The advent of cryptocurrencies has given rise to a new financial universe, but the technology has suffered from a lot of criticism. One of the key arguments used to discredit cryptocurrencies like Bitcoin and Ether is the price volatility the assets are often prone to.
While price volatility is common with cryptocurrencies still in their infancy, a number of solutions have been developed to combat the problem. Stablecoins limit price fluctuations by tracking the price of other assets. Their value is often pegged to traditional fiat currencies such as the US dollar, and they can be thought of as a type of synthetic asset. Stablecoins are designed to be worth the same as the asset they’re pegged to, and they’re not restricted to fiat currencies.
In recent years, stablecoins have grown to become one of the most fundamental components of the cryptocurrency landscape. Today they account for over $30 billion of value on the Ethereum network.
Uses of stablecoins
Imagine a world where you don’t need to give away up to 10% from the sum of your cross-border transaction and up to 5% of a regular transaction to a payment processor such as a bank or payment system provider. You don’t have to entrust third parties with your funds and personal details. You don’t even have to hold a banking account. All you need is a wallet application on your smartphone. It sounds cool, doesn’t it?
We at Jax.Network aim at bringing this dream to life by introducing a new global payment ecosystem. Using our stable JAX coin, you will be able to send money home to your family that lives in a different country and pay for goods and services for a reasonable fee. If you are a business owner, you can pay your international suppliers in the cryptocurrency that has a stable value and low transactional cost. That allows you to decrease the price of your product and attract more customers, hence, extra profit.
Limitations of blockchain technology
- Immutability
- Slow processing
- A waste of resources
Advantages for people using Jax.Network over existing payment systems
- Reduced cost
- Decentralization
Unlike other stablecoins, our JAX coin scales through math and its equilibrium price is purely market-based. It’s not collateralized by any asset but rather pegged to the hashrate, i.e. the cost of one unit of computing power. So 1 JAX is backed by 1 unit of hashrate. That is a universal exchange rate that guarantees all JAX coins are mathematically equal around the world. Of course, more efficient miners will have a slight market advantage compared to less efficient miners. However, these differences account mostly for access to cheap electricity.
TECHNOLOGY
- Universal Reward Function
Jax.Network block reward is based on PoW difficulty and hence the expected value of each JAX coin is mathematically equal across the Universe. - Equitable Merged Mining
Our JaxNet protocol is based on the merged mining technique to secure shards from shard-over attacks. Its mining reward system is flexible and balanced. Hence, every participant is rewarded proportionally to his effort in maintaining the network.
Sharding - Jax.Network uses pure state sharding. It means that accounts, transactions and validators are distributed between shards, so that verification of a certain transaction doesn’t require any knowledge of the preceding transaction history in other shards.
- Decentralized Transfer Ecosystem
In Jax.Network, a robust transfer ecosystem following a decentralized exchange protocol facilitates cross-shard transactions.
SUMARRY
Through our development, Jax.Network has come up with an elegant, yet robust solution which allows mining to not only secure our decentralized blockchain network but also allows for the scalability of it.
Jax.Network uses the technique called ‘Sharding’ to increase the scalability of our blockchain network. In essence, Sharding is splitting a large data set, such as a full blockchain ledger, that is then run independently in parallel with each other. This increases the number of transactions a blockchain network in proportion to the number of shards, but is a huge sacrifice on security, as the amount of computing power needed to take over an individual shard is significantly less.
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Official Website: https://jax.network
Twitter: https://twitter.com/CommunityJax
Facebook: https://www.facebook.com/network.jax/
Telegram Channel: https://t.me/jax_network
Official Group: https://t.me/jax_chat
LinkedIn: https://www.linkedin.com/company/jax-network/
LitePaper: https://jax.network/wp-content/uploads/2021/06/Jax.Network-Lightpaper.pdf
Author:
Forum Username: menhamau521
Forum Profile Link: https://bitcointalk.org/index.php?action=profile;u=2823237