VCash combines the characteristics of Bitcoin with Mimblewimble technology. It inherits Bitcoin’s distribution mechanism and leverages on Grin’s privacy protocol by using Mimblewimble implementation.
VCash adopts Merged Mining to allow mining of VCash and Bitcoin simultaneously with the same ‘Proof-of-Work’ (POW) algorithm. Blockchains that utilize the POW algorithm are susceptible to the risk of a 51% attack on the network. However, Bitcoin has the largest number of miners worldwide and widely distributed hashing power, which significantly lowers the risk of a 51% attack. With Merged Mining, VCash is able to leverage on Bitcoin’s hashing power with the support from Bitcoin mining pools. Therefore, VCash possesses the same level of security as Bitcoin and launching a 51% attack on the Vcash network would be very costly and, therefore nearly impossible.
The goal of VCash is to be the most private and secure chain for storing values.
Genesis Block: 2019-04-04
Max supply: 21,000,000
Block time: 10 minutes
Block Reward: 50
Halving: 4 Years
What is Mimblewimble?
It is a technology that hides personal information using elliptic-curve cryptography which requires smaller keys than other cryptography types.
If a network uses the Mimblewimble protocol, there will not be any addresses created, and the network’s data storage is highly efficient because it only requires about 10% of the data storage requirements compared to the Bitcoin network. This makes Mimblewimble highly scalable, significantly faster, and more decentralized.
Why can’t Bitcoin be Anonymous?
Bitcoin discloses three secrets about every transaction: Sender’s address, Amount of coins sent, and Receiver’s address.
Any reliable money system such as gold, cash, or Bitcoin needs to fulfill two basic requirements. First of all, It needs to act as a unit of account, this means there needs to be a way to verify that the same amount of money that left ‘Wallet A’ is the same amount that ‘Wallet B’ receives, this ensures that no extra money is created during the transaction. Secondly, only the owner of the funds can start a money transfer, this means that no one else except for you manage the funds.
Bitcoin guarantees that this theory is consistent by assigning a public address and generating private keys, then every transaction will have a signature which certifies that the person that holds the funds is actually the one starting the transaction.
In contrast to Bitcoin’s methodology, which a sender can start a transaction, in this case, the sender and the receiver both participate in the creation of the transaction.
By leveraging Mimblewimble’s protocol, VCash can create an anonymous transaction by hiding the public keys and only disclosing a factor of the information necessary for the transaction to be generated and the private keys to be confirmed. It will also hide the amount sent using the same principle mentioned above.
Elliptical Encryption Curve Technology (ECC)
Cryptography is one of the basic components of cryptocurrencies. VCash uses the discrete logarithm problem which is one of the main assumptions of cryptography because it makes signatures more secure and public keys more efficient.
Mimblewimble uses the same algorithm for establishing public key cryptography as Bitcoin named Elliptical Encryption Curve Technology (ECC) which has been in use since 1985.
One of the main advantages of ECC is that it can use a smaller key to provide higher levels of security compared to any other encryption method, it can be seen on the RSA encryption algorithm.
Furthermore, the ECC 164-bit key generates a security level that is equal to the privacy strength provided by the RSA 1024-bit key, and though the calculation is smaller, the processing speed is faster, it occupies less storage space and transmission bandwidth. The certificate also uses a 256-bit elliptic curve cipher, which proves how secure the encryption is.
Elliptical Encryption Curve Technology (ECC) Graph
A Deeper Look Into the
‘Merge Mining’ Mechanism
According to the technical research, there is no loss of computing power in the process of mining two types of tokens.
VCash uses the Bitcoin network as a parent chain, while VCash remains as the auxiliary chain. Although the two chains have different difficulties, it allows the network to build blocks as long as the parent chains provide a higher difficulty than the auxiliary chain.
The main reason is, the mechanism will use the blocks of the parent chain and will put them into the two blockchains, creating two different blocks at the same time, creating this process called ‘merge mining’.
In some instances, when a computer is mining two different tokens, it can have an impact on the calculation, this creates conflicts in the network and reduces stability which translates to increased volatility on the computing power affecting the income.
Not to mention that as the graphics card power consumption rises, the temperature increases outstandingly, and can reduce the life of the internal chip. The merger mining mechanism is not affected by this at all, because VCash adapts to the algorithm of the parent chain, not having any influence on the parent chain, therefore, processes like hash calculation will not increase power consumption because it compresses the results into an assigned task that is shared between the two chains.
As Satoshi Nakamoto himself mentioned on the original Bitcoin whitepaper, the privacy control under the UTXO model is very limited because the transactions between parties are recorded on the Blockchain and cannot be deleted, although it makes a good case for security it limits freedom of usage because once a person’s address is exposed, all the transactions between said address and other users will not be anonymous anymore.
On the other hand, Bitcoin’s protocol and mining mechanism through the Proof-of-work (POW) consensus algorithm have proved to be resilient over the last decade due to the level of decentralization. This means that Bitcoin’s Blockchain is the best option to incentivize users to confirm transactions through mining. That being said the only problem that Bitcoin is facing for certain users is a lack of privacy, which can affect the liquidity of the token in the long run.
This is where MimbleWimble technology comes into place, is extremely reliable and simple because it is based on fundamental mathematical calculation laws. Other coins such as Grin that use this technology and solve the privacy concern mentioned above, the only problem with this model is that Grin faces adoption resistance due to the linear coin delivery model.
VCash aims to solve this issue by combining both ideas into one. Merging into one the advantages of both Bitcoin and Grin. While combining the economic incentive of Bitcoin, the hashing power, security against 51% attacks, and mining community of the Bitcoin’s Blockchain; as well as the privacy layer provided by the Mimblewimble protocol.
This is why VCash can be used as a medium of exchange for certain use-cases where the sender will not want their information revealed, reasons might be for security if a person is a high-net-worth individual, a political refugee, or simply doesn’t want to share the information for personal reasons specially in this age of increasing digital control.
Lastly, compared to other ‘privacy’ coins, VCash is not a company and doesn’t have any public persona that can be targeted as a leader of this protocol, very much like Bitcoin this technology and uses are up to each individual.