Why Jax.Network supports Bitcoin

Every DeFi project aims to solve a problem ailing the financial world. The founder of Jax.Network, Vinod Manoharan, aims to build a fully decentralized stablecoin which is more reliable than USD-pegged stablecoins.  Although the Jax.Network blockchain is anchored to the Bitcoin protocol, its native token dubbed JAX shouldn’t be as volatile as BTC. One of the basic features of the technology is decentralization, which most stablecoins, including USDT and BUSD, have not been able to accomplish.  In this article, we discuss the main reason why Manoharan and his team work with the Bitcoin protocol and what benefits Jax.Network gets from supporting  Bitcoin.  How Jax benefits from the Bitcoin blockchain Curb shard inflation  –  Anchoring to the Bitcoin blockchain helps to reduce inflation that might take place across Jax.Network shards. Since miners can merge-mine the Jax.Network beacon chain, shard chains, and Bitcoin, they can only mint JAX  on the shard chain by burning their coming Bitcoin and JXN reward. This process helps reduce the rate of JAX issuance. It aims at transfering the value of BTC + JXN into JAX. Miners can arbitrage what is the most profitable for them: mining BTC+JXN or JAX, depending on the market conditions.Promoting early adoption – Implementing JAX into the Bitcoin protocol could be used to promote early adoption of the coin. Boost network security –...