One of the most hyped coins of late 2018 is a Grin – the cryptocurrency and blockchain, based on the brand new hashing algorithm, called MimbleWimble. Why it’s so popular and how will it change the habitual Proof of Work mining?
Despite the frivolous name, MimbleWimble hashing algorithm has more chances to become a Bitcoin killer than all other competitors. The secret is that this algorithm provides users with an incredible level of privacy and shows enormous scaling potential.
Let’s have a quick look at the new blockchain, algorithm, and cryptocurrency.
MimbleWimble is a Proof of Work-based hashing algorithm, built on three main ideas: privacy, scalability, and fungibility. What does it mean? Grin network is keeping up the highest standards of users’ anonymity. Confidential Transactions ensures two points simultaneously: prevent double-spending and hide an actual amount of transactions.
Blinding Factors, acting as a proof of ownership, mirrors ZCash’s and Monero’s zero-knowledge proof and RingCT, so from the privacy point of view, Grincoin is even better than its ancestors. Addresses here are not involved in transactions, and all transactions’ data visible only for participants.
Have you ever heard about “sharding” in Ethereum? Grin and MimbleWimble already implemented it, so each block contains not the whole transactions, but some random inputs and outputs. Such a mechanism allows validating a huge number of transactions at the same time, making Grin blockchain one of the fastest networks in the field.
Scalability of the Grin blockchain in ensured with MimbleWimble so-called “Cut&Through” feature, which lies in the elimination of old and unnecessary transactions, so the overall blockchain size is keeping more or less stable and won’t grow significantly.
In view of the above, it’s obvious, that Grin is not just another hype-coin, but is a very well-thought-out product, with its own niche and brilliant perspectives for development in the future.