Jax.Network is a hashed proof-of-work blockchain connected to the Bitcoin network that mines two currencies: JAX and JAXNET (JXN). JXN is extracted on the Jax.Network beacon, while JAX is extracted on block threads.
JXN Coin Operations produces a fixed number of reward coins (20 coins per block), making it a speculative asset that reflects the value of the Jax.Network payment system. It is used to entice bitcoin miners to integrate Jax.Network mining and beacon protection, pay gas fees for decentralized listings and other transactions, and act more as a secondary savings account for bitcoin miners. In the long run, the company says this will encourage BTC miners to continue protecting the network even if the BTC mining reward approaches zero.
JAX is a stablecoin designed for everyday transactions. Blockchains are created when miners identify their needs, allowing the Jax.Network blockchain to expand almost indefinitely.
JAX relies on mining combined with Bitcoin to create a highly scalable and tradable cryptocurrency that incentivizes miners while ensuring the greatest security of the PoW blockchain. It also avoids high Ethereum gas fees.
“Stablecoins are a major player in the cryptocurrency market, but they are very inefficient because they are tied to fiat currencies or need a lot of security to be a viable solution,” said Vinod Manoran, CEO of Jax.Network. “This situation primarily negates the purpose of using cryptocurrencies. We may be late, but we believe that our technology will solve these problems.”
Stability without capital
Jax.Network is not associated with any fiat currency and is not backed by a secure cryptocurrency or algorithm to maintain a stable price. Instead, it relies on market forces to produce JAX when needed to maintain a stable price. This is done in several ways. First of all, the portion reward function is proportional to the total processing power. As such, the cost of production depends on hash costs, so miners will not produce JAX coins if the production cost is higher than the cost, the company said.
More information from JAX.NETWORK here
Second, to produce JAX, miners must burn JXN and BTC block rewards, which makes it very easy for miners to decide whether or not to write JAX.
Bitcoin was chosen as the PoW anchor cryptocurrency, according to the company, because it is extremely secure due to the large number of miners. In addition, Jax.Network should provide Bitcoin scalability and stability, while avoiding the need to have liquidity for its own currencies.
A new paradigm for sustainable mining
It is worth noting that when Jax.Network talks about “integrated mining”, it means not only that you can combine Jax.Network with bitcoins, but also that you can crack several entries at the same time to increase transaction fees. One of the main reasons for this is the 51% protection of entries against takeover attacks. The company claims that this implementation of merged mining is not compromised by decentralization.
“Our reins have a unique reward function that is proportional to the web’s hash rate. This allows us to peg screen coins at a cost per unit of computing power. At the protocol level, we encourage miners to print this currency (JAX) only when there is a demand for it. Therefore, a valuable coin Stable attracts the Bitcoin network. Thus, miners can choose which currency they want to mine: (BTC + JXN) or JAX, which are more profitable due to stable income,” the company wrote in a post on Medium.
The launch of the Jax.Network testnet, followed by the token sale and the launch of the mainnet, is scheduled for the third quarter of 2021, with the fourth quarter devoted to marketing to expand adoption of the JAX stablecoin.
The new stablecoin project aims to create a decentralized solution that does not block large amounts of capital and does not rely on an algorithm to maintain its value level.