How Jax.Network drives Bitcoin adoption
by Maryna Trifonova, Head of Content at Jax.Network
There are only a few projects that use a merge-mining algorithm, and even fewer of those are merge-mined with Bitcoin. In fact, we can name only Namecoin, Elastos, RSK, and Jax.Network. The reasons for implementing Bitcoin into their blockchain network are obvious and include security, decreased equipment costs, and faster adoption. Let’s focus on the latter in detail here.
Current challenges
Bitcoin is the first ever-created cryptocurrency and number one by coinmarketcap, however, it’s still used rather as a speculation tool than “peer-to-peer electronic cash”, as Satoshi Nakamoto described it in the Bitcoin whitepaper. Obviously, there are some challenges that prevent Bitcoin from gaining mass adoption and being used to pay for a cup of coffee or dry cleaning. Traditionally, three major issues are pointed out, namely:
- “No killer apps”
- Scalability
- Volatility
Regarding the first one, there’s not much to talk about, as there are indeed no applications built on top of the Bitcoin protocol because any application would require high scalability, which, again, Bitcoin doesn’t have. An average transaction takes 10 minutes, meaning the protocol can process 7–10 transactions per second. That’s one of the reasons why the Ethereum protocol managed to thrive and capture such a big crypto market share. Combined with the Ethereum virtual machine (EVM) that allows plugging smart contracts, it offered a better way of settling transactions and popularized decentralized applications (dapps). Currently, there are over 3,000 dapps run on Ethereum, from gaming and finance to arts and collectibles.
But wait, one would naturally mention the Lightning Network here, saying that it allows for improved scalability and decreased associated costs. However, it’s prone to malicious attacks and other fraudulent activity, let alone offline transaction risks. For example, last September, a Reddit user found a vulnerability with routing fees and some of the Lightning Network’s custodial services. Two months later, one of the Lightning Network’s top-three implementations was exploited in a hack. And even if the Lightning Network was perfect, volatility would still prevent BTC from being used as a payment method. So, taking everything mentioned above into account, — for how long can Bitcoin survive?
Our solution
Being the first cryptocurrency ever-created is a big responsibility, which often attracts all kinds of sentiments. New projects emerge here and there trying to outcompete Bitcoin. Jax.Network, in turn, takes a different approach. We want to become an integral part of the Bitcoin ecosystem by introducing a stablecoin solution.
First of all, a truly scalable stablecoin with low fees is an asset to the Bitcoin ecosystem, which is often criticized for the lack of real use cases, as mentioned earlier. By leveraging the sharding technology, our network allows for a virtually unlimited number of transactions, competing with top players of the global payments market. So, our JAX energy-based coin issuance is not only scalable and decentralized but also leverages the security of the Bitcoin protocol. Secondly, this stablecoin solution will rapidly start to gain mass adoption thanks to the DeFi platform, which specializes in issuing derivatives, soft-pegged to JAX, for different countries.
It’s also worth mentioning that our protocol drives Bitcoin adoption among miners as well. Due to extra incentives, miners are encouraged to merge-mine Bitcoin with Jax.Network. Whether miners want to create BTC+JXN or JAX, the Bitcoin network remains in high demand at all times. Moreover, given the fact that to create JAX stablecoins, miners need to abandon their BTC+JXN block rewards, the Bitcoin supply constantly decreases, driving the price up. Along with mining, the team is finishing an auto-profit API that will allow miners to automatically switch their machines to mine the most profitable coins.
Conclusion
Jax.Network is tightly interlinked with Bitcoin, meaning that one influences the other in multiple ways. The increased adoption of JAX would stimulate the adoption of BTC, and vice versa. Our team is highly motivated to bring the first scalable use case to the Bitcoin ecosystem and witness the positive change in the lives of millions.
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