Is it a bad idea to give reward proportional to effort?

1. Is it a bad idea to give rewards proportional to efforts? jax.network

2. 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. jax.network

3. 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. Any node that successfully adds a block to the distributed ledger gets rewarded with new coins • 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. jax.network

4. What does a reward proportional to efforts mean? • The process continues with permutations and combinations until the target is achieved. Statistically speaking, any miner will receive a reward proportional to their respective hashrate, abiding by the principle 1 CPU = 1 vote. • Miners also compete for transaction fees. Miners who mine lots of blocks are awarded transaction fees. Theoretically, this covers electricity consumption, data storage costs, and extra data processing fees. jax.network

5. The rationale for rewards on the Jax.Network shards • Jax.Network uses sharding to ensure the scalability of the network. Sharding is simply the partitioning of data on a blockchain to reduce the workload. • This reward mechanism is more like an incentive that encourages both large- and small-scale miners to mine JAX and is also crucial to the stability of JAX. Ultimately, it helps the network to minimize centralization on the network. This data split is known as "shards." JAX is a native cryptocurrency of Jax.Network, which is awarded for mining on the shard chains • Unlike Bitcoin, miners on the shard chains are rewarded with new JAX coins based on their computing power inputted in maintaining the network - verifying transactions on the chains. jax.network

6. A perfect solution to block creation problems • Developers modified the effort to reward proportionality schemes to reflect the reality of mining and motivate miners to continue mining blocks. It is impossible to prevent collisions on the blockchain if multiple nodes are mining simultaneously. • The miner gets a partial reward for the effort spent on solving the problem, and no effort goes to waste. Ideally, miners are motivated to be the first to solve the problems and get the expected reward. jax.network

7. A perfect solution to block creation problems • This partial reward system also deters selfish mining and miners seeking rewards through harmful conduct to the Jax.Network blockchain. Having a fixed block reward would break this equality. Imagine, for the sake of argument, a ten-block reward on each shard. • Shard one has 1000 blocks, 10000 coins in circulation, and shard two has only 100 blocks or 1000 coins. The exchange rate between the two shards becomes 1:10 instead of being 1:1. Having a proportional reward solves this issue. jax.network

8. Conclusion The effort to reward proportionality schemes works when properly implemented. Jax.Network rewards miners based on their mining efforts and miners who may have solved the problem simultaneously but whose blocks were not placed on the main blockchain. Overall, reward proportional to effort achieves the goal of promoting many transactions with low processing delays by having a high block creation rate while keeping all shards equal in value. jax.network

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