Mimblewimble is a new protocol that aims to provide greater privacy to users and on which two coins have been implemented:
GRIN: The first prototype of the whitepaper was written in 2016 by a user called Tom Elvis Jedusor (which is the name of Lord Voldemort in the French version of the Rowling series).
Just over 3 months later, another user called IgnoPeverell (Ignotus Peverell, the first owner of the invisibility cloak) proposed the first implementation of this protocol with Grin.
There are 3 main features of Grin that make transactions private:
● There are not any addresses
● The amount is not linked to the transaction
● Two transactions, one that spends the amount of the other, can be joined within a block creating a single transaction, eliminating any intermediate information.
The first 2 properties mean that all transactions cannot be distinguished from each other. So, unless you are participating in the transaction, all inputs and outputs seem totally random pieces of data and cannot provide any information.
Moreover, there are no real "transactions" inside the blocks, instead, a Grin block looks like a single gigantic transaction where all the links between input and output that formed it have been lost.
From an economic point of view, the issuance of Grin differs from that of other Coins and from Bitcoin itself.
While Bitcoin explores a monetary policy that aims at "deflation" with a finite supply, Grin follows a policy that aims at higher inflation and an infinite supply.
The reason is that Grin was born with the aim of being a hypothetical "hard cash" that is, an exchange currency - rather than a store of value like Bitcoin - and for this reason, it needs higher inflation.
Moreover Grin proposes a model in which miners earn on inflation rather than on the fees coming from transactions.
Grin is supported by over 100 developers, many more than its competitors using the Mimblewimble protocol.
BEAM was born in March 2018, about two years after Grin (in active development since 2016), but despite this, thanks to its organizational structure, its Private Sale and its more centralized governance model, it has caught up quickly, to the extent that the mainnet was launched on January 3rd.
The model and features sought do not differ from those of Grin except for some technological choices, and for the fact that Beam has chosen a business model in which the aim is to make profits through a Mining TAX, very similar to that implemented by Zcash.
Beam was the first to implement some additional features - such as the ability to share one's financial situation with a third party - obviously in a completely optional way. Finally, Beam has a smaller number of developers despite a model that allows having funds available to pay its developers. This is probably due to the greater centralization also from the point of view of development.
Although it is very difficult to establish a possible price for a currency that does not yet exist and based on such an innovative protocol, we can establish a comparison with other "privacy-coins".
Using the Comparable Evaluation between Grin, Monero, Dash and Zcash and following the market evaluation of the competitor Beam, we have established a possible capitalization of $300,000,000.
Grin, will reach the inflation levels of FIAT currency (~2.5% INFLATION/year) after 40 years, i.e. in 2059, so if the network does not continue to grow steadily from now until 2059 (following inflation!) the currency will suffer because of its high issuance.
It is estimated that, the future role of privacy coins will go from means of exchange, to parking of liquidity/off-shore.
Grin, despite its streamlined and scalable nature, has a less attractive degree of inflation than solutions such as Monero - which in May 2022 will have an annual rate of less than 1%.
That said, investors should not be discouraged from investing in Grin, the network has high potential, and it is also important to follow the updates of the protocol because they may come out with solutions that encourage the treasurization of the asset.