JAX Network - A Unique Platform Improving Defi and Enhancing Bitcoin’s Blockchain

The cryptocurrency space has flourished over the last few years. The most prominent of all has been Bitcoin which is widely regarded as the king of the crypto space. Along with a couple of others, investors such as institutional and retail have hopped into the cryptocurrency space. However, it is normal that every current piece of technology always gets succeeded by another which is better than it and solves more problems. The same is true in the crypto/blockchain space, despite the hype and popularity about Bitcoin and other currencies like it, there are problems that haven’t been solved by it. There are also problems that these older blockchains have which newer ones solve.

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Jax Network is a decentralized blockchain-based platform that was created back in 2018. The Jax platform is home to a lot of features, a few of which are; high level of security and high scalability. Additionally, the project has a native stable coin which we will talk about later. This stable coin along with other features the aims at creating a currency that would be used globally, every day while maintaining low fees and faster transaction rates.

To make this possible, the Jax team has anchored the Jax blockchain to that of Bitcoin’s blockchain. This anchorage helps to increase the throughput of transactions on the network and ensures the price stability of the tokens in its ecosystem. There is also a feature called Merge-Mining which makes it possible for Bitcoin miners to mine the Bitcoin and Jax blockchain at a low cost.

Why is Merge mining important? You might ask. The reason it’s vital is that it solves a problem that many Bitcoin miners have, which is the price volatility of Bitcoin affecting the income that they get from mining. We would discuss more Merge mining later on.

Features and Advantages of The Jax Platform

Anchored to Bitcoin’s Blockchain :

Due to Jax’s blockchain being anchored to that of BTC, miners on the Jax.Network ecosystem would be able to mine at least 3 tokens which are; JaxNet Coins, JaxCoins, and of course Bitcoin. The anchorage gives a lot of value to the Jax Platform, a couple of these include; platform security when 51% of miners mine with transparency, reduces the risks of inflation which shards face and enables early adoption by people through having Bitcoin associated with Jax’s platform. The merged mining helps Bitcoin’s ecosystem as well in terms of price appreciation, scalability and stability additionally miners stand to earn income when they merge mine Jax.Network alongside Bitcoin. They will be rewarded with JaxNet coins transaction fees, JaxCoin transaction fees, and Bitcoin’s transaction fees. That’s not all though, the miners could still get rewarded with JaxNet block creation reward or JaxCoin creation reward.

Anchored to Bitcoin’s Blockchain :

• Unlike traditional financial institutions today that control activities done by their users and hold the funds owned by such ones. The Jax.Network protocol due to a blockchain is decentralized. And miners, exchange agents, liquidity providers can carry out transactions without a central body controlling their activities.

Jax.Network Uses Proof of Work :

• It is well known that Bitcoin the most popular product of blockchain uses the Proof of Work mechanism abbreviated as (PoW) to secure the network and mine new coins. The Jax team has decided to use Proof Of work too for the platform. Although (PoS) Proof of Stake is widely used on many blockchains today, we believed that (PoS) leads to reduced decentralization of the blockchain and makes (Pos) based systems prone to control by a third party which could be the government or a hacker.

High Platform Security :

• Since the JaxNet platform is anchored to the Bitcoin blockchain using the merged-mining algorithm. It possesses the same level of security as the BTC network.

Merge mining :

• As we discussed earlier, Merge mining involves mining Jax tokens alongside Bitcoins simultaneously by miners. Most people do criticize the merge mining mechanism because they feel that it could lead to centralization. To prevent this the platform has employed some methods which include; the development of a unique Merkle tree to improve the efficiency at which data is stored on the blockchain, making sure that each hash is received from the previous block header in an orderly manner.
• Secondly, participants with small mining pools are not discriminated against from rewards because of having lesser mining capabilities, rather they too receive rewards on shards too.

Cross Shard Exchange Protocol :

• On Jax.Network cross-shard chains are independent of each other. This feature enhances more decentralization. A problem though with this is an absence of direct cross-shard transactions. To solve this issue a provision has been made by the team. The platform supports a mechanism called SPV-Client called Fly client. This brings ordinary users in and provides them the ability to verify transactions on the blockchain without needing them to download a history of the shard chain.
• Jax.Network also provides an ecosystem for normal users with the right tools to become exchange agents. A person just needs a good hardware device and a good amount of Jax tokens. As an exchange such a user can perform cross-chain exchanges for other users and earn a fee from it, therefore profiting from it.

Proof of work Sharding :

• It is well known that single blockchains like Bitcoin and Ethereum have scalability issues. It has been found that if their blockchain needs to increase its scalability, it would lead to a gradual loss of security on the network and loss of its decentralized state. When Bitcoin and Ethereum’s blockchains are faced with such issues they end up suffering from high transaction fees and limited adoption globally.
• Having seen the problems Bitcoin and Ethereum suffer from, the Jax team has created a strategy that uses a Novel Sharing approach that spreads out the work. Instead of a single chain, Jax.Network utilizes hundreds of independent chains working alongside each other based on Proof of Work mechanisms. Despite the high scalability of the platform, decentralization isn’t compromised.

Cheaper ways to Mine :

• Unlike blockchains like Bitcoin which would require large computational power for mining to take place, a user who wants to be a miner does not need expensive hardware. They don’t need to be approved by a committee to do so and have the freedom to mine according to the number of shards he/she wants to mine.

Presence of Liquidity Providers/Exchange Agents :

• As a result of scaling using pure state sharding, used by the Jax.Network platform, another financial incentive has been added to the ecosystem for those who provide the needed liquidity for cross-shard swaps. The presence of liquidity enables the process of selling, buying, and swapping tokens a lot faster. Liquidity providers who stake their Jax coins to provide the necessary liquidity are known as Exchange agents and they are entitled to earn commissions from facilitating cross-shard transactions.

Token Information

• There are two native tokens of the platform namely; JaxNet coins and JaxCoins
• The two tokens function differently within the ecosystem and each contributes value to the Jax platform.

JaxNet coin :

These are coins minted on the beacon chain of the Bitcoin blockchain. The beacon chain’s work is to add more chains or shards to the ecosystem in an orderly way. The blocks on the beacon chain are mined every 10 minutes and offer 20 Jax coins after the first five years. Within the ecosystem the Jax coin has its uses, which include ;

1. To be used as the gas fee for the transactions that exchange agents make on the platform.
2. To move miners to defend the beacon chain which contains the shard registry.
3. To serve as secondary savings account for the Bitcoin network.

JaxCoin :

This is the second token of the Jax.Network platform. There are coins that are mined on the shard chain of the Jax. Network blockchain. The coins are reserved for use every single day and can is capable of handling large amounts of transactions at a time. Thanks to sharding which provides this advantage. It is important to note however the JaxCoins are created from burning Bitcoin and JaxNet coin base block rewards. This helps to reduce the amount of JaxCoins in circulation due to the fact that a user has to burn the Bitcoin and JaxNet coin block rewards to get them. Therefore a user will only generate such rewards only when he/she needs them.

Reward Function

The team behind the Jax.Network has crafted out a plan that rewards miners based on their hash power contributions to the Jax network. This simply means that if a miner contributed about 200 units of hash power to the blockchain, subsequently the reward for such an individual is 200 JaxCoins. These rewards will exist only on the shard chains of the Jax platform and are what will help the token retain value and avoid excessive prove fluctuations.

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