What is the goal of Jax.Network?

Our goal is to establish JAX as a universal standard for the quantification of economic value.

What is JAX? How to quantify 1 unit of JAX?

The cryptocurrency created on top of Jax.Network shard chains is called JAX. It’s a unit of economic value as defined by the JaxNet protocol. If you are interested in knowing more about JAX you can read our academic paper.

What is the utility of JAXNET (JXN) coins?

To pay for the security of Jax.Network by incentivising Bitcoin miners to merge-mine Jax.Network
To be used as gas fees for exchange agent listing transactions and other critical transactions
To incentivise miners to defend the beacon chain that holds the shard registry
Serve as a secondary savings account for the Bitcoin network
To incentivise miners to defend the Bitcoin network when the BTC reward drops to 0
To reflect the value of the transactional payments ecosystem of Jax.Network.

Are JAX coins good for DeFi?

Yes. JAX coins are stablecoins with a market-driven issuance rate, ensuring low inflation and stability in value (measured by the cost of hashrate). JAX coins are stable and decentralized. They are not pegged to any fiat currency, avoiding centralization that defeats the purpose of cryptocurrencies in the first place. JAX coins are not collateralized, so your capital does not have to be locked and stay idle to maintain value against highly volatile digital assets. JAX coins will bring the DeFi ecosystem to Bitcoin as an alternative stablecoin to hedge your risk, pay yields or for lending and borrowing operations, etc.

What’s the Jax.Network’s solution for the Blockchain Scalability Trilemma?

The first sharded PoW network. Jax.Network introduces a novel approach for solving the scalability problem in blockchain networks based on a specific reward function, sharding, merged mining, and a decentralized value transfer ecosystem.

Why anchoring to BTC helps our economics?

Our block reward function on shards is proportional to the aggregated hashrate on the network. If our network difficulty follows the one of Bitcoin, this implies that it is an exponential curve. Thus, ensuring the security of the network would be paid with inflation, rendering our JAX transactional coins useless for day-to-day payments in the long run. Technical aspects aside, anchoring to BTC helps us to put some control on coin issuance. Indeed, we make it costly for miners to print JAX since they have to choose between minting BTC and JAXNET or JAX by sending their BTC and JAXNET to an invalid address.

What is the k-coefficient, and how does it work?

Productivity gains in the chip manufacturing sector are substantial, much higher than the average gains in the economy. As you may know, our JAX coins are pegged to the hashrate of Bitcoin. If this cost decreases, that means that it is now cheaper to produce JAX coins. As miners now have an incentive to print more JAX, its market exchange rate might depreciate, thus breaking down our peg. To avoid such a scenario, we introduced a k-constant. This value ranges between 0 and 1 and is voted by miners during each epoch. The selected value at the protocol level is the median of the miner’s votes. K is then multiplied by the difficulty to determine the miners’ block reward on shards.

Why could JAX become mass adopted?

Technologically BTC and ETH have been proved difficult to scale. Anchoring Jax.Network to Bitcoin allows the latter to scale in a more sustainable way than Lightning and to have a network for daily payments with the same security level as Bitcoin. Besides all that, BTC is by default deflationary. People stand to hold deflationary assets and spend stable assets and inflationary assets. Since JAX is stable in value, which is measured in the cost of computing power, the chances of it being mass adopted are higher.

Is Jax.Network open-source?

Jax.Network is an open-source platform that is published on GitLab, so anyone can make a contribution and use it.

How can we have stable value without a peg or collateral?

JAX coins are only mined on demand. Their cost of production is tied to the cost of Bitcoin hashrate, putting a lower bound under which coins cannot be sold. We assume that miners are profit-motivated and would not sell JAX below its marginal cost of production. At the higher bound, miners’ economic incentives also play out. Indeed, if the market rate of JAX is increasing, they are better off printing JAX instead of JAXNET. JAX market rate will fluctuate within these lower and upper bounds, just like any fiat currencies. JAX coin issuance follows market dynamics, not some predefined and constraint algorithm.

How can JAX coins be used?

The easiest way to transact using JAX coins would be to download our wallet application and use it for sending and receiving JAX.

How is it different from other cryptocurrencies?

Existing cryptocurrencies suffer from the following problems: they are deflationary, they can’t scale, they’re not user-friendly. JAX coin doesn’t have these three limitations.

How can I buy/sell JAX coins?

You will be able to buy/sell JAX coins through major exchanges after our launch.

How can I commercially benefit from the JaxNet protocol?

1) By becoming a miner
2) By becoming a transfer agent

How can I get JAX coins for free?

In the future, you will be able to participate in programs where you can get JAX coins for free. We may set up a promotional faucet during the early stages of the network to give away some of our JAX coins for free. Follow our news and announcements.

Why should I hold JAX coins?

If you decide to hold an asset in our network, you should hold JAXNET coins or Bitcoins instead. You shouldn’t hold JAX coins. JAX is a transactional coin and holding it does not provide any financial benefits. Hence, it will be wise to utilize JAX coins only for consumption purposes.

Is the system friendly to newbies/average users?

The core protocol requires an intermediate level of expertise to use the network, however, we will facilitate the creation of different user-friendly solutions in our ecosystem such as light wallets, physical cards, mobile-tap applications, etc. They will help non-technical users and newbies to use our network without the need to understand our core technology.

How can I invest in Jax.Network?

You can invest by participating in Jax.Network’s private sale which will finance our company. In return, you will get a certain quantity of beacon chain asset coins which could shoot up in value when our technology reaches mass adoption.

I’m not a miner, can I become a transfer agent?

Yes, as long as you have liquidity in the network, you can join a transfer hub and stake your coins to facilitate transfers and earn transfer fees.

What is the difference between the Beacon chain coins and the Shard chain coins?

Beacon chain coins are an asset for people who wish to store value in our network and speculate on the value of Jax.Network. Beacon chain coins are deflationary and allow for only 10 transactions per second.
Shard chain coins are scalable and stable and hence mainly suited for consumption. They have no speculative value.

Is JAX an inflationary or deflationary currency?

There are two coins in Jax.Network. The beacon chain coins which are more like an asset coin are called JAXNET and the shard chain coins which are used for transactions are called JAX. JAXNET has a fixed reward per block and JAX issuance only happens when miners forgo the Bitcoin and JAXNET block rewards. This is the only way to print more JAX coins, which hold only a transactional value directly pegged to Bitcoin hashrate.

Are we sure JAX is not inflationary?

The coins are printed by miners only when the expected profit of printing JAX coins is superior to the expected reward of Bitcoin and JAXNET blocks. The JAX coin is issued only when there is a transactional demand for it and hence supply follows demand.

What is the role of the transfer hub?

Although Jax.Network is decentralized, it has a certain delay in the finality of the transactions performed in the network due to the inherent limitation of the consensus algorithm. To overcome this limitation, transfer hubs act as entities that can provide instant transaction facilities by absorbing the finality risk in exchange for a fee.

What are JAXNET coins useful for?

JAXNET is the Jax.Network beacon chain. Theoretically, anchoring to Bitcoin would be enough to ensure the expansion of the network. However, this would require the Bitcoin blocks to store certain data that is not useful for Bitcoin at all. For instance, the shard signaling system, for dynamic shard expansion or the k-coefficient will be in the beacon block header. Having this data on Bitcoin would force a hard fork. We want Bitcoin to stay true to itself, and for these practical reasons, it is necessary to have a beacon chain. Moreover, as Bitcoin block reward tends towards zero, transaction fees will increase. JAXNET coins do not have a capped supply, they will be used as a savings account on Jax.Network.

What transaction throughput can Jax.Network support?

Jax.Network can potentially scale to unlimited throughput as long as there is a demand and sufficient network resources for it.

What is the JAX coin’s value based on?

JAX value is derived from mining business efficiency, including the cost of mining equipment, the cost of electricity, and a bunch of other factors.

Is there a recommended mining pool that I can join?

Jax.Net mining pool is the official MP for the Jax.Network blockchain. It will start when mainnet is launched.

Is there a transfer hub where I can stake my coins to earn more?

Jax.Net transfer hub is the official transfer hub for the Jax.Network blockchain.

What are the min requirements for running a node?

Requirements depend on the type of the node and the number of shards that it maintains. For example, the full shard node, which maintains a single Bitcoin node, 6 fully loaded shards and the beacon chain, has the same requirements as 5 full Bitcoin nodes working in parallel.

How fast are transactions?

It depends on the transaction volume. Jax.Network doesn’t provide instant transaction finality as any other blockchain. We expect that a casual transaction will be included in the chain and get three-block confirmations in around a minute. However, it’s recommended to wait for more block confirmations when a huge sum of money is transferred through a single transaction.
If you need instant transactions, we recommend you to become a member of any transfer hub which will issue you instant transaction devices via physical cards or mobile tap for a fee.

Are anonymous transactions possible?

Transactions in Jax.Network don’t reveal any data about participants except their public keys. It works similarly to Bitcoin and many other blockchains. However, Jax.Network doesn’t provide an option of untraceable transactions similar to the one used in Monero, ZCash, and other blockchains focused on privacy.

What is the total emission of JAX?

The emission of JAX is unlimited. However, the minting of new coins requires natural resources that are limited.

What is the total emission of JXN?

The emission of JXN is unlimited at a fixed rate of 20 JXN per beacon chain block. However, at a certain point in the future, the impact of the 20 coins on the total supply will be negligible.

How secure is the system?

The network is secured by Proof of Work executed by miners of the Bitcoin network. Code wise, our system, therefore, relies on the well-known and secure code-base used in Bitcoin core. Check our GitLab, to review our code.

How is Jax.Network decentralised?

Jax.Network is the permissionless blockchain network based on the PoW consensus. Its decentralization is comparable to the decentralization of Bitcoin.

What is the consensus algorithm?

Jax.Network’s design is based on the SHA-256 Proof-of-Work consensus algorithm which includes a setting convenient for weak nodes so that they can manage their workloads by managing the number of shards they are participating in.

What is the block reward function?

The Jax.Network mining reward system is flexible and balanced in terms that every participant is rewarded proportionally to his effort in maintaining the network across all the shards they are mining. Small mining farms with little bandwidth and storage and big mining pools can coexist in Jax.Network.

What is FlyClient?

Jax.Network incorporates the idea of super-light FlyClient described in the paper by Bunz et al.
The super-light client reduces the volume of data required for synchronization to shard chains in Jax.Network.

How is difficulty calculated?

The mining difficulty is calculated as the expected total number of hashes calculated by the whole network before somebody will find the block with a good hash. You can find the detailed description in our academic paper.

How do we ensure the security of all the shards?

Since our system allows for merged mining, all the shards can share the same hashpower and hence making it difficult for a malicious miner to overpower a shard.

Can I mine as an individual miner?

You can be an individual miner if you have access to a great amount of hashpower. However, if you don’t have a lot of hashpower, it’s recommended that you join a mining pool that will provide you with regular mining rewards in exchange for a fee. Also, our official mining pool is linked to our official transfer hub and can help you earn extra profit by also staking your tokens for the purpose of facilitating cross-shard transfers in our system.

What hashing algorithm is used to mine Jax.Network?

Jax.Network uses the same hashing algorithm as Bitcoin, SHA-256. Anyone holding this type of rig can merge-mine our network.

Could you, please, recommend the best equipment to merge-mine JAX and BTC at the same time?

Any SHA-256-compatible mining rigs will do the trick. The only difference is how efficient these rigs are, therefore, how profitable.

Does merged mining lead to centralization?

No. Merged mining in Jax.Network is designed to keep the balance between strong and weak nodes. Such design doesn’t cause the centralization of mining. To know more about our merged mining design, please read our academic paper.

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