Cryptopolitan 2021-09-10 03:00:00

JAX vs. Stablecoins: Comparative Analysis

Stablecoins have played a vital role in volatile cryptocurrency markets, helping investors and traders minimize losses. JAX, one of the native tokens of the JaxNet protocol, performs the same function, but in an entirely different way. In our analysis of JAX coin versus stablecoins, we compare these approaches.  What is JAX? JAX is a native token of the Jax.Network blockchain ecosystem. The coin is rewarded to miners as payment for mining on the shard chains of the network. These shard chains serve as the backbone of the network to ensure the network is secure and scalable at all times. As opposed to other blockchains, Jax.Network does not create an asset-pegged stablecoin. The exchange rate of JAX will float according to the market forces of demand and supply. Ultimately, JAX coins are underwritten by the electricity cost that is necessary to create them. The relatively stable cost of the electricity creates a lower bound below which miners cannot print these coins. Therefore, the value of JAX coins will remain stable without pegging them on any basket of stable real-world assets. JAX achieves stability by ensuring a proportionate reward for every miner based on the computing power they contribute to the entire network. There is an economic incentive for miners to mine the coin over shard chains, so mining JAX coins follow the law of supply and demand. As demand rises, miners will add more computing power to the network...

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