MimbleWimble GRIN Coin – Fundamental Analysis – Better than Bitcoin?
In this article, we take a deep dive into the fundamentals of Grin – an exciting cryptocurrency implementing the MimbleWimble blockchain.
On crypto twitter, you may have seen the cashtag $GRIN. Everyone was posting about $GRIN on social media, and the cryptocurrency pumped %50 from $10 to $15 in less than a day. Naturally, my curiosity led me to learn more about the cryptocurrency and from what I’ve uncovered, I’m intrigued.
What is Grin?
If you have been following Bitcoin for the last year or so, you are probably familiar with its two most prominent issues: Privacy and Scalability. To understand how Grin addresses these issues, you must first enter the Wizarding World of Harry Potter and Hogwarts. That’s right…Harry Potter.
Grin is a fascinating project aimed towards solving the inefficiencies of Bitcoin with the implementation of a MimbleWimble blockchain. In Harry Potter, Mimblewimble is a curse useful in dueling that ties the target’s tongue in a knot, silencing its victim. Relating to the real world, the MimbleWimble protocol essentially prevents blockchains from revealing personal information about the user.
“I call my creation Mimblewimble because it is used to prevent the blockchain from talking about all user’s information” – Tom Elvis Jedusor
So, how does MimbleWimble cast its spell?
How Does MimbleWimble Work?
To first understand how MimbleWimble works, we must comprehend information Bitcoin reveals. Bitcoin blabs three secrets about every transaction:
1) Sender’s address
2) Amount of coins sent
3) Receiver’s address
Unlike Bitcoin, Mimblewimble has found a way to validate transactions while keeping the address and amount transacted information hidden. Grin has no amounts and no addresses at all. It hides where a newly created trade originates by relaying privately among peers before announcing to the public network. The concept implemented by MimbleWimble is similar to zero-knowledge proofs and RingCTs used by Zcash and Monero.
Using a method called cut-through, MimbleWimble deletes old transactions on the blockchain, thus reducing its size drastically to address scalability issues.
Who is Involved with MimbleWimble and Grin?
On July 19th, 2016 a person operating under the pseudonym “Tom Elvis Jedusor” shared the whitepaper for MimbleWimble. If you are a Harry Potter fan living in France, then you would recognize Tom Elvis Jedusor is the equivalent of Voldemort’s real name in French.
After Tom Jedusor proposed the blockchain protocol, excitement quickly grew among Bitcoin and privacy supporters. A few months later a new and improved version of the MimbleWimble whitepaper was released by a mathematician with Blockstream, Adam Poelstra (no Harry Potter reference?). Some have suggested the author of the original MimbleWimble Whitepaper is Greg Maxwell, a colleague of Poelstra at Blockstream and known Harry Potter fan.
Grin is the first implementation of the MimbleWimble blockchain and began coding in late 2016 with a volunteer-based development team.
Fundamental Analysis of Grin
In this section, I analyze the fundamentals of Grin to determine the strength of the project and attempt to provide a valuation. Although Grin has been live for less than a month, it is interesting to see how the project is performing. I like using Fundamental Analysis because it reveals if an investment is worthy of long-term capital allocation, as well as the intrinsic value drivers.
I examine the following:
1) White Paper
2) Decentralization Edge
3) Valuation
4) Community & Developers
5) Relation to Digital Siblings
6) Issuance Model
7) Operating Health of Network
Remember, it is always important to do your own research (DYOR) before investing in any cryptocurrency project.
To continue reading, check out the article:
https://walkthewire.blog/mimblewimble-grin-coin-fundamental-analysis/
I would love to hear your comments!
What do you think of MimbleWimble or Grin? Do you think it has the potential to overtake power projects such as Monero or Zcash? Let me know!