traded
Use cases: stablecoins, utility tokens, NFT
© 2019. Beam Sovereign Technologies. Strictly Confidential.
4. Holder of the asset can
send it to Bridge and
burn it, releasing the
foreign asset
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38. Why and What

Oracle-based Smart Contracts for STOs and more
The process
1. Issuer registers a new Confidential Asset class
2. To trade the asset, A and B create a transaction
3. They attach relevant info (contract, KYC, etc.) and send
to Issuer
4. If approved, the Issuer produces signs the transaction
with its private key
5. Nodes validate the transaction and presence of the
Authorization Signature
© 2019. Beam Sovereign Technologies. Strictly Confidential.
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39. Confidential Assets

And, one more thing
© 2019. Beam Sovereign Technologies. Strictly Confidential.
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40. Bridges

Get Beam Wallets Now
Get your Beam coins:
• In Beam Wallet, click “receive”
• Copy your address
• Connect to @beambbot on Telegram
• Type /faucet <your address>
© 2019. Beam Sovereign Technologies. Strictly Confidential.
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41. Oracle-based Smart Contracts for STOs and more

Thank you!
https://www.beam.mw
https://t.me/BeamPrivacy
https://medium.com/beam-mw