Mina Protocol seeks to use more advanced cryptography instead of intense computing power to run its network. Mina claims to be “the world’s lightest blockchain,” taking up a meager 22 kilobytes, compared to Bitcoin’s blockchain, which currently sits at a size of over 350 gigabytes. The Mina team claims that its small size allows users to quickly sync to the network and easily validate blocks, even with limited processing power. This feat is achieved through the use of Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge (zk-SNARKs). The native token of the network is MINA.
Investors clearly see the potential of MINA, with the currency currently up over 300% in the past 90 days.
What Is MINA?
Mina Protocol is an ultralight blockchain that introduces several key changes from its competitors. The Mina blockchain maintains a static size, even as new blocks are added. This aspect is hugely different from other blockchains, which increase in size each time a new block is validated to the chain. Mina does this by using cryptographic proofs that keep a consistent size, smaller than playing 1 second of audio from an MP3 file, meaning that nearly any device can validate the proofs. With an uncapped number of validators, any device can easily access and participate in the network as a node operator.
The Mina Protocol uses a Proof of Stake (PoS) model in which users operate nodes to validate transactions. Holding the MINA token increases your chances of validating a block and getting a reward.
Brief History of MINA
The Mina Protocol was conceived in 2017 by O(1) Labs, who sought to make a network that held true to the original tenets of the blockchain: security, scalability and decentralization. Through cryptography and zk-SNARKS, the MINA team has created a blockchain that incorporates PoS mechanisms, smart contracts and decentralized applications (Dapps).
The Mina network features smart contracts, which are immutable agreements that are validated by the blockchain. These contracts execute as designed every single time, free from interference from any third parties or governments. By stringing together many smart contracts, developers are able to create Ddaps on the network. On the Mina network, these Dapps are referred to as snapps. In the same way a computer can run software, Mina Protocol can run snapps.
The Mina Protocol is overseen by the Mina Foundation, which provides support for the platform.
The MINA Token
The MINA Token serves 2 core purposes on the Mina blockchain: reducing computational requirements for developers and securing the network through PoS mechanisms. Because the network uses an Ouroboros PoS model, node operators can provide MINA to increase their chances of being selected as a validator for a block. Hence, MINA provides a financial incentive to operate the network.
How to Buy MINA
Do you believe that MINA is a good investment? If so, here is good news: MINA is among the Top 100 cryptocurrencies by market capitalization, meaning it is available on many major exchanges.
- Open a Kraken account.
The first step in purchasing MINA is opening an account on a well-regarded cryptocurrency exchange. This process usually only involves setting up an email and password. In many cases, exchanges allow users to enable additional security factors, such as 2-factor authentication (2FA) for added security. MINA is offered on Kraken, and if the project becomes more popular you can expect it to become listed on more exchanges.
Kraken allows many transactions such as buying, selling, exchanging, futures, margin trading and market orders. Kraken puts a lot of effort into providing top notch security for its users. All Kraken accounts offer 2FA, which means that a login attempt needs to be approved on an additional device other than the device making the login attempt. Kraken follows United States Know Your Customer (KYC) standards, which require the personal information of a customer before registering to trade assets. The exchange holds 95% of its cryptocurrency deposits in physically protected and geographically distributed cold storage wallets. Kraken has never experienced a security breach since it started in 2013.
In fact, Kraken was founded as an alternative to another exchange that had suffered 2 security breaches, so security has been at the forefront of Kraken’s design from the very beginning. It undergoes regular penetration testing and has a bug reward system to incentivize reporting potential exploits before they become a problem. Kraken also undergoes proof-of-reserves audits by a third party to ensure that it has all of the cryptocurrency needed if every single investor was to withdraw all their cryptocurrency at once. - Buy a cryptocurrency wallet (optional).
Wallets are hugely important for securing your cryptocurrency, as well as being able to send cryptocurrency to other places in the ecosystem. Leaving cryptocurrency on an exchange can be risky; wallets offer a better level of security.
- Make your purchase.
On Kraken’s exchange, search for MINA. When you have located the currency, follow the steps to buy the cryptocurrency directly, or exchange another cryptocurrency for it. You can then store the cryptocurrency on Kraken, or you can send the currency to another wallet that is either a software or hardware wallet.
Best Crypto Wallets For MINA Tokens
- ERC-20 tokens
Best Hardware Wallet: Ledger
Hardware wallets store cryptocurrencies offline. The user’s private keys, which are used to authorize transactions, are stored on the Ledger device. This process keeps the keys offline and away from hackers who could access the keys from an online location.
- Web3 Security
Best Software Wallet: ZenGo
ZenGo is a mobile application that offers a non-custodial wallet to store private keys. In addition to being a wallet, ZenGo allows users to buy cryptocurrencies in the application.
Current Crypto Prices
The total cryptocurrency market capitalization sits around $2 trillion, as cryptocurrency overall continues to grow in size. ETH and altcoins continue to take market dominance away from Bitcoin. The ETH transition to PoS seems to imply a strong future for decentralized finance (DeFi) and a continued long-term timeline of growth, but the rise of notable competitors to ETH shows that there could be room for a new system, such as MINA, to gain market share.
Is MINA a Good Investment?
MINA claims to have fulfilled the 3 core requirements of a great blockchain network by offering strong security, true decentralization and scalability. The extreme scalability of the Mina Protocol puts it in a unique position to gain traction at a time when Bitcoin (BTC) and Ethereum (ETH) are plagued with scalability problems.
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About Noah Goldstein
Noah Goldstein is an Undergraduate Student at the University of Michigan. Noah is a writer that covers cryptocurrency news for Benzinga. Originally from New Jersey, Noah now resides in Michigan. Noah is an active cryptocurrency investor with positions in Ethereum, DeFi projects, and NFT Ticketing Solutions. Noah believes that blockchain technology will change the world.