What is Mina Protocol (MINA)?
Mina Protocol (MINA) calls itself a "lightweight" blockchain. This means that the size of the blockchain is very low. This brings several advantages, including that the network is easier to decentralize and scale.
MINA is the native token of Mina Protocol, and after we've told you more about Mina Protocol's blockchain, we'll explain how to buy the MINA cryptocurrency using iDeal, SEPA and other payment options.
What is Mina Protocol?
Mina Protocol is a blockchain that is considered "lightweight" among all other blockchains. By weight, we mean the size of the blockchain, which for Mina Protocol is 22 kB at all times, regardless of the number of transactions performed over the network. This is one of the key features of Mina Protocol and is a major advantage over other blockchains.
Many other blockchains, think of Bitcoin or Ethereum for example, are incredibly heavy. To join a blockchain's network, you must first download a copy of the blockchain. It can sometimes take days or weeks to download all the data, simply because such blockchains take up an awful lot of space. The biggest problem is that they only get heavier as time continues.
Mina Protocol's blockchain is smaller than the pictures on your smartphone, even when a lot of transactions are performed over the network.
Who founded Mina Protocol?
Mina Protocol was founded in 2017 by Evan Shapiro and Izaak Meckler. They wanted to develop a blockchain that would be decentralized and scalable. They both work for O(1) Labs, which is the company behind Mina Protocol. Shapiro is CEO of this company, and Meckler CTO.
How does Mina Protocol work?
Mina Protocol ensures that the blockchain takes up virtually no space. The way they accomplish this is interesting.
zk-SNARKS
The developers of Mina Protocol have used a special cryptography technique to ensure that the blockchain stays small. This technique is called zk-SNARKS, which stands for "zero-knowledge succinct non-interactive arguments of knowledge". It is not a new technique, as it was conceived years ago by Algorand's founder, Silvio Micali. The Algorand project, just like ZCash, uses zk-SNARKS.
With zk-SNARKS, the blockchain is geared towards making payments where it is not necessary for nodes to be in possession of historical data. With a blockchain like Bitcoin, this is necessary. The nodes use the historical data to check if someone can perform a certain transaction, to be able to avoid a duplicate expenditure.
So how do the nodes of Mina Protocol make sure that someone does not double spend? With zk-SNARK, nodes receive a cryptographic proof for performing a transaction. This proof is many times smaller than the copy of an entire blockchain.
Proof of Stake
Not only zk-SNARK ensures the security of the Mina Protocol blockchain. In fact, the network uses the Proof of Stake (PoS) consensus algorithm. This not only makes the blockchain more secure, but also ensures that even less memory and space is needed for the nodes in the network.
When you want to perform a transaction over Mina Protocol, you will first need to set up a node. So, this means you can't perform a transaction without a node, which some see as a disadvantage. The advantage is that you don't have to give up much computer power to the blockchain, and you receive a reward for the computer power you give up.
There are two different types of nodes that you can run within the network. The first is the block producer, which adds transactions to new blocks, thus expanding the blockchain. This is not the easiest node to run.
Snark workers are nodes that are fairly easy to set up. You give some of your computing power to the blockchain's network, allowing cryptographic proofs to be developed.
It does not matter which node someone sets up, because in both cases the user is rewarded with MINA tokens. The block producers will receive more tokens, as they also cede more computing power to the network.
What are the main advantages of Mina Protocol?
Unique solution to a problem that many blockchains face;
The threshold to join the network is low because it takes almost no computer power or memory;
By using the network, no matter what type of node you run, you always receive a fee in MINA tokens;
The network is more decentralized because new nodes can easily join.
MINA token
MINA is the native token of Mina Protocol. With this token, transactions can be performed, and nodes are rewarded with it. You can also use the MINA token as an investment. By speculating on a rise in the price of MINA, you can earn a return on your investment.
Before you invest in MINA, it is important to always do your own research and not just follow the advice of others. This way you will learn why an investment goes right or wrong, so you can adjust your strategy accordingly in the future.
Where do I buy Mina Protocol (MINA) tokens?
MINA tokens of
Mina Protocol can be bought safely and easily at Coinmerce. If you already have an account at our exchange, first log in and then go to the 'Coins'-page in the menu. Here you can use the search bar to look for Mina Protocol.
At Coinmerce, it is possible to buy MINA with iDeal, SEPA, Giropay, Bankcontact, Sofort, EPS and MyBank.
Don't have an account at Coinmerce yet? That's no problem, because you can easily create an account. After your account is created and verified, you can start buying MINA crypto.
How can you stake Mina Protocol (MINA)?
Mina Protocol is a blockchain that uses Proof of Stake. Anyone has the ability to set up their own validator node in Mina Protocol's network. You will need to have technical knowledge to set this up correctly. When you have succeeded in doing so, you can earn a return on the MINA tokens that you will stake via the validator.
If you want to
stake MINA in an easier way, you can do so at Coinmerce. Here you stake MINA directly from your wallet or the coin page. There it is also possible to buy MINA with iDeal, and then stake them directly. Please note that it is only possible to stake MINA for a minimum of 10 euros at Coinmerce.
Staking Mina Protocol on Coinmerce can generate a return of 6% per year. You have the option to choose for how long you want to stake, as Coinmerce offers flexible staking. During this period it is not possible to move or use the MINA tokens. The MINA tokens you earn from stake will be immediately visible in your Coinmerce wallet.