Mina Protocol: A REALLY CRAZY Crypto Project!!
👨🏫What Is Mina Protocol?👨🏫
Mina Protocol was created by computer scientists Evan Shapiro and Izaak Meckler. Evan and Izaak have been close friends since high school In a sentence, the Mina Protocol is a smart contract compatible proof of stake cryptocurrency blockchain that is designed to have a constant blockchain size of 22kb
💱Mina Protocol Technology💱
Mina Protocol uses something called zero knowledge proofs. Zero knowledge proofs make it possible to prove something without needing to provide any information to support that proof Mina Protocol takes this idea to the next level by using something called recursive zero knowledge proofs Instead of turning every transaction and block into a 22kb snapshot, each additional transaction and block becomes a part of the same 22kb snapshot
⛓Mina Protocol Architecture⛓
Verifiers on Mina are like nodes on Bitcoin. Verifiers add security to the Mina blockchain by holding that 22kb zero knowledge proof Block producers on Mina are like miners on Bitcoin. They stake MINA to create blocks containing transactions and earn MINA tokens from transaction fees and block rewards Snarkers on Mina are the ones tasked with taking snapshots of all the transactions taking place on the blockchain. They do not need to stake any MINA to do this
Mina has an initial supply of 1 billion tokens with no maximum supply. Mina’s annual inflation rate is 12% and this will drop to 7% after 2 years. This inflation schedule can be modified by community vote When you combine Mina’s vesting schedule with its base inflation, Mina’s effective annual inflation rate is somewhere in the neighborhood of 300 percent
📈MINA Price Analysis📈
As basic economics dictates, if supply is greater than demand than prices will fall. This seems to be the case with Mina as it has been in deep red over the last week This poor price action might be due to the rest of the crypto market. Once the markets get back on track however, I think that Mina could see some impressive price action
👨💻Mina Protocol Scalability Issues👨💻
In an interview with Decrypt earlier this year, Mina Protocol founder Evan Shapiro was pressed about how many transactions per second Mina’s blockchain can handle. The answer was just 22 TPS I’m not a cryptographer by any means, but as far as I understand this sluggish speed has to do with how those zero knowledge proof snapshots are created. Each zk proof can take up to 30 seconds to make
🕵️♂Mina Protocol Security Concerns🕵️♂
Mina Protocol’s main value proposition is its small blockchain size. However, if any big problems arise on the Mina protocol, they need to reference archival node data to get the blockchain back up and running. I wasn’t able to pin down how many archival nodes Mina has, but I couldn’t help but notice that these archival nodes are apparently storing Mina’s entire blockchain history on the Google Cloud.
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.