Unlike other blockchains such as Bitcoin that give fixed rewards for mining BTC, Jax.Network rewards miners proportional to their efforts. Rewards proportional to miners’ efforts are beneficial to the network because it ensures that even small-scale miners get rewarded. The method contrasts with most Proof-of-Work (PoW)-enabled blockchains that favor mining pools and users with extensive computational resources. What does a reward proportional to efforts mean? To understand how Jax.Network incentivizes miners proportional to their efforts; you need to know how a PoW consensus algorithm works. In a PoW-enabled blockchain, miners invest their time, effort, computational power, and electricity to solve a complex computational problem. Any node that successfully adds a block to the distributed ledger gets rewarded with new coins. In the case of Bitcoin, such a node receives 6.25 BTC (as of 2021). The intensity at which a node solves this computational problem is measured by the hashrate. For successful mining, miners have to attempt different combinations while solving the computational problem assigned with the block header, starting with a nonce of zero. The process continues with permutations and combinations until the target is achieved. Miners with extremely high hashrates have a better chance of reaching the target nonce sooner than others and, hence, receive higher rewards th...
