Groestlcoin project purpose and description
What is Groestlcoin?
The entry of blockchain technology into society marked an important point that would change the entire world. Though Satoshi Nakamoto targeted the finance sector with Bitcoin, it was only the beginning before the desirable traits of decentralization spread to other areas.
A few years after Bitcoin launch, new digital coins started entering the market in record numbers. By mid-2018, the number of cryptocurrencies had reached over 1600. One of these digital currencies was Groestlcoin that was launched in 2014.
- A closer look at Groestlcoin
Groestlcoin is a cryptocurrency and a decentralized blockchain platform created by a person only known as Gruve_P in 2014. As a coin dedicated to providing optimal privacy, nothing much is known about Gruve_P or his background.
To understand how Groestlcoin came about, it is important to look closer at the events that preceded it. In reality, the coin started way before Bitcoin was launched. In 2007, the US National Institute of Standards and Technology (NIST) held a hash competition that was targeted at developing a new hash function referred to as SHA-3.
Though the contest was won by a group referred to as Keccak, one of the finalists was Groestl. It is the Groestl cryptographic model referred to as Groestl-0 that was used to build the Groestlcoin.
Unlike the SHA-2 and SHA-3, the Groestl algorithm uses a tool referred to as the wide pipe that is based on Merkel-Damgard construction (a system of creating collision-resistant cryptographic hash functions from one-way compression functions). This was the technology that the Gruve_P used to work on reliable solutions to address issues in the crypto niche.
- The Groestlcoin coin (GRS) and its performance in the market
GRS coin is one of the coins that have demonstrated an impressive show in the market since launch. Between April 2014 and September 2018, the value of Groestlcoin grew by more than 24,000%. This implies that if you invested some money in the coin around the time of inception, the growth on investment would have been 24,000%.
Between launch in April 2014 and April 2017, the price of GRS remained between $0.002 and $0.007. But things changed in 2017 when the price took a bullish turn reaching $0.1 in mid-June 2017.
The bullish trend continued in the remaining part of 2017 breaking through the $1 mark early in December and edging up further to $2.25 in December 2017. This was approximately 1,100,000% growth from the starting price and the highest mark in its history. But this impressive growth did not last.
Between December 2017 and April 2018, the price shot down to $0.6 before rising to $1.5 early in May and then falling to $0.5 by close of September 2018.
What is the problem that Groestlcoin Solves?
When Groestlcoin was created in 2014, the blockchain industry was going through major challenges that have persisted to date. Though the decentralized design of operation had been demonstrated to be highly effective, it was starting to choke from its own weight.
For example, scalability at Bitcoin was becoming a serious challenge that limited the transactions that could be performed on the network. Here are some of the main issues that Groestlcoin solves.
- Scalability problem
When a financial payment platform (banking, credit card, or crypto related) is launched, its success is largely gauged through the ability to support more transactions securely. However, this proved to be a nightmare in both conventional and crypto related platforms especially the pioneers.
In conventional banking systems, a person targeting to send funds on to another part of the country or globe cannot do it instantly. The transaction has to be scrutinized based on the jurisdictions’ know your customer (KYC) and anti-money laundering (AML) laws.
These procedures make the process complicated and painfully slow. It is the main reason why some wire transfers take up to four days before they can be effected. However, many blockchain networks did not manage to comprehensively address the issue.
For example, Bitcoin can only support seven transactions while Ethereum can only handle 20. Even the seemingly more advanced Bitcoin Cash, a fork of Bitcoin, can only handle 60 transactions every second.
When these figures are tabulated against the industry leaders such as Visa that can handle over 20,000s transactions every second, it shows that blockchain networks are lagging behind. This is one of the problems that Groestlcoin addresses.
- Centralized mining
The entry of decentralized networks such as Bitcoin and Litecoin was used to celebrate the liberation of the financial sector. People had finally come to see the light because they could operate without relying on centralized organizations such as banks.
However, the technology developed fast and companies started designing advanced mining equipment that generate high hashing power to help people mine more coins. Though the idea might have been noble, the impact was catastrophic.
The mining equipment such as the Antminer S9 are very expensive and out of reach for the average person. This implies that the process of mining and creating new blocks to earn new coins was only left in the hands of the rich.
The centralized mining equipment such as ASICs are fast taking the blockchain industry back the centralized past. By funneling the new coins only to a few individuals/ parties/ pools, the centralized mining also raises the danger of 51% attack on the crypto networks.
When you decide to send funds through a banking system, a long list of people and parties can easily get access to the account history. These include cashiers, bank management and political administration. Nothing is secret.
However, even some crypto networks such as Bitcoin and Bitcoin Cash are not private. At Bitcoin, the encryption only uses pseudonyms that are easy to uncover by following multiple transactions for individual users.
How does Groestlcoin Solve the problem?
To address the outlined issues, Groestlcoin implemented the following strategies and features.
- Implementation of segregated witness (SegWit)
Groestlcoin was the first coin to implement segregated witness in the blockchain niche. SegWit is the process of limiting the block size on a blockchain network by clearing off some parts (details from the block). This implies that some space is freed to allow for more and faster transactions on the Groestlcoin platform.
By freeing some space, Groestlcoin is not only faster, but it also supports decentralized apps and smart contracts. This is the main reason why Groestlcoin platform is now offering additional services such as tipping through GroestlTip application service.
- Use of Grøstl-512 hashing algorithm
To address the problem of centralized mining and advance the concept of total decentralization, Grøstl-512 Groestlcoin uses Grøstl-512 mining algorithm which is part of the proof of work (PoW) derivative designed to be completely ASICs resistant. This implies that Groestlcoin can be mined using GPU and CPUs. Other coins that have effectively employed Grøstl-512 hashing algorithm are Verge and Digibyte.
- Application of Lightning Network
To address the problem of scalability and increase the uptake of Groestlcoin in the community, the development team also employed the lighting network. Lightning Network operates as an additional layer on the Groestlcoin platform to help run transactions faster between the participating nodes and the users.
The process involves allowing the participants to transfer value without making the transactions public on the Groestlcoin blockchain. It operates as a smart contract where the funds are held in an escrow account and participants allowed to draw them after meeting the basic requirements.
By adopting the lightning network, the Groestlcoin team indicates that it will be possible to even surpass the scalability rates achieved by competitors such as Visa.
- Use of Samourai wallet
One notable thing about Groestlcoin is that it uses the same pseudonyms that have been demonstrated to deprive users off privacy when running transactions at Bitcoin. To enhance their privacy, Groestlcoin uses Samourai private wallet.
The wallet has been very effective in enhancing the privacy of Groestlcoin because it uses stealth addresses and also has Tor support. These features have made it possible for Groestlcoin users to operate in the network without worrying about third-party seizures.
What makes Groestlcoin better than its competitors
Even as the list of cryptocurrencies continues growing, Groestlcoin has managed to stay ahead of most of them. Here are some of the things that make Groestlcoin better than competitors.
- The Groestlcoin platform and its native coin have been around for more than four years. The lengthy period of operation is used to demonstrate the strength and stability of structures used in a blockchain network.
- The Groestlcoin system uses the advanced Grøstl-512 hashing algorithm that has helped to address the problem of centralized mining. The algorithm has helped Groestlcoin to take advantage of the strengths of both proof of work and proof of stake to make the platform more stable.
- The founders have managed to address the problem of poor scalability that has remained a serious challenge to Bitcoin and other altcoins. The development team indicates that it has the capacity to handle more transactions and outdo the industry leaders.
- The platform is faster and cheaper when sending funds across the globe when compared to conventional banks and even other crypto networks such as Bitcoin. These special traits are achieved through full decentralization. This implies that users can send funds on a peer2peer basis without involving centralized operators such as banks.
- The Groestlcoin platform allows users to operate privately without worrying about third-party seizures. By working together with Samourai wallet, users on the Groestlcoin are able to enjoy total privacy for their transactions. This implies that you do not have to worry about the personal details falling into the hands of third-parties.
The stealth addresses, advanced encryption, and TOR support ensures that your details are hidden. Indeed, even a court of law cannot know of order the production of transactions run under Groestlcoin because cryptocurrencies are not regulated.
- The price of Groestlcoin in the market has been impressive. Unlike other coins in the markets that are suffering from low prices or are at the brink of fading off, Groestlcoin is performing very well. Even after a poor show between 2014 and 2017, the price of GRS started growing to become one of the top performers.
By early November, GRS market capitalization was $36.2 million. This was way higher than other more popular coins such as Ethos, Crypterium, and Salu S.
How can Groestlcoin be categorized?
Groestlcoin is a next-generation cryptocurrency and platform created to offer reliable solutions to the blockchain industry. The development team of the platform demonstrated the commitment and capability to enrich the blockchain niche.
The platform has demonstrated that unlike pessimists who have been indicating that blockchain could soon come to an end, creativity demonstrated at Groestlcoin shows it is possible to improve the technology and deliver high customer value.
For example, Groestlcoin demonstrated that even if a coin is not private, it can integrate a completely private wallet to make transactions anonymous. The platform was also the first to implement Segregated Witness technology.
What’s Groestlcoin’s vision on Security?
Groestlcoin’s vision of security is to guarantee users that their transactions, coins, and personal info are free from attacks. This vision was targeted at helping Groestlcoin weather the wavers of insecurity that rocked the industry in the early years of blockchain niche. Here are some of the methods used to guarantee users of optimal security on the network.
- Advanced encryption.
- Use of Samourai wallet to enhance anonymity.
- Use of Grøstl-512 hashing algorithm has helped to advance decentralization and lowered the danger of 51% attack.
- The development team works progressively to identify gaps and seal them through updates.
Examples of Groestlcoin’s use cases /applications
To outdo competitors in the blockchain niche, Groestlcoin’s development team targeted to take it to more users through diverse applications. Here are some of these use cases.
- You can use GRS coin to send value across the globe on a peer2peer basis.
- The GRS coin can also be used to pay for transaction fee when using the Groestlcoin platform.
- GRS can also be traded in the exchanges such as Binance, Bittrex, Huobi, and Upbit.
- Use GRS coins to pay for goods and services in the stores that accept them.
- Pay your taxes using GRS coin in jurisdictions that allow cryptocurrencies. Good examples include Arizona, Switzerland, and Singapore.