Mina: Fundamentals, technicals, tokenomics and future outlook

What is Mina? Mina Protocol, known as the world’s lightest blockchain, is a cryptocurrency protocol with succinct blockchain. All of the popular cryptocurrencies such as bitcoin in the space today store gigabits of data in the blockchain today. In 2012, the bitcoin blockchain had a size of 615 MB, but today the size has ballooned to 360 GB in size. As the blockchain grows in the future and more individuals participate in it, this size is deemed to get bigger over time. This poses constraints and problems for nodes as they carry the blockchain’s data with them. The problem in the future would be that only expensive specialised nodes with high computing powers can run the network, questioning the decentralisation of the network. Mina attempts to solve this issue of the blockchain size by zk-snark technology, a type of succinct proof, such that the size of the blockchain stays the same size of 22kb. This size is extremely small for a blockchain and is typically the size of a few Twitter tweets or a low-quality image. How Does it Work? The protocol works by using the following technologies: zk-SNARK — The Mina protocol uses zk-SNARKS to certify computations on the blockchain. This technology provides unforgeable proof that computations were performed and does not prove the entire computation. It proves the accuracy of blocks transaction history without requiring all the transactions. Here’s a simple analogy to understand this technology better. Suppose you head over to Africa for your vacation and visit a nature reserve. You wish to show your friends that you saw a particular endangered animal. You cannot bring the animal back to show your friends but simply take a picture and send it to prove that you have seen it. This is similar to how this technology works. Recursive Composition of SNARK’s — Whenever a block in the blockchain is produced, a new SNARK certificate is created. A mega SNARK is created that contains the previous certificates and transactions history, allowing Mina to remain at a size of 20kb Proof of Stake consensus — Mina is secured by the Proof-of-Stake consensus, where mining equipment is not required like popular blockchains. Users can either stake their Mina or delegate their mina to nodes in order to secure the network. Use Cases The mina protocol has its own version of decentralised applications known as Snapps, which is powered by SNARK technology. These Snapps has enhancements in privacy and scalability. This allows for permissionless apps to work with permissionless, sensitive or private data. Some of the use cases of Snapps include: * Oracles, Private ID, proof of Trade, Proof of Assets, Passport On-Chain, Private DAO voting etc Tokenomics Mina, the native token of the Mina Protocol, has the following utilities and use cases: * Staking and Producing blocks on Mina Blockchain * Used for transactions in Snarketplace where block and SNARK producers buy and sell SNARK proofs Future Outlook Since its launch, Mina has achieved enormous support and success over the past few months. Its recent integration with Polygon to bring privacy to Ethereum scaling solutions has been major news for the protocol. Its size of the blockchain, SNARK technology and privacy focus should see multiple applications in the future. Mina launched its mainnet and token in early 2021 and ranks 101 among all cryptocurrencies. Buy Mina on BitYard today! Purchase Mina and over 300 other cryptocurrencies on BitYard today! Click here for the detailed guide on how to purchase cryptocurrencies in BitYard. Check out our other crypto analysis below: * Terra (Luna): Fundamentals, technicals, tokenomics and future outlook * Theta Network: Fundamentals, technicals, tokenomics and future outlook * Hedera Hashgraph: Fundamentals, technicals, tokenomics and future outlook * The Graph: Fundamentals, technicals, tokenomics and future outlook If you enjoyed reading this article, make sure you follow us on our medium page to stay updated for more exciting content! As usual, none of this information is financial advice, and you should do your own research before investing in any of these projects mentioned in this article. --- Mina: Fundamentals, technicals, tokenomics and future outlook was originally published in BitYard Token Insight on Medium, where people are continuing the conversation by highlighting and responding to this story.
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