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Cryptocurrency Guide | Guides

What Is Mina (MINA)? All You Need To Know

Author

Rickie Sanchez

Tags

Tags Editor's Choice / Slider Posts

Reading time

3 mins
Last update

Author

Rickie Sanchez

Tags

Editor's Choice / Slider Posts

Reading time

3 mins
Last update

Author

Rickie Sanchez

Tags

Editor's Choice, Slider Posts

Reading time

3 mins
Last update


mina protocol

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Key Takeaways

  • Mina is known as the “world’s lightest blockchain” due to its tiny size of just 22KB, which allows anyone to run a full node on their device.
  • Mina utilizes “zero-knowledge proofs” (zk-SNARKS) to enable “zkApps,” which are smart contracts that can execute complex computations without revealing any sensitive data. 
  • The project aims to address the growing problem of centralization in blockchains where only a few entities can run nodes due to storage requirements.

What Is Mina (MINA)?

Mina Protocol is a layer-1 blockchain that aims to remain at a constant size of just 22kB, regardless of network activity. This contrasts with other blockchains, whose size grows continuously, making running a full node and participating in the network increasingly difficult.

The project aims to be a highly scalable blockchain that stays compact regardless of transaction history. It will allow anyone to run a node and participate in securing the network without needing high-powered computers.

How Does Mina (MINA) Work?

Constant-Sized Blockchain

Unlike traditional blockchains, which grow larger with every transaction, Mina utilizes a constant size of around 22kb. This is achieved through recursive zk-SNARKs, a cryptography technique that allows participants to verify the entire blockchain state with a single, small proof instead of downloading the whole chain history.

Consensus Mechanism

Mina utilizes Ouroboros Samisika, a proof-of-stake consensus mechanism where users stake their MINA tokens to validate transactions and secure the network.

Decentralization

Anyone with a low-resource device like a smartphone can run a full node on Mina, contributing to network decentralization and accessibility.

Privacy-Focused Applications

Mina’s smart contracts, called zkApps, leverage zero-knowledge proofs to keep user data private. Users can share proof verifying their data (e.g. identity, credit score) without revealing the data itself.

Real-World Data Integration

Unlike other blockchains, Mina’s zkApps can interact with any website, and access verified real-world data for on-chain use while maintaining user privacy. Here’s a breakdown of the key components:

  1. Transactions – When a transaction occurs, a zk-SNARK is generated, proving its validity without revealing the transaction details.
  1. Block creation – Block producers compete to create new blocks by providing valid zk-SNARKs.
  1. Verification – Anyone can verify the block and the entire blockchain state using the provided zk-SNARKs, ensuring the network’s integrity and security.
  1. Staking – Users can stake their MINA tokens to earn rewards for securing the network and participating in consensus.

Mina (MINA) Token And Tokenomics

Tokenomics

The MINA token is the native cryptocurrency of Mina Protocol. It is used for:

  • Staking
  • Paying for transactions 
  • Buying and selling SNARK proofs

Token Details

Total Supply ∞

Circulating Supply 1,072,698,255 MINA

Current Price $1.19

Market Capitalization $1,272,930,217

This information is current as of March 25th, 2024, and the token’s price, market value, and available supply may fluctuate.

Distribution

  • Team and Advisors (50%)
  • Community Sale (25%)
  • Mina Foundation (15%)
  • Treasury (10%)

Inflation

There is no fixed supply of MINA tokens. The total supply is inflationary, meaning new tokens are created over time. MINA’s initial inflation rate is 12%, which will gradually decline to 7% over four years.

Where Can I Buy Mina (MINA)?

Binance Binance is a major exchange offering a wide range of cryptocurrencies. It offers multiple ways to buy crypto, including credit cards, debit cards, and peer-to-peer (P2P) trading.

Bybit This exchange is known for its derivatives and margin trading features, but you can also use the platform for spot trading.

KuCoin KuCoin is a smaller exchange known for its competitive fees and support for many cryptocurrencies.

Is Mina (MINA) A Good Investment?

Pros

  • Lightweight Blockchain – Mina’s blockchain is incredibly small, around 22kb, making it accessible to anyone with a smartphone. This could potentially drive wider adoption and scalability.
  • Privacy-Focused – Mina utilizes zk-SNARKs technology, allowing users to verify transactions without revealing sensitive data. This could be attractive for privacy-conscious individuals and businesses.
  • Decentralized Oracles – Unlike other blockchains, Mina doesn’t rely on centralized data oracles, reducing potential vulnerabilities and promoting decentralization.

Cons

  • Uncertain Tokenomics – The lack of a capped supply for MINA tokens could lead to inflation concerns and impact token value.
  • Transaction Speed – Mina currently only processes about 22 transactions per second.

Final Thoughts

In conclusion, Mina Protocol presents a promising solution to traditional blockchains’ challenges, offering a lightweight and scalable platform focusing on privacy and decentralization. Despite the potential for wider adoption and scalability, investors should carefully consider doing thorough research before making investment decisions.