PRESS RELEASE. Even though Bitcoin and Ethereum are referred to as “cryptocurrencies,” people still treat them like assets instead of currencies. People do not issue cryptocurrencies on a large scale, nor do traders accept them on a large scale. In general, you still can’t use your bitcoin to pay for a cup of coffee at your local coffee shop.
Jax.Network, a project based in Kiev, Ukraine, has sought to solve this problem. The aim is to establish the cryptocurrency for everyday use by first replacing the market for stable coins with the decentralized, scalable, Proof of Work based coin ‘Jax Coin’ and then aiming for a larger global payments market.
A gigantic destination to say the least, but it wasn’t born on a whim. A lot of thought, time and research has gone into the project since it was founded in 2018. At the beginning of the project, members of the newly formed Jax.Network team had one goal: to research and develop a decentralized, scalable and stable coin will not sacrifice security. And that’s exactly what the team had done and achieved from the third quarter of 2018 to the second quarter of 2020.
An elegant and robust solution for the Blockchain Scalability Tremma has been created. The solution was detailed in the White paperThe latest version was released in October 2020.
The scalability solution from Jax.Network
In short, the Jax.Network protocol plans to use its own sharding and merged mining solution to ensure the superior scalability of the blockchain. This means that all shards in the Jax.Network blockchain are highly protected and can be continuously scaled. The Jax.Network team has claimed that their consolidated mining solution is 51% more effective in preventing attacks even on individual shard chains.
Unlike Bitcoin or Ethereum, miners don’t get a fixed reward for solving blocks, but are compensated based on the computing power they contribute to securing the network (within the shard chains).
The purpose of this reward function is to achieve a balance on the network shards. Regardless of whether a miner breaks down to 1 or 100 shards, he will still receive a reward that corresponds to the amount of computing power that he brings into the network.
In addition, this way Jax Coins can claim its status as a relatively stable coin. Since miners are motivated by profits, they follow the law of supply and demand when minting new coins. In other words, miners mint more coins when the price is high and less when the price is low in order to get the price up again. This means that the price of Jax coins will be very stable over time and therefore suitable for everyday transactions, similar to the US dollar or the Japanese yen.
The project even decided to boldly ignore what many other crypto projects have done to achieve scalability, which is to create a blockchain based on Proof of Stake. According to Lucas Leger, chief economist at Jax.Network, “Proof of stake applied to our network would increase the concentration of power and be a sacrifice for decentralization.” Leger firmly believes that Jax.Network’s Proof of Work blockchain can “achieve the scalability required to become a global payments platform without compromising the security of the network.”
In fact, it is all related to the initial distribution of the coins. In the case of Jax.Network, the peculiar role of rewarding broken pieces runs counter to adequate economic incentives when carried out under a PoS consensus algorithm. Indeed, some economic work has shown that the best incentives are maintained when the reward approaches zero and when validation is limited to that “sufficiently large stakeholders”(Saleh, 2020).
In addition, PoW has to be Investment with uncertain returns (Prat & Walter, 2018) due to price fluctuations. Overall, from an economic point of view, you would either prefer a system closer to participation with limited responsibilities (in PoS) or a system based on encouraging entrepreneurship and investment (PoW). Jax.Network has opted for the latter and is more oriented towards the economic incentives of the Shards reward function. ”
From mid-2020 until now, the Jax.Network project has been in the development phase of the project. Some of the best minds in blockchain architecture, cryptography, and software development have been hired to work on developing their protocol. According to the Jax.Network roadmap, they plan to launch their mainnet in the third quarter of 2021, but after speaking to members of the development team, their goal is much earlier, as early as the end of April 2021.
Jax.Network is also hosting and attending some offline blockchain events in the coming months. You will co-organize the BlockchainUA conference on March 26, 2021 in Kiev, Ukraine. The BlockchainUA event claims to be the largest offline blockchain conference in Eastern Europe. Jax.Network said the purpose of these events is “to bring together the community of early adopters, supporters and blockchain enthusiasts who want to influence the market”.
For more information about the Jax.Network project including mission, vision, team, roadmap, solution and more, please visit the official website at jax.network.
References
Prat & Walter (2018). An Equilibrium Model of the Bitcoin Mining Market, Cesifo Working Paper.
Saleh, F. (2020). Blockchain without waste: proof-of-stake. The review of financial studies.
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