Mina Protocol

6QvX...yBbm

2 Jan 2024

199

Mina Protocol (MINA): A Light Blockchain for Scale

Mina Protocol seeks to solve for scalability, decentralization, and security in blockchain using Zero-Knowledge Proofs.

Summary

Mina Protocol is a blockchain that aims to solve a scalability problem inherent to some Proof-of-Work (PoW) blockchain networks. Mina uses small block sizes and a zk-SNARK system that allows for more people to run nodes. The Mina Protocol aims to give you the ability to keep your data safe and decentralized on a concise and scalable blockchain.

What Is Mina Protocol?

Created by O(1) Labs and launched in 2021, Mina Protocol is a blockchain network that prioritizes security, accessibility, and decentralization to achieve what it calls a “light” blockchain infrastructure. Mina achieves this via the use of a technical innovation known as zk-SNARKs, along with a Proof-of-Stake (PoS) consensus mechanism. The Mina crypto project is predicated on the idea that blockchains like Bitcoin are bound towards centralization due to a contradiction inherent in their structure.
On blockchain networks built with a Proof-of-Work (PoW) consensus mechanism, each network node must confirm the entire data history of the chain before new transactions can be processed. The more transactions on a blockchain, the longer it takes to verify. As networks grow, their data burden becomes larger, and more processing power is required to furnish transactions efficiently. More processing power generally requires more specialized hardware, which can in turn serve as a barrier to entry for many people who want to run nodes.
As a result, those with the resources to actually handle the file sizes are only a powerful few, thus moving the project from decentralized to centralized. Mina Protocol solves this problem with more efficient use of data, and a new technological innovation known as zk-SNARKs.

Zk-SNARKs Explained

In addition to running as a PoS blockchain network, the Mina Protocol uses what’s called “Proof of Validity” to cut down on file size and minimize the computing power required by nodes to participate in network consensus. The zk-SNARK acronym stands for “Zero-Knowledge Succinct Non-interactive Argument of Knowledge.” Zk-SNARKs are essentially snapshots of blockchain metadata, rather than the entirety of a dataset for each individual transaction. As the blockchain becomes larger, these zk-SNARK “snapshots” or blockchain summaries contain a proof of its validity based on metadata, rather than the full blockchain history. These snapshots can serve as proof of the data’s validity, without requiring access to the full blockchain history. Since such a structure means that Mina nodes are processing smaller data sizes, running nodes can be more viable for a wider demographic, and can therefore help promote a more democratic and decentralized network.
Mina believes that as long as the blockchain is valid, then the snapshots will be valid. That means that a longer chain history can be held in a smaller file size. As the blockchain grows, new zk-SNARKs are to be made based off of existing zk-SNARKs so as to maintain an efficient dataset operating on the Mina blockchain.

Mina Protocol Crypto Compatibility

Since Mina Protocol uses zk-SNARKs, decentralized applications (dApps) in the Mina network are called “Snapps”, Snark-powered apps, or even zk-Apps. While these apps may use data from various chains, they are only shared via zero-knowledge metadata, so users’ data is not readable. Using an example of verifying credit scores: a snapshot of your credit file could be created and used as proof that you qualify for a loan. You are not specifically sharing your credit data, but a proof of it that allows the transaction to proceed securely. This design for securely bringing real-world data to the blockchain gives Mina a potential advantage in the decentralized finance (DeFi) space. From a security point of view, you can remain in control of your data.

Roles Within the Mina Blockchain Network

Since the Mina blockchain dataset is relatively small — kilobytes rather than the gigabytes or even terabytes found on other blockchains — most people are able to view and verify the whole blockchain. Mina block producers add transactions to the blockchain, as well as a new zk-SNARK for every transaction they add. Block producers can also bid on zk-SNARKs, which have been made by Snarkers, rather than create their own. This bidding process incentivizes Snarkers to bid at a low cost, to help ensure their SNARK gets bought on the “Snarketplace.”

Mina Protocol and MINA Coins

As of May 2022, the circulating supply of Mina Protocol coin (MINA) was 503,151,296, compared to bitcoin (BTC) with 19,040,743 and dogecoin (DOGE) with 132,670,764,299. Mina wants to incentivize staking, so to begin, the inflation rate of the coin is 12%, and then over the course of five years it will fall to 7%. The native MINA cryptocurrency is used to process Mina crypto network transactions. Staking MINA is also available on various platforms. MINA coins are also the payment method to incentivize block producers and Snarkers, who keep the network running efficiently.
Mina Protocol attempts to solve the problem of scalability using Proof of Validity. Rather than having large data files shared, proofs or SNARKs are shared that allow data to be secure, and the blockchain to be more efficient. Since the chain is smaller in size, a much wider demographic can verify the blockchain, and thus more trust, security, and decentralization are encouraged. Thanks for your helping guys