Why do we believe Jax.Network is Bitcoin 2.0?
By Maryna Trifonova, Head of Content at Jax.Network
As you know, Jax.Network is merge-mined with the Bitcoin network. Such a technological combination creates a way for BTC miners to earn extra JXN block rewards and transaction fees of all three cryptocurrencies, namely JAX, JXN, and BTC. However, it is worth noting that our protocol provides numerous benefits not only for miners but for Bitcoin users as well. Do you wonder how? By leveraging sharding, a process of splitting data between multiple chains, we increase scalability and stability of the blockchain, without compromising on decentralization. And since our blockchain is tied to Bitcoin, it improves the above-mentioned characteristics of the latter.
Our JAX coins are tied to the issuance of Bitcoins and, hence, they are an extension of the Bitcoin network. Satoshi’s vision, in general, was to bring about a global payment system that no central authority can tamper with. And Bitcoin fell short from it, as it eventually ended up becoming an asset. We solved this problem by bringing a stablecoin suitable for day-to-day payments. And since we are merge-mined with the Bitcoin network, it implies that we are a technological extension of Bitcoin. We work in sync with the Bitcoin network and our economics have an influence on the economics of Bitcoin. To learn more about that, feel free to check this article.
Our main argument is that the Bitcoin network itself has everything needed to grow exponentially and bring value to people. It just requires a proper infrastructure which will unleash its potential. Jax.Network aims to assume this role by providing scalability and stability to the network.
Thanks to our energy-underwritten stablecoin, people around the world will be able to actually bring Satoshi’s idea of a global means of payment into life. Cross-border transactions, day-to-day payments, merchant payments — all of these will be carried out instantly and at a really low cost. So, in a way, we bring transactional utility to the Bitcoin network, which benefits everyone. Transactors get a convenient means of exchange, miners get a profitable business model, and investors get a long-term asset (JXN) in their portfolios.
One might argue that Lightning is the best way for Bitcoin to fulfil its promise as a cheap and easy way to transact. Despite being fast, the Lightning network suffers from two main issues. Firstly, every transaction is done in BTC, therefore Lightning does not fix Bitcoin volatility, on the contrary, it continues to benefit early adopters over anyone else as long as the Layer-2 solution gets adopted. Indeed, Bitcoins are locked and used outside the network, removing them from circulation, increasing the scarcity of BTC, and thus its market price. Secondly, each time you want to transact with someone, you need to open a new payment channel on Lightning. The openings and closings of payment channels happen on Bitcoin. So, imagine if a large part of the world population moves into that direction, the Bitcoin network will still be congested very quickly, rendering payment channels very expensive to open and close. We believe our technology can solve these two issues more efficiently and cheaply when cryptocurrencies get mass-adopted.
We figured out a way to improve Bitcoin and, hence, improve the lives of various people. By introducing a stablecoin to the Bitcoin network, we increase scalability, stability, and decentralization of the network. In addition, we introduce more real-world applications which actually benefit people.
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