Tortola, July 07, 2021 (GLOBE NEWSWIRE) — (Blockchain Wire) Blockchain is facing two major issues; native tokens lack price stability and the reduced throughput these systems can offer. JAX will help solve these issues by anchoring its Blockchain to the Bitcoin Blockchain and enhancing stability and scalability.
JAX is one of the two digital coins associated with the Jax.Network ecosystem. The two coins, JAXNET (JXN) and JAX, are mined on two different chains. On the one hand, JXN coins are mined on the beacon chain of the Jax.Network blockchain. On the other hand, JAX coins are mined on the shard chains of the Jax.Network blockchain. JXN are speculative digital assets that holders will choose to secure, hoping to rise in value gradually. JXN value should represent the utility of the entire network.
Nevertheless, JAX is meant to be of daily transnational use within the ecosystem. Therefore, these coins should possess fiat currency characteristics to be widely accepted as a standard mode of payment across the Internet.
Jax.Network follows effective technical approaches to solve the blockchain scalability problem faced by most crypto projects. Besides scalability, Jax.Network is confident that the JaxNet protocol ensures decentralization and security. Let’s look at what makes JAX coin decentralized, scalable, secure, and stable.
What makes JAX secure, stable, and scalable?
JJax.Network combines a lot of technical solutions to achieve its features. The network runs on a Proof-of-Work (PoW) algorithm, and it’s anchored to the Bitcoin network, adding a layer of network security. Jax.Network also implements pure state sharding to ensure scalability and merged mining to secure the shards of the network. This combination ensures that JAX will help maintain decentralization, security, scalability, and stability for Jax.Network and, in turn, JAX will become one of the most promising stablecoins available on the cryptocurrency market.
JAX is based on a decentralized blockchain ecosystem known as Jax.Network that contributes to the immutability, transparency, and decentralization of the network. A small node can also be profitable thanks to its merged mining and unique Merkle tree that optimizes the blockchain data structure.
JAX is secure due to several reasons. Jax.Network is anchored to and benefits from the more extensive Bitcoin blockchain. A modified Proof-of-Work consensus algorithm makes Jax.Network as secure as the Bitcoin blockchain network.
The stability of JAX is essential in ensuring that the coin serves its intended purpose. Through the proprietary block reward function on the Jax.Network shard chains and the right economic incentives for miners, the stability of the value of JAX coins is guaranteed.
Many blockchain-based projects suffer when it comes to scaling their services toward mass adoption. JAX coins are designed to have a stable value despite increased demand, which helps facilitate multiple transactions simultaneously within the network. Also, low transaction fees and faster settlement times make JAX a favorite for mass adoption.
What guarantees the stability of JAX coins?
Interestingly, JAX is the first stablecoin to achieve stability without being pegged to any external asset or fiat currency. The stability of JAX coins is hugely dependent on a unique reward function that operates on the shard chains within the Jax.Network ecosystem. This function ensures that the coins are issued to miners based on their contribution to the network.
Whenever a miner contributes more to the network, he will be rewarded with more JAX coins than a miner who contributes significantly less – provided they both forgo their BTC+JXN block reward. Similarly, miners will commit to mining on Jax.Network, whenever there is an actual demand for JAX coins. In this case, issuance/mining will only increase when demand needs to be filled.
Consequently, the issuance/mining activity on the ecosystem will reduce whenever there is a demand reduction, or there is no demand. This way, activities on the network are entirely controlled by supply and demand, ensuring that JAX is only issued whenever there is an increased demand for it on the market. This mechanism ensures the stability of JAX coins by protecting them from inflation.
Ultimately, users won’t have to worry about verifying or inspecting the reserve since JAX is not pegged to an external reserve but rather to the network’s hashrate, meaning that people can trust the network based on its market performance.
- Utopian Capital is a global blockchain investment fund that ensures growth and consistent returns of emerging and established market leaders.
- Montreal Blockchain Lab aims to help transform how business is done in all industry segments by sharing blockchain knowledge, helping organizations design and implement Blockchain applications and solving any challenges encountered when using Blockchain.
- Distributed Lab aims to build a financial internet by connecting assets and accounting systems to the Internet and ensuring that customers enjoy a fully digital interaction experience.
- infySEC is an Information Security Services Organization rapidly growing and focuses on Information Security Education, Client Security, Research & Development.
Based on the data above, it is clear that JAX coins are decentralized, secure, stable, and scalable. Jax.Network managed to add all these attributes to their coins by combining technologies within the blockchain ecosystem. Sharding makes JAX scalable, while merged mining is responsible for security. Besides all that, the reward function is partly responsible for stability since the entire Jax.Network ecosystem is decentralized; it is safe to say JAX is a safe bet.