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Almost all blockchain projects advertise themselves as the ultimate solution to the perennial problem that is scalability. Blockchain projects have traditionally struggled with scalability, decentralization, and security, a phenomenon that ETH founder, Vitalik Buterin, calls the Blockchain Scalability Trilemma.
Jax.Network is a blockchain solution designed in a unique way to solve this trilemma without compromising on the primary principles of blockchain technology. A notable difference between the Jax.Network blockchain and other blockchain networks is that it has two native digital tokens – JAX and JXNET (JXN).
Although the choice to have two native coins on one blockchain network is a relatively new concept, Jax.Network believes designing a protocol with two coins has fundamental scalability impacts that are not achievable within other blockchain networks to date.
JXN is one of the native tokens of Jax.Network. JXN coins are mined on the network’s beacon chain, which adds new parallel chains known as “Shards” to the blockchain.
A reward system awards a maximum of 20 JXN per valid block mined on the Beacon chain. This means that 20 JXN coins are available for mining on the Beacon chain, and it takes roughly 10 minutes to mine.
JXN’s reward system is quite similar to that of BTC. In essence, JXN is intended to be speculative in nature. Hence, cryptocurrency users can buy and hold JXN, expecting the value to increase over time. This is the same situation with BTC today; many users choose to hold BTC due to its ability to rise in value. Hence, JXN, just like BTC, is perceived as a speculative digital asset that acts as a store of value rather than a digital currency for making daily transactions.
Unlike JXN, JAX coins are awarded to miners who mine blocks on the shard chains on the Jax.Network blockchain. The continuous creation of shards, also known as sharding, gives the Jax.Network blockchain its scalability potential.
JAX coins have a stable value, making them an excellent cryptocurrency to handle daily transactions and payments. According to Jax.Network, JAX does not need to be pegged to an underlying reserve of assets like other stablecoins. Instead, JAX coins are issued following a strict economic rule of supply and demand. This is achieved by rewarding miners according to the amount of computing power they contribute to maintaining the Jax.Network blockchain.
So, whenever there is a low demand for JAX, miners will automatically reduce their contribution to the network in response to low potential profits. Similarly, miners will commit more computing power to Jax.Network’s shard chain whenever there’s a surge in demand. This mechanism ensures that the value of JAX remains stable, making it for mass adoption as a payment method.
The differences between JXN and JAX
JXN and JAX have fundamental differences in their use cases. One coin is intended to be used as an online currency with fiat-like properties, while the other acts as a store of value, like BTC. Below is a summary of the differences between JXN and JAX coins.
|Unstable value that rises and falls according to demand
|Mined on the beacon chain
|Rewarded to miners for mining blocks on the shard
|Digital currency for speculation
|Digital currency for payment
The Jax.Network blockchain is powered by two coins, JAX and JXN. However, there are fundamental differences between both cryptocurrencies. JAX coin is designed to serve as a payment solution because of its relatively stable value, fast transaction time and asset security. JXN, on the other hand, represents the actual value of the Jax.Network, and it is an asset that will rise in value as more people adopt the Jax.Network.