What is BEAM coin: detailed information
Beam is a very promising project that allows users to transfer money safely and confidentially. It managed to attract a lot of attention from users and investors. Beam is a cryptocurrency based on Mimblewimble token that is focused not only on confidentiality but also on how it is scalable. A lot of companies try to achieve this because blockchains become bigger, and people need a lot of time to perform operations.
How promising is this project, and are there any prospects for it? Today, we are going to describe all advantages and disadvantages of this coin and answer the most frequent questions in detail. For example, how to use this cryptocurrency and how to make transactions with it safer.
What is BEAM cryptocurrency?
BEAM is a relatively new cryptocurrency launched in 2019. This coin was created to be a very good alternative to famous coins such as ZCash and Monero and compensate for all their disadvantages. Creators added new interesting features that can make it competitive. Let’s describe them in detail:
- Protection of confidentiality. This is the most important feature of this cryptocurrency. Other tokens require a special request to make transactions confidential. The main advantage of BEAM is the fact that we have this level of protection by default. Only the user can say who can get access to the data. All personal data is in the money owner’s hands. Beam also presented confidential assets and transactions. This is an additional feature of this cryptocurrency. It allowed generating a lot of different types of cryptographic digital assets, such as debt, etc. Also, people can generate new coins and exchange them on a special platform.
- Compact blockchain. It helps to solve problems with scaling. Old data is deleted. It helps to decrease the level of how hard it is to calculate everything necessary to perform transactions. All transactions are carried out according to the real needs of the network. Also, it helps to decrease the cost of calculations, and this fact also affects how scalable the network is in a good way. BEAM network supports different types of transactions thanks to Scriptless Script technology.
- Mimblewimble technologies. They are based on the Bitcoin protocol but with additional confidentiality. The Mimblewimble protocol supports generating a masking factor while transactions are performed. Mimblewimble technologies can create additional safety without additional problems with performance. This is the greatest advantage of this token.
This protocol also optimized blockchain using the technology that saves almost all last transactions. It helps to synchronize nodes faster. The protocol needs to check only connected data, not the whole blockchain. The speed of blockchain growth is lower. Due to this, nodes work more effectively. This fact increases the overall decentralization of the network.
What are confidential transactions?
The main advantage of confidential transactions is the ability to hide any information that a person wants. Only the sender and receiver know what information the transaction has. Special encryption technologies are used to reach this goal. Also, there is a special mechanism of rights confirmation when people want to spend coins. Despite all existing cryptocurrencies, BEAM tries to change the coin registering system. The rights of the owner of a token are confirmed only using the special factors and values. Blockchain is used for keeping only a commitment that is relevant for a certain wallet.
Also, people can generate new addresses for receiving money from each transaction. It increases the level of confidentiality of transactions more and more. The Dandelion Protocol allows one more level of privacy protection. This method of creating confidentiality is also present in ZCoin.
As we see, this cryptocurrency has many levels of protection, and the ones described above aren’t the only ones. There is one more method of supporting confidentiality – Secure Bulletin Board that allows limiting protected messages between wallets even if they aren’t online simultaneously.
Additional features and mechanisms
If we want to say more about this cryptocurrency, we can’t say everything in a few paragraphs because there are a lot of features that this cryptocurrency has. Let’s describe some in detail:
- The biggest amount of coins is 263 million BEAMs because creators don’t want to create a deflation of the price. It looks like Bitcoin, and this is a great feature.
- The starting reward for mining BEAMs is 80 coins. Every four years, the reward is decreasing two times. When the reward becomes zero, new tokens won’t be generated.
- Reward model is similar to what the ZCash has. A part of the reward is transferred to a special wallet, and these coins are paid back to the person who generates these coins less 25%. This is a commission for transactions that the developers get.
- Previously, the BEAM project was financed by venture capitalists, and a huge part is influenced by the BEAM foundation.
The BEAM foundation is looking for partners that can invest in the project or help to develop their business.