Jax.Network Blog
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Jax.Network Blog

Why decentralization matters

by Maryna Trifonova, Head of Content at Jax.Network

Centralized authorities have accumulated tremendous power in their hands, which may affect communities if a single decision fires back. Therefore, the first aspirations to create a decentralized blockchain-like structure started to emerge in the early 1990s with the purpose of bringing the control back to people.

Centralization vs decentralization

With the development of computers and the Internet, people from different economic backgrounds received access to information. They started to devote more and more time to researching new concepts and creating revolutionary solutions. Soon enough, the idea of a cryptographically secured chain of blocks was introduced by W. Scott Stornetta and S.Haber in 1991. And improved along the way by prominent Bitcoin figures such as Wei Dai, Al Finney, and Adam Back, so it led to the Bitcoin protocol being developed by Satoshi Nakamoto in 2008. Nowadays we are witnessing a major trend towards decentralization, as hundreds of decentralized platforms and applications emerge every day.

It’s reasonable to ask then — why has decentralization become so popular? First of all, a common man learnt that trusting middlemen, i.e. central banks, was a bad idea, as they could lose everything overnight due to a currency crash or ineffective monetary policy. Secondly, tech enthusiasts saw potential in reducing single points of failure and network ownership alignment. Indeed, when there are lots of users, who constantly need to fully verify everything that happens on the network, it’s nearly impossible to do harm or manipulate.

Another crucial aspect of decentralization is its trustless nature, meaning that participants of the network, i.e. peers, don’t necessarily need to know each other. That’s because blockchain is an append-only ledger, so it’s impossible to change the data once it’s stored on a blockchain. Therefore, users of decentralized systems enjoy all the perks of security and transparency.

How we ensure decentralization

Decentralization is something that all blockchains claim to have, however, the quality of decentralization often differs dramatically. Due to the anonymity feature of blockchain, it’s hard to know the exact number of network participants. Therefore, the best proxy to measure the level of decentralization is the cost of being a full node. In other words, more decentralized networks are those with the lower cost of being a full node. Thus, it’s easy to conclude that Proof-of-Work blockchains have higher decentralization than Proof-of-Stake, as the cost of being a full node on Bitcoin, for example, is around $300.

We at Jax.Network advocate for Proof-of-Work and naturally chose this consensus algorithm for our blockchain. Thanks to our unique JaxNet protocol solution, we solve the famous Scalability Trilemma introduced by Vitalik Buterin, which claims that a blockchain can have only two of the three properties: decentralization, scalability, and security. In a way, we introduce a novel approach for solving the scalability problem in blockchain networks based on a specific reward function, sharding, merged mining, and a decentralized value exchange ecosystem.

An important part of our protocol is an equitable merge-mining solution, which is mainly responsible for our protocol not being subject to general concerns of centralization. As we are merge-mined with Bitcoin, we leverage the security of the Bitcoin network and the same level of decentralization. Thus, we ensure that our community always stays in control of their funds, while using our coins. They don’t need to ask middlemen to approve and clear their transactions and pay ridiculously high fees for that. More importantly, everybody will be able to enjoy true decentralization — a borderless society with a global energy-standard monetary system.


Decentralization remains a hot topic, as more people tend to choose the freedom to do whatever they want with their own money. Jax.Network developed a unique protocol that allows people to benefit from the vital properties of blockchain that have become a necessity in today’s centralized world.

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