The Mimblewimble Privacy Coin GRIN Listed on KuCoin Crypto Exchange
KuCoin, a crypto exchange based in Singapore, recently announced that it was adding various trading pairs for the newly launched GRIN privacy coin. The trading pairs for GRIN on KuCoin are GRIN/ETH, GRIN/BTC, and GRIN/USDT. The buying of these pairs began on January 24 at 17:30 (UTC+8) and Selling began on January 24 at 18:00 (UTC+8). It was also announced that withdrawals would begin on January 26 18:00 (UTC+8).
GRIN and Mimblewimble
Grin is the second privacy coin from the Mimblewimble protocol. This was after the recent launch of the BEAM mainnet in early January. The tech leads to the creation of private transactions and a scalable blockchain, which is quite small compared to other existing blockchains.
The new GRIN coin was put under the microscope after its price fluctuated wildly after launch. It fell from a high of $261.65 and fell to $4.51 in just a short while. This led to the Grin market cap dropping to just $3.9 million.
The Price Drop
The sudden drop was partly due to the design of GRIN. It currently has an infinite coin supply, which has a linear supply schedule. Thus, the early days of mining will lead to a growing supply of the coins by a huge percentage. Thus, once inflation has leveled off, prices will stabilize. Grin is also listed on Hotbit. Those in the US who wish to buy Grin can do so on KuCoin.
Mimblewimble is a protocol that was created by a user who has thus far chosen to remain anonymous. The anonymous creator left a whitepaper which claimed that if it were implemented on Bitcoin, it could enhance its privacy.
The Mimblewimble Transactions
The transactions are derivations of other types of transaction known as the confidential transactions. Adam Back, a former BTC developer, conceived them. These transactions allow the encryption of the BTC amount being sent using blinding factors.
The blinding factors are random values that encrypt the BTC amounts during a transaction. A blinding factor that is picked should encrypt the amount sent but should not affect the output or input of each transaction.
In the confidential transaction, only two parties are aware of the amount being sent. Onlookers are not able to tell what is going on. However, the onlookers will still be able to verify the transaction. To do this, they will only need to check whether the inputs and outputs numbers are the same. It ensures that BTC will not be created from anything.
Mimblewimble works in a similar manner but the recipient randomly selects the range of blinding factors that are picked by a sender. The receiver can then use the blinding factor as the proof of ownership. This then allows them to spend the BTC.
The possible space saving and privacy offered by Mimblewimble is obvious. This is achieved by getting rid of unnecessary transaction data from the blockchain. Besides that, it will help create true anonymity by obfuscating outputs and inputs and getting rid of public addresses. This is as opposed to the current pseudonymity offered by BTC.