Grin crypto will have you grinning at your PC when you realise what it has to offer. With significant focus on privacy, the developers behind Grin crypto envisioned Grin being used by people from all walks of life; with no restrictions on culture, skills, borders or access. If you haven’t heard of Grin crypto or don’t know much about it, hang on, let me introduce you.
What is Grin crypto?
Grin crypto is a developing cryptocurrency project that strives to develop and resolve some setbacks in the existing Bitcoin network/ blockchain. It focuses mainly on privacy followed by scalability and fungibility. An interesting fact about Grin is that it has no transaction history, no fixed supply no address among other aspects; so how can it be classified as a cryptocurrency? How does it work? Mimblewimble! Let me explain!
From the Harry Potter series that most of us know, the word ‘MimbleWimble’ is a spell that was cast to bind someone’s tongue and stop them from talking about a particular subject or casting another spell. Therefore, in this case, it refers to the anonymity of all recipient, sender and transaction data; so much so that it cannot be seen simply by having a look at the blockchain. These features that Mimblewimble possesses making it one of, if not ‘the’ most privacy-based ledger ever developed for any cryptocurrency.
How does MimbleWimble work to make Grin Crypto possible?
Even though Grin crypto has no addresses and the transaction information is completely hidden, validation still needs to take place. MimbleWimble uses the Elliptic Curve Cryptography properties to base their transaction on the verification of zero sums as well as ownership of private keys. Therefore to verify transactions the total output minus the total input of transactions must be equal to zero. When the transactions are verified and everything balances out then the transactions will be forgotten forever.
Moreover, the maximisation of privacy is done by privately routing transactions between peers and then notifying the network after that. Therefore no one will know when I send you 100 Grin cryptos for example. Furthermore, rather than having addresses, any payments are forwarded to IP locations or HTTP as file transactions.
Grin and Beam
Beam and Grin are the two major implementations of the MimbleWimble so far. However, MimleWimble may be the only thing these two have in common. Otherwise, they have their differences. For starters Grin is community-driven. Therefore the work done by developers is voluntary; whereas, beam cares more about getting things over and done with so they hire developers and collect VC funds.
Positive aspects of Grin crypto
1. Grin is highly scalable because it can verify transactions without having to store a lot of information on the blockchain. Moreover, MimbleWimble has a lot of potential as it protects transaction data from third parties.
2. Grin is still developing and is still fairly new, but it has managed to build a good community creating exposure for itself in the cryptocurrency world; leading to it being listed on major exchanges such as Poloniex and Bittrex
3. Grin has straightforward token economics that guarantees the yearly decrease in inflation. Resulting in a concrete monetary policy that will be difficult to change in the future.
4. The developers working on Grin are highly competent and constantly active. The Grin GitHub has up to 121 contributors working on the project.
Negative aspects of Grin crypto
1. Grin is very different from other tokens, and its decentralised nature may lead to difficulties in updating the blockchain in future.
2. Since Grin crypto relies on donations for its developers to work on the project, if at some point the donations stop coming in; there is a possibility that the developers will opt to leave the project and go to where there is a better funding system.
3. There is a lot of competition in the privacy coin sector, with coins such as Zcash and Monero. These cryptos already have more developed communities and are at an advantage; which poses a threat for Grin crypto.
4. Grin crypto may find it very hard to be successful as a privacy coin as there is still great uncertainty in the future of privacy coins.
The Harry Potter themed Cryptocurrency is one of the very first implementations of MimbleWimble; and although it is still quite new, it has shown a lot of potential and growth. Nevertheless, others will see it as a complete joke, and others believe it will be the saviour of Satoshi’s original vision. Can Grin crypto give crypto-fanatics something to smile about? Only time will tell!