Bitcoin and Grin : A Rise from the Ashes

The Economist 1988

Cover of The Economist Magazine

Bitcoin

As stated above, 20 years after the article which made such an important conclusion for the economy and completed it with such a beautiful cover image, in 2008, a secret software developer named Satoshi Nakamoto emerged and announced that he was working on a new currency — Bitcoin. Bitcoin was revealing a structure that had no precedent until then, promising to work on its own, universal, unstoppable, unchangeable, and completely opposite to the current economic system. Considering the process of revealing such a well-founded project by such a secret developer, it seemed to show us someone who was disturbed by the above-mentioned article and its results because without the lack of fairness and decentralization in the past economic system, both the article in The Economist magazine and Satoshi Nakamoto and the Bitcoin he created would not have existed in our lives.

9–15 January 1988

Grin

Exactly 10 years and 6 days after Bitcoin main net, a new project named Grin published main net, which feels us the birth ambiance of Bitcoin. Although Grin was similar to Bitcoin with its origins, it was also very different from Bitcoin. The difference was that Grin emerged in response not only to the current economic system, but also to a number of features of Bitcoin and the existing cryptocurrency ecosystem. This is because, Bitcoin was launched as a crypto currency that defends privacy and anonymity. However, with the fully open blockchain, it was quite ineffective at ensuring privacy. Although, Bitcoin pointed out the injustice of the old economic system, it missed the point which is the fact that its limited supply and ever-decreasing emissions policy could create a different kind of injustice. At the same time, it involved a great risk that, with monetary emissions constantly decreasing, monetary inflation would reach zero and eventually it would not be clear whether the network would work with transaction commissions only. Also, but instead of finding the solution to these issues, many of the cryptocurrencies that emerged after Bitcoin followed in its footsteps. As a result, in response to all this, Grin coin emerged.

Mimblewimble and Tom Elvis Jedusor

Tom Elvis Jedusor, the secret creator of the Mimblewimble protocol, in his first sentences about the protocol, said that every transaction on the Bitcoin blockchain depends on the previous transaction. Meaning, anyone who wants to join the network must download and verify everything completely from the beginning. He stated that doing this was not only laborious but long-term and space-consuming.

Grin and Ignotus Peverell

Tom Elvis Jedusor disappeared after presenting the idea for Mimblewimble and has never reappeared since then. Two months after Tom, another secret developer, Ignotus Peverell, emerged and announced that he had started making the Grin coin, the first real implementation of Mimblewimble. Now Ignotus had taken over Tom’s flag.

Bitcoin and Grin Justice Basis

It is obvious that each feature Ignotus added to Grin is different from many cryptocurrencies that emerged after Bitcoin. However, the situation is not limited to this. Grin also has a completely different feature from Bitcoin. This feature is the monetary policies which have quite different missions from each other.

Bitcoin’s Justice Basis

Unlike government currencies, Satoshi Nakamoto created Bitcoin with a limited supply monetary policy. With the total supply limited at 21 million btc, the prize distributed is halved every 4 years. Although this policy seems to present a more fair structure compared to state currencies at first glance, we can say that the situation is different from other points.

1. Injecting Half of the Supply in the First 4 Years

Bitcoin’s Supply Model

2. Electronic Cash? Or Precious Metal?

Satoshi Nakamoto introduced Bitcoin as a Peer-to-Peer Electronic Cash system in his white paper where he explained Bitcoin.

3. Can Limited Supply Be Sustainable Money or Investment Tool?

To question whether Bitcoin is sustainable, we can look at the properties of government moneys and precious metals, which are two real examples of sustainability to date.

Gold Mining Production 1900–2014

4. Can Cash Or Precious Metals Be Completely Disappeared?

When Satoshi Nakamoto identified a limited supply of 21 million units in Bitcoin, he was missing out on an unimaginable danger, perhaps for a limited supply cryptocurrency.

5. What Happens When Block Rewards End?

4 year periods
Source
Bitcoin Total Issuance in USD

Grin’s Justice Basis

Ignotus Peverell knew most of what we were discussing about Bitcoin. He summed up most of what we said in just 8 items in a forum post and made us question things.

1. Constant and Unlimited Injection of Supply

The constant and infinitely increasing supply in Grin’s monetary policy makes the amount of Grin distributed the same from day one to eternity.

Bitcoin which injected half of its supply in the first 4 years — Grin which distributes the same amount every year

2. Can Grin Be Both Electronic Cash and Precious Metals?

It is safe to say that Grin, with its unlimited supply and continuous emission, has the potential to be both a precious metal and a cash payment instrument because it has the feature of constantly increasing and unconstant supply that both government coins and precious metals have.

3. Can Unlimited Supply Be Sustainable Money or Investment Tool?

If we speaks of sustainability, we can claim that an unlimited supply might be a better choice because, when we consider silver and gold, which are the longest-lasting sustainable examples in the world, we see that these metals still do not reach the end of their supply and also the quantity mined keeps increasing instead of decreasing.

Source 1Source 2

4. Is It A Problem If The Grins Disappear?

Since the supply of Grin increases unlimitedly and constantly, no matter how much Grin is lost, Grin is unlikely to be harmed because the supply problem will gradually be resolved with new Grins to be produced in the coming years. For a better understanding of the situation, think of 50% of Bitcoin’s supply being lost. While this is an irreversible scenario, if 100% of the Grin supply is lost, this problem can be resolved as new Grins will be produced over time.

5. Block Rewards Fixed and Never Ending

The Destiny Intersections of Grin and Bitcoin

Intersection of 19

Intersection of August 2

9–15 January

9–15 January

Conclusion

Bitcoin was the first cryptocurrency to be born in response to government currencies and tried to be decentralized step. It was very valuable during the period it emerged and for the features it had. However, it is necessary to know that Bitcoin is man-made, and that it may have shortcomings and ultimately, an end. Grin, on the other hand, is a new step that focuses on and tries to address many of the shortcomings in Bitcoin, other cryptocurrencies, precious metals and government currencies.

Minexpert — Cihat M. Ozturk

Note: More will be in the book “SUNRISE OF GRiN”. If you find a message about date intersections or if there is a point in the book that you want me to explain, you can leave a comment without hesitation.

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#Blockchain #Cryptoanalysis #Technicalanalysis #Miningsystems Energy Engineer — Economist(2) madenuzmani@gmail.com

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