What is Mina (MINA)?

What is Mina (MINA)?

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Mina Protocol is a basic “succinct blockchain” designed to reduce the computational and processing needs inherent in Decentralized Applications (DApps).

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Mina has been dubbed the world's lightest blockchain because its size is planned to stay constant regardless increase in users. Additionally, it maintains a balance of security and decentralization.

The project was renamed and rebranded to Mina in 2020. One of the most unique and prominent characteristics of the Mina protocol is that it is only 22Kb in size, making it the smallest blockchain today, a stark comparison to Bitcoin, which weighs in at 300Gb.

 

Component Mina (MINA)
Technologies Zk-SNARKs, verifiers, snarkers, Ouroboros Samasika
Market Capitalization $1.13 Billion+
Open-Source Yes
Consensus Mechanism Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge (zk-SNARKs)
Smart Contracts No
Founders/Authors O(1) Labs, Evan Shapiro, Izaak Meckler
Launch Date 2021
Circulating Supply of Coins 344,772,400 MINA
Maximum Coin Supply None
Mining-based Coin? No
Is Mina a Stablecoin? No
Does Mina have a burn rate? No
Does Mina have a Whitepaper? Yes, the technical white paper can be viewed here

 

Evolution and Development of Mina

Mina Protocol was launched by O(1) Labs in 2017. Its objective was straightforward: to optimize the blockchain's decentralization and scalability.

It was originally called Coda Protocol but was forced to alter its name to Mina after a trademark battle with R3 over the name's closeness to the Corda blockchain.

Evans Shapiro is the company's CEO, and other founding team members include O(1) Labs' Izaak Meckler, Brad Cohen, Emre Tekişalp, and Vanishree Rao, as well as New York University's Joseph Bonneau.

 

What makes Mina unique?

Mina Protocol intends to be a small blockchain with a constant size of 22 kB regardless of the number of transactions committed to the network.

This size should make it possible for everyone to run a node and contribute to the network's security without requiring complex computer gear.

Mina intends to address blockchain size difficulties that have plagued previous projects as they develop by making the whole blockchain smaller than most photographs on your phone.

The native cryptocurrency of the Mina Protocol, MINA, is used to simplify transaction processing and distribute fees among users. The adoption of blockchain technology has resulted in a large growth in the number of transactions kept on most platforms.

For example, the Ethereum blockchain was little more than 5 GB in April 2016 but has grown to 220 GB by April 2022. During those five years, the blockchain received millions of transactions.

Because blockchains are decentralized ledgers of previous transactions, operating a node (which maintains the blockchain's full history) has needed increasing computer power and energy as the blockchain has grown.

This has often made it more difficult for normal people to contribute to the blockchain's maintenance. Many believe that this also exposes the blockchain to the possibility of centralization since individuals with the most computer power are the most efficient at maintaining the chain's huge size.

Mina's creators addressed this problem by using a cryptographic approach known as zk-SNARKS to construct a payment-oriented blockchain that does not need each node to maintain a full record of all historical transactions.

This reduces the computing needs for maintaining a fully-functional blockchain network. Mina argues that allowing more people to operate nodes and verify transactions would result in the creation of more nodes, assisting the system is becoming more distributed and safer.

Within the Mina Network, individuals may fill one of three roles that contribute to the network's flawless functioning. Each of these responsibilities is appropriately compensated. They include the following:

In terms of the Verifiers, numerous network users will be able to verify since all that is required to become a verifier and attain complete node security is the download of a zs-SNARK. It is merely a few hundred bytes in size and verifies in a millisecond using computer procedures.

In terms of the Block Producers, This category represents the stakers or miners in different blockchain systems. Block producers are compensated for their participation on the Mina blockchain from network fees and additional contributions such as block rewards.

Individuals may also opt to stake indirectly via a block producer rather than directly. Block producers are responsible for selecting which transactions to include in a block.

Therefore, they will always choose for the highest-fee transactions. However, block producers have another duty on Mina: they ensure the blockchain's succinctness. These block producers must “SNARK” an equal number of previous transactions for every previous transaction added to the block.

Once successful, their block can conform with the consensus mechanism, and it will subsequently be accepted by other nodes on the network.

In terms of Snarkers, these are the network members who are responsible for generating the zk-SNARKs required for SNARK transaction verification. Snarkers charge fees in addition to soliciting bids for their SNARKs. 

If a block producer uses these SNARKs, the specific block producer is required to pay for the SNARK in transaction fees.

Because of the large number of Snarkers submitting fees, the block creator will typically choose the most cost-effective ones, which encourages players to compete to make them.

A Mina transaction is initiated by the verifier and then enters the memepool. Simultaneously, the Snarkers create proofs for the pending transactions that do not include Snarks.

The next phase is for the block producer to choose the most lucrative transactions and an equal number of “unsnarked” transactions to build a block.

Subsequently, the block producer must purchase SNARKS from the SNARK order book for these transactions. Following that, the block maker has the option of adding a new block to the Mina blockchain.

The queue status is then updated by adding new transactions and removing snarled transactions. The block producer then changes the zk-SNARK for the blockchain and validates the new block.

 

What are the main uses for Mina?

Mina is suitable for the following purposes:

  • Mina Protocol provides end-to-end data privacy, allowing users to conduct sensitive actions on the blockchain without divulging personal information.
  • Permissionless web oracles: Without obtaining permission, developers may incorporate many public datasets from the Web into their decentralized apps.
  • Managing web identifiers: Mina enables users to visit websites and Internet services without creating an account or sharing personal information. Mina acts as an interface for incognito access to any system in this scenario.

 

What is the future potential for Mina?

Although the Mina protocol is still in its infancy, it already provides remedies to contemporary blockchains' scale, high power consumption, and transaction fees.

It was one of the most hyped projects of 2017 and has proven to be the lightest chain powered by users in the world.

 

Price analysis on Mina

Mina was initially launched in 2022, and its price analysis over the past five months are as follows:

 

  September October November December January to date
MINA Price High $6.27 $4.80 $6.12 $4.63 $4.16
MINA Price Low $3.44 $3.97 $4.14 $3.01 $3.20
Market Cap $805.94M $1.45B $1.78B $1.43B $1.15B

 

Price prediction on Mina

MINA began trading on July 1, 2022, at $9.90, before rising a cent to an intraday and all-time high of $9.91.

Sadly, for early investors, the market saw this debut price as overvaluing the currency, and it quickly plummeted to an intraday low of $2.76 before rebounding to $3.24, a two-thirds decrease.

This revised pricing seems more appropriate for the coin. The price of MINA fell below $2 before the end of the month, completing June at $1.52, an almost 85% drop from the start of the month.

While many crypto experts believe 2022 would be a bad year for Mina, some believe it will be a bullish year. Several sources forecast MINA to hit $7.60 by the end of 2022, then rising to $8 the following year.

The currency might reach $10 in 2024, and $15 in 2025, according to the Mina Protocol pricing projection.

 

Which wallets are the best option for storing Mina?

The best digital wallet options for MINA tokens are as follows:

1. Ledger Nano X: Ledger Nano X is a hardware device and digital wallet that supports MINA tokens, according to the official Mina Website. Supported operations include keypair generation, the signing of payment transactions as well as the signing of delegation transactions.

 

Where can you buy Mina?

MINA tokens can be bought, sold, and exchanged on some of the following popular crypto exchanges:

  1. Uphold
  2. WazirX
  3. Gate.io
  4. Binance

 

1. Uphold: Uphold is a popular exchange trading platform that features a robust trading platform. Uphold is a popular option for crypto traders and investors, especially those who want to buy, sell, or trade MINA.

 

PROS CONS
Uphold has a low minimum deposit Spreads can be wide
The exchange offers commission-free trades on all digital coins The asset selection is limited
The exchange offers cross-asset trading opportunities  
The exchange offers many options that can be customized  
The platform offers up to 50 limit orders from a single pool of capital  

 

2. WazirX: WazirX is a cryptocurrency exchange that was established in India in early 2018. Among the several cryptocurrency exchanges accessible, WazirX is one of just a few that provides a diverse range of cryptocurrencies for trading.

 

PROS CONS
There is a decent range of digital coins offered The exchange is not suited to professional traders
There are competitive trading fees offered Support is slow and only available through a ticketing system
The trading platform is user-friendly  
Traders have access to free fiat/crypto swaps  

 

3. Gate.io: Gate.io is a crypto exchange trading platform that boasts an impressive selection of tradable currencies. Gate.io likewise claims strong trading volumes and seems to be a favourite option for Chinese traders, as well as gaining traction in the United States and Europe.

 

PROS CONS
Traders have access to a decent range of trading pairs and digital tokens There are some trust issues reported by users
There is margin trading offered Unregulated
Users have access to newly listed coins  
Traders have several trading opportunities  
The exchange has a very high 24-hour trading volume  

 

4. Binance: Binance debuted in 2017 and has since grown to become one of the most well-known and trustworthy exchanges in the business. Assuring a high degree of trust and transparency is critical for any cryptocurrency exchange to succeed.

This is something that Binance values highly, and they have worked diligently to build a trustworthy trading environment.

 

PROS CONS
Binance has a good reputation as an exchange with a high level of trustworthiness There is a high fiat minimum deposit 
The exchange supports crypto and fiat deposit options The exchange is not suited to novice traders
There is a wide range of digital coins offered  
The platform uses robust security measures  

You can buy Mina safely from these cryptocurrency platforms.

What is the Staking Process involved with Mina?

The Mina Protocol leverages Ouroboros Praos (Cardano's PoS consensus process).

The first consensus procedure has been changed to include zk-SNARKs. It is named Ouroboros Samasika. The network has three actors. All Mina nodes can validate zk-SNARK cryptographic proofs. These proofs are small and light, so they may be downloaded fast.

They can be confirmed in milliseconds. Block producers in Mina, like Bitcoin miners or stakers in a PoS network, gather transactions and include them in blocks.

The protocol pays miners by inflating and collecting transaction fees. Block producers choose transactions with higher costs to maximize revenue.

But they must also supply SNARK to keep the blockchain “succinct.” The producer must give enough SNARK for an equal amount of previously added processes. Otherwise, the other nodes will reject the transaction for not obeying consensus rules.

Snarkers are network nodes that provide cryptographic proof (zk-SNARKs). They value each proof created, while producers utilize it to construct blocks. Block producers pay Snarkers by way of transaction fees. Snarkers may provide several proofs and bid on the same transaction.

Market dynamics among snarkers and block producers are critical. The snarker is rewarded for selling their evidence. The block producer wants cheap proof and pays the snarker through a fee to transmit transactions. Block makers prefer to purchase SNARK in bulk since the charge is per batch.

The Snarketplace is the platform where various events take place. Any Mina user may verify it. This method “compresses” the blockchain. Rather than verifying a block's whole transaction history, full nodes evaluate cryptographic proof and the Merkle tree related to the current state.

If the protocol employs one SNARK every block, the chain will initially be smaller but grow linearly with time. Then, given the current proofs, recursive SNARKs are created, keeping the evidence size constant.

Each new SNARK is a “super-SNARK,” a super-proof derived from a proof chain. This allows you to verify any transaction's history from the genesis (original) block to the most current block. A full node can sync with the Mina blockchain in milliseconds.

 

What can Mina smart contracts do?

The Mina Protocol (MINA) is a smart contract-compatible proof-of-stake (PoS) blockchain network as well as a digital currency that functions on the Ethereum blockchain.

 

Is Mina a Good Investment?

Yes, Mina is a good investment.

A greater number of investors than projected participated in the public auction of MINA tokens, demonstrating the market's excitement for the protocol.

Furthermore, the opportunities provided by this new design in decentralization and scalability present the path for developers to construct apps that prioritize privacy and control over private information.

 

What is the supply and distribution of Mina?

MINA's Initial Distribution is limited to a total of one billion tokens. This figure covers all token beneficiaries in the allocation schedule, except for block incentives, which are minted on a per-block basis after the launch of each block. MINA is a non-convertible currency with no supply limit. 

This choice was taken to encourage a high degree of staking involvement during the protocol's early years, which will raise the protocol's level of decentralization. Mina's “Supercharged Rewards” (described later in this section) also accomplish this goal. 

Because staking is available to all tokens on the protocol (without the danger of bonding or slashing), any token holder may prevent being diluted via staking or delegation.

Is Mina a viable Alternative Coin?

Yes, Mina is a good altcoin.

  • Traceability – Because of its consensus, Mina can offer anonymous transactions.
  • Hacking – Mina's unique blockchain is free of any hacking events.
  • Security – Because of its technology, Mina's blockchain is extremely safe.
  • Transaction speed – Because of its innovative architecture, Mina can process more transactions than other, heavier blockchains and networks.
  • Technology – Mina uses some of the most innovative technology, including Zk-SNARKs, verifiers, snarkers, Ouroboros Samasika, and more.
  • Potential Investment – In the pursuit of eco-friendly and sustainable cryptocurrencies, Mino is one of the best potential investments.

Any cryptocurrency that isn't Bitcoin is referred to as an altcoin.

What are the differences between Mina and Bitcoin?

Bitcoin is the first digital currency that challenged conventional monetary systems offering a trustless, decentralized solution for cheaper, faster transactions and complete financial freedom.

Bitcoin is one of the heaviest blockchains because it has been around the longest, and it uses a pure Proof of Work consensus, which requires a massive amount of computational power, which is detrimental to the environment.

A greater number of investors than projected participated in the public auction of MINA tokens, demonstrating the market's excitement for the protocol.

Furthermore, the opportunities provided by this new design in decentralization and scalability present the path for developers to construct apps that prioritize privacy and control over private information.

 

  Bitcoin Mina
Price change 20/21 +400% -50%
Market Cap $800 Billion+ $1.13 Billion+
Past Hacks None None
Popularity Very High Very Low
Altcoin Rank #1 – Original Crypto #84

 

What are the differences between Mina and Ethereum?

As with Bitcoin, Ethereum is a large, heavy blockchain that is struggling with scalability. The issues that Ethereum struggles with are effectively solved with a fast, reliable, technologically sound, and lightweight blockchain such as Mina.

Ethereum outweighs Mina in terms of usability, size, and popularity, but Mina's technology has the potential to become more popular as more people seek eco-friendly alternatives.

 

  Ethereum Mina
Price change 20/21 +880% -50%
Market Cap $460 Billion+ $1.13 Billion+
Past Hacks None None
Popularity Very High Very Low
Altcoin Rank #2 #84

 

What are the differences between Mina and Dogecoin?

Jackson Palmer and Billy Markus are Dogecoin’s creators. Dogecoin is an open-source cryptocurrency that has a devoted network of fans who trade it and use it to reward social media content creators.

It is used to compensate system users for actions, such as block production or the creation of zk-SNARKs. On a variety of exchanges, the Mina Protocol cryptocurrency may be purchased, sold, and exchanged.

It is also used to communicate with Snapps, which are protocol-based decentralized applications (DApps).

 

  Dogecoin Mina
Price change 20/21 +7,300% -50%
Market Cap $22 Billion+ $1.13 Billion+
Past Hacks None None
Popularity High Very Low
Altcoin Rank #12 #84

 

What are the differences between Mina and NEO?

The primary use case for NEO is to provide people who stake it the ability to vote on network parameter improvements. Staking NEO entitles users to a share of the block rewards, which are distributed in GAS.

Each time a new block is formed, gas is generated until the network has distributed 100 million tokens. Neo's platform enables developers to execute smart contracts (dubbed NeoContracts) and create new decentralized applications (DApps) that duplicate real-world goods and services.

Mina is a general-purpose protocol designed to power and allows Snapps, which are proprietary decentralized applications powered by SNARK.

 

  NEO Mina
Price change 20/21 +160% -50%
Market Cap $1.70 Billion+ $1.13 Billion+
Past Hacks None None
Popularity Medium Very Low
Altcoin Rank #69 #84

 

What are the differences between Mina and NFTs?

Nonfungible tokens (NFTs) are digital assets that each have a unique value, with no two NFTs holding the same characteristics or value as another. Mina, on the other hand, is fungible, which means that one MINA has the same value and characteristics as another MINA.

 

What are the differences between Mina and Solana?

Solana is one of the most popular cryptocurrencies in the altcoin market, while Mina is not. Solana has a much higher throughput of up to 50,000 transactions per second, making it much faster.

Solana has more digital wallet options than Mina, including several sovereign wallets. While both tokens have unlimited supplies, Solana's inflation rate is twice as low when compared to Mina.

Both Mina and Solana offer staking, and Solana offers an average APY of 7%, while Mina offers 11%.

 

  Solana Mina
Price change 20/21 +9,300% -50%
Market Cap $54 Billion+ $1.13 Billion+
Past Hacks None None
Popularity Very High Very Low
Altcoin Rank #5 #84

 

What is Snapps?

Snapps are a new decentralized application (DApp) that depends on cryptography to enable trustless blockchain transactions.

Snapps can prove knowledge without exposing all bits of information by using the capabilities of zk-SNARKs, or zero-knowledge Succinct Non-interactive Arguments of Knowledge.

Only the basic minimum of information is needed to complete the transaction, no more than is necessary.

Mina is more scalable than Ethereum DApps since Snapps are run just once by the creator, after which the SNARK proof linked with it is verified by all other nodes.

Mina's zk-SNARKs enable recursion — the idea that proof may refer to itself — without increasing the size of the proof. To validate the execution of a DApp, all Ethereum nodes and miners must do the identical computation, wasting energy, time, and money.

Mina lets an author execute a Snapp just once, after which all other nodes validate the related SNARK proof.

Additionally, because of the minimal size of the SNARK and verification, validating the execution of a Snapp is quick and energy-efficient, regardless of how hard the proof is.

As technology advancements reduce the time required to verify a SNARK, we will witness more efficiency gains in comparison to typical smart contract calculations.

 

Which other crypto uses Snapps?

Snapps are native only to the Mina protocol currently.

Snapps are general-purpose SNARK-enabled smart contracts developed by Mina. They, like other smart contract languages, are Turing complete, but since they are based on SNARKs, they include privacy and verifiability.

If a Snapp has data that has been signed by a trustworthy source, it may immediately begin utilizing and computing with it. Snapps may use this and HTTPS to connect their operations closely with public and private data from anywhere on the web.

Public data may be transferred on-chain by verifying the HTTPS-signed site. A Snapp can assure that it is using the most recent AAPL price as reported by a certain trustworthy site (or group of sites) without requiring any modifications on the part of those sites.

 

What is the advantage of Mina being the lightest blockchain?

In comparison to other Blockchains, Mina's protocol maintains a constant size of 22 kilobytes while other Blockchains have a maximum capacity of 300 GB. Due to its set size, Mina strives to be the world's smallest Blockchain, while other Blockchains are regarded to be hefty.

Mina is a lightweight protocol that enables anybody to join P2P and sync and verify the chain in a matter of seconds. This protocol is based on cryptographic proof with a stable size, which enables it to expand to millions of users and therefore increase accessibility.

In comparison to Mina, other protocols are heavy, need mediators to operate nodes, and so recreate the same old power relations. Mina is more accessible than other currencies, which means it can travel places other money cannot.

Mina's architecture assures that everyone may participate in the proof-of-stake(PoS) consensus process, enabling widespread censorship resistance and safeguarding the whole Blockchain network.

Unlike other Blockchains, Mina's 22kb chain enables speedier execution and a smoother user experience. It is capable of processing thousands of transactions per second, and regardless of the number of transactions in the past, the chain's complete historical data would be small enough to fit on users' cell phones.

Mina introduces a new application category called Snapps. Snapps are general-purpose SNARK-enabled smart contracts that include privacy and verifiability.

These apps are designed with an emphasis on efficiency, privacy, and scalability. Snapps computes data and logic off-chain and verifies them on-chain on the end user's device. These robust applications guarantee that information is approved without revealing any sensitive data.