Jax.Network Bitcoin 2.0: BTC Merge-mined Scalable Stablecoin
About Jax.Network
Jax.Network is anchored to the Bitcoin blockchain that follows the JaxNet protocol and issues scalable, stable, and decentralized JAX coins. The Jax.Network team aims at making these coins a universal standard for the quantification of economic value. Established in 2018, the company united professionals from all over the world to build a blockchain network based on the Proof-of-Work consensus mechanism and pure state sharding as a scaling solution. Jax.Network uses a specific merge-mining technique. It allows miners to mine multiple shards simultaneously without splitting their hashrate and get rewards proportional to their effort. Being an open-source project, the JaxNet protocol can be used by anyone to build new projects on top of it and contribute to the development of the ecosystem.
Scalability is still a major concern for blockchains
Even though cryptocurrencies are becoming increasingly popular as vehicles for speculation, the real adoption of cryptocurrencies hasn’t been happening quite as quickly as many crypto evangelists were suggesting. One of the main problems holding back the adoption of cryptocurrency is the lack of scalability that’s apparent with practically all popular blockchains.
To put it simply, Bitcoin and Ethereum are not ready for real mainstream use, as they can only process a very limited amount of transactions at a time – Bitcoin can handle about 7 transactions per second, while Ethereum tops out at about 15.
The difficulty of creating a useful cryptocurrency that is also highly scalable is best described with the “scalability trilemma” problem. The scalability trilemma consists of 3 aspects – security, scalability, and decentralization. The idea is that any given blockchain can only satisfy 2 of those aspects at a time. For example, Bitcoin is secure and decentralized but severely lacks in scalability. For designers of new blockchains and cryptocurrencies, the scalability trilemma is somewhat of a holy grail – the search for a cryptocurrency design that would provide high levels of security, scalability, and decentralization is still on.
The value of JAX coins relative to transactional value
One way to tackle these issues is to measure economic value differently. However, permissionless blockchains do not have a whole lot of data you can rely on to build a fully decentralized stablecoin. The only reliable data accessible and verifiable is, in Proof-of-Work networks, hashrate, or the computing power allocated at a certain time on the network. Jax.Network uses the Bitcoin hashrate to peg the value of its coin. One coin is produced at the cost of one unit of computing power. At the marginal level, it means that the cost is pegged to the electricity cost of producing one unit of computing power.
By destroying the asset coins (BTC and JXN) and mining transactional coins (JAX), the supply of the stablecoins will strictly follow the demand and is therefore entirely market-driven. Profit-oriented miners will naturally follow the law of supply and demand in order to maximize profits and would not print more coins unless it is more profitable to mine JAX instead of BTC and JXN. This means that when the price of JAX rises, miners will increase their hash rate, mint more coins, and distribute them accordingly. The reverse is also true. If there is no demand for JAX coins, miners will just verify transactions on the network and earn transaction fees but will mine only BTC + JXN. Therefore, no new JAX will circulate. Jax.Network just automated the issuance of stablecoins.
JAX coins maintain their stored value even if a fiat currency loses value. This stored value protects JAX holders from losing their purchasing power in the event of inflation of a fiat currency. The stability of JAX coins is maintained by controlling the issuance of the coins over Jax.Network.
SUMARY
Right now Jax.Network is at its Proof of Concept stage moving forward according to the roadmap. Eventually, the project wants to transform the organizational systems in the world using blockchain technology. To achieve this, the team has plans to build the necessary infrastructure, including a mining pool, transfer hub, blockchain explorer and API, a crypto wallet & instant messenger.
Official Website: https://jax.network
Litepaper: https://jax.network/wp-content/uploads/2021/06/Jax.Network-Lightpaper.pdf
Twitter: https://twitter.com/CommunityJax
Facebook: https://www.facebook.com/network.jax/
Telegram Channel: https://t.me/jax_network
Official Group: https://t.me/jax_chat
LinkedIn: https://www.linkedin.com/company/jax-network/
Author:
Forum Username: OnkLLssAple
Forum Profile Link: https://bitcointalk.org/index.php?action=profile;u=3198790