Mina Protocol, NFTfi, Arweave | Hidden Gems – Web 3
Review Date: May 30, 2022
TOKEN METRICS WATCHLIST
We scored many projects this week. Here are a few you should know about:
- Mina Protocol
- NFTfi
- Arweave
Please keep in mind that some of these projects have not yet been subjected to our code review process, but we want to call them out here for preliminarily catching our eye based on our fundamental analysis process.
Mina Protocol (80%)
Website – Documentation – Whitepaper – Blog
Mina Protocol is a layer-1 that calls itself “the world’s lightest blockchain”. Using a cryptographic primitive known as recursive zero-knowledge proofs, Mina is able to maintain a constant blockchain size of 22kB (in comparison, Bitcoin is currently 407 GB and Ethereum is 722 GB and both are increasing with each transaction). This design allows for anyone to operate a full node from a smartphone and secure the network without the need for sophisticated hardware.
Why we like it
Mina’s underlying technology, recursive zero-knowledge proofs, allows it to maintain a constant blockchain size. In contrast, most blockchains start out small but grow exponentially as more transactions occur. Zk-proofs provide an important opportunity to improve scalability and offer many privacy-related benefits for a wide range of applications.
In addition, Mina’s minute size and off-chain computation nature allow for zk-app smart contracts to be integrated into existing blockchains. A bridge between Mina and Ethereum is currently under development. This bridge will allow for Ethereum dApps (and other dApps, in the future) to leverage privacy-preserving data verification, efficient proofs of large computations, and secure login features of Mina’s zkApps. These features provide the potential for developments in anonymous loans through credit score verification, permissionless web oracles, secure user authentication / login’s without revealing personal data, and many more. You can read more about relevant use cases here.
Investors
Mina raised a total of $121.4 million across four private rounds spanning from May 2018 to March 2022. The most recent round closed on March 17, 2022, and netted $92 million from FTX Ventures and Three Arrows Capital. Notable investors include Coinbase Ventures, Polychain Capital, Paradigm, Circle Ventures, Pantera Capital, Electric Capital, Multicoin Capital, and Dragonfly Capital.
Team
Mina was co-founded by Evan Shapiro (CEO) and Izaak Meckler (CTO). Evan holds an MSc. in Computer Science from Carnegie Mellon University. He is currently serving as the CEO of the Mina Foundation, the corporation that supports the Mina Protocol. Izaak holds a Bsc. from the University of Chicago in Computer Science and Mathematics, as well as studying to obtain a Ph.D. in Computer Science from UC Berkeley. He is currently serving as the CTO of O(1) Labs, the incubators of Mina Protocol.
Token Utility
$MINA is the native token of the Mina Protocol. It will serve as the utility and governance token of the network. The main functions are: facilitating transactions, participating in block production, and purchasing SNARK proofs from the Snarketplace. The initial supply of $MINA is 1 billion tokens but there is no total supply cap.
Where can you buy the token
Binance, Coinbase, Kraken, Gate.io, Coinlist, ByBit
NFTfi (76%)
Website – Documentation – Loan Statistics
NFTfi is a peer-to-peer lending and borrowing marketplace. It enables NFT owners to offer their NFT as collateral to receive a loan in wETH or DAI from another user. Lenders have the option of making loan offers to NFT owners who are seeking a loan. This enables a free market functionality where lenders have the option of providing liquidity to owners of their favorite NFTs. In return, borrowers have access to liquidity that is collateralized by an otherwise idle NFT.
Why we like it
Although lending and borrowing is still a relatively new function in crypto, borrowing against the value of NFTs has been a highly anticipated function. In traditional finance, individuals have the option to collateralize a variety of assets to receive loans, so it makes sense for users to have the option to collateralize their NFTs to unlock liquidity.
NFTfi offers borrowing and lending services on over 150 NFT collections including Bored Apes, Crypto Punks, Mutant Apes, VeeFriends, Art Blocks, Autoglyphs, and many more. This provides flexibility and opportunities for both borrowers and lenders. Borrowers have a wide range of NFTs to put up for collateral, giving them more flexibility. Lenders receive revenue from loan interest and an opportunity to receive an NFT of their choice if the borrower defaults on their loan.
Investors
NFTfi raised a total of $5.89 million in two private rounds (January 2020 and November 2021). Notable investors Animoca Brands, Galaxy Digital, Sfermion, 1kx, Collab+Currency, and Maven11.
The Team
NFTfi is a 15-person team. The protocol was co-founded by Stephen Young and Jonathan Gabler. The current executive team is made up of: Stephen Young (CEO), Ryan Lemmer (CTO), Sarah-Jane Powell (COO), and Andrej Skraba (CMO). The team has notable experience from Input Output (IOHK), Dapper Labs, Samsung, Borealis AI, Outlier Ventures, McKinsey, and UBS.
Token Utility
NFTfi does not have a native token for the protocol. It utilizes wETH and DAI for lending and borrowing on the platform. In addition to Ethereum, there are future plans to expand to the Flow blockchain, as well as others to be announced in the future.
Where can you buy the token
NFTfi does not have a native token for the protocol.
Arweave (84%)
Website – Documentation – Whitepaper – Additional Resources
Arweave is a decentralized file and data storage network. It offers users and applications indefinite storage and access to their files. Anyone can contribute to the network by offering unused storage space on their computer. Arweave describes itself as “a collectively owned hard drive that never forgets” – coining the term “permaweb”, a permanent, decentralized web based on community-driven applications and platforms.
Why We Like It
Arweave has created what it calls the “Immutable Library of Alexandria”. Its goal is to archive the world’s information in an immutable way. Arweave offers a one-time fee for users and applications to store data into perpetuity, setting it apart from other decentralized data storage platforms such as Filecoin that rely on pay-per-use models.
While claiming to be fully decentralized, many current Web3 applications use centralized cloud services such as AWS and Microsoft Azure. In order for Web3 to become truly decentralized, the data that supports these applications must be stored in a distributed network with no single point of failure. As applications and users begin making the transition to decentralized data storage, Arweave will likely see a significant demand increase.
Investors
Arweave raised a total of $22 million across four private rounds spanning from October 2017 to December 2020. Notable investors include Andreessen Horowitz, Multicoin Capital, Coinbase Ventures, Union Square Ventures, and Mechanism Capital.
The Team
Arweave is a 25-person team founded by Sam Williams and William Jones. Sam holds a Ph.D. in Computer Science from the University of Kent and is a former assistant lecturer. William also holds a Ph.D. in Computer Science from the University of Kent and is currently serving as the AI / Machine Learning Lead at Embecosm. The team features notable experience from KPMG, Tech Stars, Ernst & Young (EY), Oxford University, and Elastos.
Token Utility
The native token of the Arweave Protocol is $AR. It is used to pay for data upload fees within the network and to reward network miners for storing
Where You Can Buy The Token
Binance, Huobi, KuCoin, Crypto.com, Gate.io
