What Is Mina? All You Need to Know About MINA

The Mina blockchain claims to be the world’s lightest blockchain, as it remains static at around 22 kilobytes by using non-interactive zero-knowledge proofs.

Many blockchains face the ‘blockchain trilemma’, which means they cannot achieve decentralization, security, and scalability at the same time. This forces users to depend on third parties for validation, computation, or storage.

Mina Protocol is different. It is a blockchain that stays small and constant in size regardless of usage. It preserves decentralization and security without compromising scalability. Mina Protocol empowers users to control their own digital assets without intermediaries. It is a solution to the ‘blockchain trilemma’ and a vision for a truly decentralized, private, and resilient ecosystem.

What Is Mina (MINA)?

Mina Protocol is a minimal “succinct blockchain”, and it claims to be the world’s lightest blockchain. It was founded in 2017 by O(1) Labs, a San Francisco-based company comprising a team of researchers and cryptographers, including Evan Shapiro and Izaak Meckler. The goal of the team is to create a more accessible and lightweight blockchain network. The project’s original name was Coda Protocol, but it was rebranded to Mina Protocol in 2020. The project’s white paper was released in 2018, and development of the network began shortly thereafter.

Mina Protocol finally launched its mainnet in March 2021, marking a significant milestone for the project. The mainnet launch was followed by a successful token sale, which raised $18.75 million from investors such as Coinbase Ventures, Polychain Capital, and Three Arrows Capital. The project has attracted a large community of engineers, supporters, and investors who were intrigued by its goal of developing an open-source, decentralized blockchain network.

Mina’s vision is to create a more accessible and decentralized financial system by enabling anyone to participate in the network, even with low-end devices. The project also places a strong emphasis on privacy, allowing users to transact in a fully confidential manner. The Mina Protocol is known as the world’s lightest blockchain because, while many blockchains are several hundred gigabytes in size, the Mina blockchain is a mere 22 kilobytes. This small size allows the network to maintain its decentralized and accessible nature, while also offering scalability and security.

What are Zero-Knowledge Proofs?

Zero-Knowledge Proof (ZKP) is a cryptographic technique used to prove the validity of a statement without revealing any information beyond what is necessary. In other words, it allows one party to prove to another party that they know a certain piece of information or have performed a certain computation, without revealing any additional information that could compromise security or privacy. The term “zero-knowledge” refers to the fact that the proof does not reveal any knowledge beyond the fact that the prover knows the information being proved.

ZKPs are useful in a variety of applications, including authentication, secure communication, and digital signatures. For instance, a ZKP might be used to demonstrate the accuracy of a password without disclosing the actual password to the verifier. The prover would produce a proof demonstrating that the password is known, and the verifier would be able to validate the proof using open-source tools without knowing the password itself.

How Does Mina Work? zk-SNARKs and Ouroboros Samasika PoW

As previously mentioned, Mina is known as a ‘succinct’ blockchain because it maintains a small and constant-sized blockchain, enabling participants to quickly synchronize and verify the network. This is made possible through the use of zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Argument), a type of cryptographic proof. zk-SNARKs are, for instance, particularly useful in blockchain identity verification and allow Mina to achieve a high level of privacy and security while maintaining a small footprint. As an example, if B needs to confirm A’s identity, it can send a secret message to A without disclosing what it is and ask it to decode the message with its private key.

In a traditional blockchain network, every node must store a complete copy of the blockchain, which can grow to be very large over time. This can create issues with scalability and accessibility, particularly for low-end devices. With Mina, however, no matter how much usage grows, the blockchain always remains the same size – around 22kb. zk-SNARKs enable nodes to verify the blockchain’s integrity and the validity of transactions without having to store the entire blockchain history and without revealing the details of individual transactions. This is a huge advantage in terms of scalability, decentralization, and privacy.

Mina Protocol uses a proof-of-stake (PoS) consensus mechanism called Ouroboros Samasika, based on Cardano’s PoS Ouroboros. The primary difference between Mina’s PoS versus others’ is that Ouroboros Samasika achieves consensus without long-term history. Another difference compared to other PoS protocols is that Mina’s PoS consensus system does not involve locking up stakes to validate.

In the Mina protocol, the Ouroboros Samasika algorithm is designed to encourage participation by all network participants, regardless of their stake size. Moreover, in Mina’s protocol, a misbehaving node is just no longer trusted, instead of being heavily ‘slashed’ of its stake. Mina uses a variety of participants for its network, each with specific functions. These include:

• Verifiers: They interact with zk-SNARKS to certify consensus information, and every Mina user can act as a verifier if their device can handle a 22 KB chain and a few milliseconds of processing time.
• Block Producers: They can be stakers or miners, and have the job of bundling transactions into blocks. In order to avoid incomplete blocks and other nodes rejecting their validity, block producers must SNARK an equivalent number of trades that have already been committed.
• Snarkers: They produce zk-SNARKS that are used to verify transactions, and they are paid by block producers from transaction fees. Snarkers are incentivized by the block producers, however, the first ones are challenged to produce low-cost SNARKS, as block producers choose the bid with the lowest fees.

Mina’s approach to transaction verification is designed to promote a fair and decentralized system, by allowing anyone with a device that can handle a 22 KB chain and a few milliseconds of processing time to act as a verifier. In addition, because snarkers are incentivized to produce low-cost SNARKS, it creates a competitive market that benefits users.

Mina Use Cases

Because of its lightweight design, the Mina blockchain can be stored on mobile devices and other low-power devices, making it accessible to a wider range of users. Additionally, Mina’s scalability and privacy features make it an attractive platform for the development of decentralized applications (dApps), as well as for use cases such as decentralized finance (DeFi) and data processing. Below are three main use cases for Mina (MINA).

1. Decentralized Identity Verification: Mina’s use of zero-knowledge proofs (ZKPs) allows for secure and private identity verification. This can be used in a variety of contexts, such as Know Your Customer (KYC) verification for financial services or identity verification for voting systems. The use of ZKPs ensures that sensitive personal information is not disclosed while still providing proof of identity.
2. Scalable Data Processing: Mina is suitable for applications like big data analytics and artificial intelligence because it can process massive amounts of data in a decentralized and safe manner (AI). The Mina blockchain’s compact size also makes it simpler to store and move data between networks.
3. Digital Asset Ownership: Mina’s use of ZKPs allows for secure and private ownership of digital assets. This is particularly important for high-value assets, where ownership and provenance are key factors. Mina’s privacy features ensure that ownership of these assets is secure and cannot be traced back to individuals.

Mina-Ethereum Bridge

The Mina-Ethereum Bridge is a connection between the Mina blockchain and the Ethereum blockchain, which allows for the transfer of assets and data between the two networks. The bridge is a key feature of the Mina network, as it provides interoperability with Ethereum, one of the most widely used and popular blockchain networks. The bridge enables developers to build decentralized applications (dApps) that can interact with both the Mina and Ethereum networks. This opens up a range of possibilities for cross-chain applications, such as decentralized finance (DeFi) platforms that utilize both Ethereum and Mina assets.

Nowadays, in the blockchain world, interoperability between different networks is becoming a key factor for any project that wants to innovate and grow in adoption. Projects that prioritize interoperability are better positioned to attract users and developers, as they offer greater flexibility and utility than closed networks that only support their own assets.

What Is the MINA Token?

MINA is the native utility token of the Mina protocol that is used to secure the network. Its maximum supply is 1 billion units, of which 841,141,755 (84%) are already in circulation (February 2023). The MINA token is used within the Mina Protocol ecosystem to pay for transaction fees, participate in network governance, and stake for block production and validation. Staking the MINA token boosts the chance that a node will be chosen as a block producer. The number of MINA tokens staked directly relates to the possibility of being a block producer.

The inflation rate of MINA decreases over time, and the token has a built-in mechanism that adjusts staking rewards and transaction fees based on network demand and participation. During the first year of mainnet, accounts with lock-ups received block rewards to target an annual inflation of 12%. The inflation rate therefore decreased over time, reaching around 7%.

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Source: minaprotocol.com

Mina Ecosystem

The Mina Protocol is a relatively new platform, and its ecosystem is still in the early stages of development. As such, there are not yet many projects that have been built on the protocol. However, here are some of the projects that have been announced or are in development:

• Clorio Wallet: An open-source and non-custodial wallet for Mina Protocol. Users can send and receive Mina Protocol tokens from desktop, browser, and hardware wallet.
• Auro Wallet: Another open-source and non-custodial wallet for Mina Protocol. The Auro Wallet allows users to connect to the Mina blockchain and perform various operations, such as sending and receiving MINA tokens, staking their tokens, and interacting with other applications built on the Mina Protocol.
• Figment: A validator service that provides secure and reliable node operation for Mina. It operates as a trusted third-party validator on the Mina network, helping to ensure that the network runs smoothly and securely.

The number of projects built on Mina is still small and needs to be increased, perhaps by adding some innovative DEX. Maybe it’s just a matter of time, because in any case, Mina’s team managed to sign some interesting partnerships. Several prominent companies and organizations are involved with Mina protocol, including Coinbase Ventures, Three Arrows Capital, and Electric Capital. These partnerships provide funding and support for the development of the Mina ecosystem, as well as increased exposure and adoption of the platform.

Is Mina a Good Investment?

The Mina Protocol’s unique approach to blockchain scalability and security, combined with its growing network of partners, make it an exciting platform to watch in the coming years. It is true that there are very few projects built on its chain, but perhaps it is only a matter of time before we can see some development in terms of use cases and technical infrastructures. The protocol is designed to be developer-friendly, with a focus on making it easy to build decentralized applications and other tools on top of the protocol. This should make it very attractive for blockchain developers who, for example, need to build a fast and lightweight payment system. Overall, the Mina Protocol is a promising project that has the potential to significantly improve blockchain scalability and enable new use cases and applications. However, as with any investment or technology decision, it is important to carefully evaluate the potential risks and rewards before making any decisions.

How to Own MINA?

To own MINA, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account, and get it verified and funded. Then you are ready to go through the steps to buy MINA.

News on Mina

In February 2023, the Mina Protocol team announced the launch of a proof-of-concept (PoC) that allows anyone to run a web node for the Mina Protocol directly in their browser. PoCs are typically created to test out new ideas or technologies in a small-scale, controlled environment before investing significant resources into developing a full-scale implementation. The PoC is built using WebAssembly, a technology that allows high-performance applications to be run in web browsers.

The Mina Protocol team hopes that the web node PoC will help to increase the decentralization of the network by making it easier for anyone to participate. The team also plans to continue developing the technology and exploring new use cases for WebAssembly in the blockchain space. This represents a significant step forward in making blockchain technology more accessible and user-friendly for a wider range of people.