Merge-mining BTC with a greater revenue on Jax.Network
by Maryna Trifonova, Head of Content at Jax.Network
It’s not a secret that most miners mine two or more coins at the same time in order to get a higher profit. This process is called merge-mining or merged mining. We at Jax.Network drafted a unique offer that benefits miners in multiple ways. Read the article to learn more!
A brief intro to merge-mining
First of all, let’s go over the basics of merge-mining. The notion was brought up a year after the release of the Bitcoin protocol by Satoshi Nakamoto himself in one of the forum threads. So basically he pitched the idea of mining two coins simultaneously without losing much of the overall mining performance. The community liked the concept and here we are more than 10 years later using it in Jax.Network.
It’s important to mention that the first use cases of merged mining appeared back in 2011 when the Namecoin blockchain was updated with the Bitcoin algorithm. Some other examples of merge-mined networks include Dogecoin and Litecoin, Bitcoin and Elastos, and Bitcoin and RSK.
How JAX is merge-mined with Bitcoin
One of our latest protocol updates added Bitcoin as the anchor chain, meaning that people can merge-mine BTC along with our native JAXNET coins. This decision will also allow miners to benefit from extra block rewards and transaction fees from JAXNET coin transactions and JAX coin transactions.
By leveraging the hashing power of Bitcoin, we provide the enhanced security to Jax.Network. This model is pretty solid and works as long as 51% of the BTC miners mine Jax.Network honestly. However, there’s nothing to worry about as the reward for mining our coins is high enough to attract many miners while reducing centralization and increasing security.
In the JaxNet protocol, we use the modification of the Merkle tree data structure which we called the Shard Merkle Tree. Here we described how it works in detail. The main thing you need to remember is that this technology helps to ensure the immutability of data while mining multiple shards simultaneously.
Some people may argue that it’s really hard to create a proper sharding system based on a PoW consensus and merge-mining. But we provide a counterargument saying that the sharding implementation in JaxNet ensures the proper system of incentives that reward participants according to their effort in network maintenance. As a result, Jax.Network preserves the high level of decentralization, even on a global scale.
Extra profit for miners
When Jax.Network is merge-mined with BTC Network, miners get JAXNET coins almost for free except for the slightly increased electricity cost as merged-mining requires more power. We are working towards reducing these costs for miners so that they could enjoy maximum rewards at a lesser price. Besides all this, miners who merge mine Jax.Network through our official mining pool Jax.Net will also have lesser pool fees at 1% as Jax.Net pool aims to make most of its revenues from Jax.Network mining activities.
Even though miners will have to burn BTC to create the stablecoin JAX, JAXNET coins are rewarded when BTC is merged mined along with Jax.Network. And in addition to the reward, miners will get some extra value in terms of JAXNET transaction fees and JAX transaction fees. Since Jax.Network brings scalability and stability to the Bitcoin network, it will be a huge boost for the entire ecosystem and miners who don’t merge-mine Jax.Network along with BTC will be at a disadvantage.
Conclusion
As you can see, we created a truly remarkable network that benefits miners greatly. There are no reasons not to merge-mine BTC with JAXNET coins, as you don’t lose anything by switching to our Jax.Network. As a matter of fact, you gain our coins for free on top of your BTC reward plus transaction fees from both networks.
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