Traditional blockchains are ineffective in storing the data because it is constantly expanding. The network’s decentralization is negatively impacted by the state bloat issue since fewer users can take part in chain validation. A new generation layer-1 blockchain called Mina Protocol tackles the issue of state bloat. With the help of zk-SNARKs, Mina maintains a constant modest size of 11 kB. Beyond being decentralized, Mina is also more efficient and private than other chains thanks to zk-SNARKs. So What is MINA Protocol? and How to Earn MINA tokens?
Mina Protocol: A beginner’s guide
No matter how many actions are submitted to the network, the Mina Protocol aspires to be a compact blockchain with a fixed size of just 22 kB. This size should make it feasible for everyone to run a node and participate to the network’s security without the need for sophisticated computer gear.
Since blockchains are distributed ledgers of past transactions, maintaining a node (which records the full blockchain’s history) has grown more computationally and energy-intensive as the blockchain has expanded. Because of this, it has frequently been more challenging for regular users to contribute to the maintenance of the blockchain. Since individuals with the highest computer power are the most effective at managing the chain’s enormous size, many believe that this also exposes the blockchain to the possibility of centralization.
To address this problem, the Mina team developed a blockchain that is focused on payments and does not need each node to retain the full history of previous transactions. This blockchain is known as zk-SNARKS. This significantly reduces the amount of computing power required to support a complete blockchain network. According to Mina, if more users could operate nodes and record transactions, additional nodes would be constructed to promote the network’s decentralization and security.
Smart contracts powered by zero knowledge
Zk-SNARKs, which stand for “zero-knowledge brief non-interactive arguments of knowledge,” are a crucial component of the Mina Protocol. This is a computing idea that Silvio Micali, an MIT professor and the creator of Algorand, initially created. It enables users to certify they possess specific data without disclosing that data to one another. Zcash is another well-known cryptocurrency that makes use of zk-SNARKs.
They fall under the category of decentralized applications (dapps), which rely on encryption to establish knowledge without disclosing all relevant details. Users can control data via zkApps, which are more formally zk-SNARKs, or zero-knowledge Succinct Non-interactive Arguments of Knowledge. For zkApps, there are numerous use cases. You can establish your ownership of the asset without providing your identify or check your credit score without divulging your social security number. DeFi, NFTs, and other technologies can all be included in the list. We’ll begin with Proof of Alpha, which allows you to demonstrate your trading profit percentage without disclosing the dollar amount exchanged.
About MINA token: The MINA protocol native token
The native utility coin for the Mina network is called MINA. Mina employs a Proof-of-Stake consensus mechanism in place of miners and a Proof-of-Work (PoW) consensus protocol to confirm transactions and uphold the security of the Mina blockchain. This indicates that users of the network can bet a specific amount of MINA to earn prizes for truthfully verifying transactions on Mina. Additionally, MINA holders have the option to vote for these validators by locking their tokens. Voting for trustworthy and proactive verifiers on the network rewards MINA holders who secure and vote their coins with extra MINA. The protocol’s native utility token, MINA, includes the following usage cases:
- Staking: Users can operate servers and stake their MINA currencies to help protect the network in exchange for staking benefits. As an alternative, users can entrust a third-party staking provider with the responsibility of indirectly staking their tokens. It should be emphasized that each new delegated staking has a lag time of approximately 3 weeks before it takes effect.
- Network transaction fees: Users will pay network trading fees (in MINA currency) for each communication with Snapps (dApps) on the Mina System.
- Block production: Block production companies are validators who reach consensus and secure the blockchain. They receive block rewards for pinning MINA tokens and creating new components on the blockchain.
How to earn Mina tokens?
Anyone who can open a CoinList wallet and deposit MINA into their bank statement is qualified for MINA staking rewards. If you deposit or buy MINA on CoinList, you might well be eligible for staking rewards if you keep it in your CoinList Wallet. Staking rewards are automatically enabled when you transfer MINA into your CoinList Wallet. There is no action required on your part to participate. Please keep in mind that MINA held on CoinList Pro do not receive staking rewards.