What Is Mina Protocol (MINA) How It Works & Where To Buy It?

Mina Protocol positions itself as the world’s lightest blockchain. The Mina blockchain size is only 22kb – it’s so small that users can run a full node from their smartphones.

Mina network transactions are significantly cheaper than other blockchain network transactions – this is largely due to the minuscule size of the Mina blockchain.

MINA is the native token of the Mina protocol – MINA is the 89th largest cryptocurrency by market capitalization.

How Mina Protocol (MINA) Works

The Mina Protocol utilizes a consensus mechanism that was derived from Cardano’s proof-of-stake mechanism – a PoS consensus mechanism called Ouroboros Praos.

The consensus mechanism has been articulately altered to cater to the needs of Mina, and the integration of zk-SNARKs ensures that the blockchain achieves its full potential.

Mina’s native consensus mechanism version is called Ouroboros Samasika. There are three main actors in the network:

Verifiers

Cryptographic proofs that are zk-SNARKs on the Mina network can quickly and seamlessly be verified by all nodes. The downloading of proofs is almost instantaneous, thanks to them only being tiny in size. Verification also takes milliseconds, thanks to the compact size.

Block producers

Block producers are tasked with the collection of transactions and including them in sequential blocks. Much like miners play this part in proof-of-work blockchain protocols like Bitcoin, block producers are rewarded by the protocol.

To keep the blockchain ”succinct,” block producers need to provide SNARK. The process required every block producer to provide sufficient SNARK that is equivalent to the transactions that were previously added. Essentially, nodes are required to follow the rules of consensus and would reject the transaction if the appropriate system wasn’t followed.

There needs to be a continuous balance to maintain consensus and uphold the integrity and functionality of the blockchain. SNARKs can be generated by block producers or can be bought from nodes that have dedicated themselves to the specific calculation.

Snarkers

Snarkers are network nodes that are specifically tasked with the production of cryptographic proof. This proof is referred to as zk-SNARKs – each proof that is generated has an assigned bid. Block producers then pay Snarkers for these bids with transaction fees. The competition among snarkers is steep, and multiple snarkers can bid for the same transaction.

The mechanism that facilitates this process is relatively simple to understand. Snarkers are selling evidence, and block producers are buying the evidence – both are required to achieve consensus.

Block producers often opt to make bulk purchases SNARK – this specific purchase of evidence is called a “fee to transfer”. These transactions take place on a platform called the Snarketplace.

Zero-knowledge evidence and zk-SNARKs

zk-SNARK is an acronym that’s short for ”zero-knowledge Succinct Non-interactive Argument of Knowledge.” Zero-knowledge Proofs are cryptographic protocols that facilitate the proof of the veracity of a transaction without necessarily needing to have any knowledge about the proposal.

What makes zk-SNARKs distinct are two characteristics:

• Succinct: generated proofs are merely a few kilobytes in size
• Non-interactive: verifiers and evidence providers are necessarily required to interact

zk-SNARKs are commonly used in privacy-oriented blockchains like Zcash – mainly because they allow for the anonymity of transactions on a network.

The best way to describe zk-SNARKs would be to think of them as immutable certificates. zk-SNARKs ensure that proving the validity of operations on a network can be achieved without the knowledge of what the operation pertains to.

SNARKs ensure that consensus is reached by making it possible to verify all the necessary rules.

What Is MINA Used For?

MINA tokens are the native tokens of the Mina blockchain. Essentially, MINA tokens help the Mina protocol work efficiently. The succinct blockchain is kept secure by MINA stakers because the blockchain utilizes a proof-of-stake consensus algorithm. MINA tokens are also used on Snarketplace – a new block can only be created by purchasing ”evidence”.

Additionally, MINA tokens are traded on multiple cryptocurrency exchanges. The price fluctuations of MINA make it an appealing opportunity for experienced swing or arbitrage traders.

Mina token holders can also stake MINA without the risk of slashing occurring – this is one of the main reasons that so many token holders are staking their MINA tokens.

Where To Buy MINA

MINA has quickly become one of the most well-known cryptocurrencies on the market. The Mina Protocol and Mina Foundation have achieved managed to create a revolutionary blockchain that is attracting major adoption worldwide.

MINA tokens are commonly available and frequently traded on most centralized crypto exchanges. Before you’re able to purchase MINA, you’ll need to deposit fiat money onto an exchange, and sequentially MINA tokens will be credited to your MINA digital wallet on the exchange.

The crypto exchanges below are the safest place where you can buy, sell and store MINA tokens.

1. Gate.io
2. HTX
3. KuCoin
4. Binance
5. Bitfinex

Users often opt to store their tokens off-exchange and in either a digital or hardware wallet. MINA tokens can also be staked through the AURO wallet.

About Mina Protocol (MINA)

How long has Mina Protocol (MINA) existed?

O(1) Labs, which was founded by Evan Shapiro and Izaak Meckler in 2017, created Mina Protocol with the vision of helping empower individuals to take control of their digital lives. MINA crypto had an initial coin offering in April 2021.

The initial coin offering generated more than $48,000,000, and the ICO price was 1 MINA = 0.25 USD.

What’s controversial about Mina Protocol (MINA)?

Many would say that the crypto market is relatively over-saturated, and many projects fail to reach a certain level of success because of the rapid rate of new projects entering the crypto space. Therefore, it’s essential to do sufficient research before investing.

Let’s take a look at the top controversy surrounding the Mina Protocol (MINA):

• Transactional Capacity – Although the Mina protocol incorporates many novel and unique features like recursive zero-knowledge proofs and a consensus algorithm integration which is a first in the blockchain industry – the blockchain still can’t process a large number of transactions.
• The current transactional capacity of Mina is only 22 tps. In comparison to other blockchains, Mina performs poorly. Blockchains like Solana can process up to 50,000 transactions per second. Many people consider Mina to be a great blockchain but don’t believe it will be able to compete with the larger blockchains that have already established themselves in the crypto space.

How many MINA tokens are there?

At the time of writing, MINA has a circulating supply of 536,211,657.84 MINA 

The total supply of MINA is 824,104,972 MINA

Can MINA be mined?

MINA is not a mineable cryptocurrency. MINA, unlike Bitcoin and other proof-of-work coins, can’t be mined. Mina Protocol uses a proof of stake consensus algorithm to validate transactions and relies on nodes and stakers to secure the entire blockchain. Unlike other blockchains, Mina also doesn’t require the entire transaction history for new blocks to be created.

However, many individuals earn yields through staking their MINA tokens – it’s a lucrative and profitable method to earn more MINA tokens without the risk of slashing.

What is the market cap of Mina Protocol (MINA)?

The market cap of Mina Protocol (MINA) is:

Mina Protocol (MINA) market cap = total amount of coins in circulation x current market price of MINA.

Mina Protocol (MINA) Market Cap = 536,211,657.84 MINA x $0,85 = $459 million (89th largest market cap)

Mina is currently one of the top 100 cryptocurrencies by market capitalization and continues to grow in popularity as the project attracts more institutional and retail investors and increases user adoption.

The market cap fluctuates according to circulating supply and market price.

Biggest Competitors Of Mina Protocol (MINA)

Mina is competing with all blockchains that offer the same solutions. More specifically, MINA aims to solve the blockchain trilemma – scalability, security, and decentralization.

Some of Mina’s biggest competitors are:

• Bitcoin
• Polkadot
• Fantom
• Avalanche
• Cardano
• Tron
• Ethereum

What are the Future Plans for Mina Protocol and MINA Token?

The Mina ecosystem has recently seen an investment of $92 million – investors included Three Arrows and FTX. The investments are aimed at growing the Mina ecosystem and bolstering value within the ecosystem.

In the coming months, the Mina network aims to keep adding utility, increasing user adoption, and prioritizing the security and reliability of its blockchain.

Pros And Cons Of Mina Protocol And MINA

Pros:

• Lightest Blockchain In The World – The Mina Blockchain is only 22kb and has remained that size since it started. In comparison, Bitcoin’s blockchain has already grown to a size of 360GB. The compact size of Mina’s blockchain is what makes it a sustainable, scalable, and more optimized blockchain than many others in the world today.
• Non-interactive Verification – The unique and novel consensus algorithm that Mina uses, along with the integration of zk-SNARKs, ensures that consensus can be reached even without knowing what the operation is.
• Cheap Transaction Fees – Processing transactions on the Mina blockchain is significantly cheaper than most blockchain networks.

Cons:

• Chinese Government links – The transactional capacity of the Mina blockchain is relatively low compared to other projects like Solana or XRP. Mina is currently only able to process around 22 tps. Many individuals believe that the blockchain simply isn’t capable of handling the required transactional needs.