Mina Protocol is a new type of blockchain that is very small and lightweight by design. It is a “zero knowledge blockchain”. That’s because it can prove that something is true without revealing any information about what that something is. This makes Mina Protocol very secure and private. And it also makes it very fast and efficient.
How does Mina Protocol work?
Mina Protocol uses “zero-knowledge proofs” to verify transactions. We talk about zero knowledge here often. We see it as one of the big breakout trends over the next few years both in Layer 1s like Mina and Layer 2 solutions. For example, you could prove to me that you know the answer to the question “What is 2 + 2?” without actually telling me the answer.
Mina Protocol uses zero-knowledge proofs to verify transactions. So the protocol never reveals any specific information about the transactions. This makes Mina Protocol very secure and private. All 3 important parts of sender, receiver, and the amount are private.
What are the benefits of using Mina Protocol?
There are many benefits to using Mina Protocol. Some of the benefits include:
- Security: Zero-knowledge proofs improve security
- Privacy: It keeps transaction information private.
- Speed: As a lightweight blockchain, it’s very fast. The chain does not need to store a lot of data.
- Efficiency: Not storing a ton of data means it does not need a lot of computing power to verify transactions.
Why should I care about Mina Protocol?
You should care about Mina Protocol if you care about privacy. Many of us, especially in crypto, see privacy as a human right. A protocol like this one programs privacy in so that it cannot harm users. And that’s a good thing we need more of.
Some other popular questions around Mina are:
How does zero-knowledge proof work?
Zero-knowledge proof works by using a mathematical technique called a “hash function”. Bitcoin and Proof of Work chains use hashes too. The hash is the proof of a verified transaction. The hash does not reveal the transaction information like who the sender is.
What are some of the decentralized applications that you can build on Mina Protocol?
Some of the decentralized applications that you can build on Mina Protocol include:
- Decentralized finance (DeFi): DeFi is a system of financial applications using blockchain technology. DeFi applications allow you to access financial services without the need for a third party. No middlemen such as a bank.
- Decentralized autonomous organizations (DAOs): DAOs are organizations that lead by code instead of people. DAOsuse a set of rules that are written into the code. DAOs can manage a variety of assets, such as money, property, and data.
- Decentralized identity (DID): DID is a system that allows users to control their own digital identity. DIDs are not stored on any central server, which makes them more secure and private than traditional digital identities.
Can Mina Protocol Go to $1000?
Not bloody likely as our English friends would say. It trades under $1 right now. At a price of $1000, Mina would be a $1 TRILLION dollar project. (See supply numbers in the next section)
Could it happen? Maybe if Bitcoin became a reserve currency and its value was $20-30 trillion. But that’s a long way off. Bitcoin’s value now is $517 billion. Bitcoin would need to 40x to get to $20 trillion while Mina would have to 2000x to $1000 (see pricing info below).
So I wouldn’t bet on that unless you think the industry will absolutely explode with global adoption AND Mina is the undisputed leader in privacy.
Mina Price Activity
Mina Protocol is currently the #86 project in crypto by market value with a value of $510 million, according to Coingecko. It’s trading at 56.6 cents. The circulating supply is 901 million out of a little over 1 billion in total supply. Important to note that its maximum supply is infinite despite the total supply of a little over 1 billion tokens. It’s been flat over the last 6 months and down over 45% in the last year. But that just means maybe it’s a good entry price for one of the leading privacy protocols in crypto.
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