JAX is one of the two digital coins that exist on the Jax.Network blockchain ecosystem. BakerySwap, also known as BAKE, is the native coin that operates on the decentralized finance (DeFi) platform, BakerySwap. BakerySwap is a DeFi platform that uses the BakerySwap protocol to offer automated market-making known as AMM. Essentially, BakerySwap can be categorized as a Decentralized Exchange platform, referred to as DEX, that operates within Binance Smart Chain (BSC).
This article will focus on how BAKE differs from JAX, as they are both native digital coins for their respective blockchain ecosystems. So, without further ado, let’s look at an in-depth analysis of the two coins.
What is BAKE?
The Ethereum blockchain has been the pioneer of the DeFi market. However, as the industry grows, it is evident that more scalable and sustainable solutions are required. The major drawback of the Ethereum blockchain is its new consensus algorithm, Proof-of-Stake, which has been in development for years and has been taking a lot of time to implement.
Binance Smart Chain paved the way for platforms like BakerySwap, with BAKE as its native currency. BAKE is accessible through two available liquidity pools, without BAKE rewards and with BAKE rewards. The rewards are determined by the protocol that uses a multiplier to the number of rewards in each pool.
If you are holding BAKE, you can stake your BAKE coins or bake a meal of your preference. This concept is usually known as a “combo meal.” These meals are treated as collectibles, and they can be used to farm more BAKE coins. Among others, BAKE coins have a different approach to mining/farming compared to JAX coins.
Differences between BAKE and JAX
BAKE and JAX are fundamentally different in many ways. JAX coins are mined on the shard chains within the Jax.Network blockchain, while BAKE is farmed. Farming BAKE is a process of converting liquidity assets into tokens in the Bakery’s liquidity pools. These tokens can then be staked to farm BAKE.
On the other hand, the minting of JAX is governed by a unique block reward function executed on the shard chains within its native blockchain ecosystem. This process ensures that JAX coins have a stable value, making them suitable for decentralized online payments on the Internet.
For a more detailed analysis of the difference between JAX and BAKE, have a look at the comparison table below.
|Date of Launch||2020||2021|
|Maximum supply||277,237,400||No cap|
|Current mining/release date||n/a||n/a|
|Transactions per second (maximum)||Limited||Unlimited|
|Network||Binance Smart Chain||Jax.Network|
Why choose JAX coins?
JAX is a winner in several aspects. BAKE employs a complex mining process that involves integration between platforms. Also, the coin is more of a speculative asset than a stable currency that is not suitable for making online payments frequently. The utility of BAKE is entirely different from what Bitcoin already offers – a speculative cryptocurrency viewed as an asset. JAX coins, however, are designed uniquely through the merged mining process and sharding involved in its network to support multiple transactions per second while remaining secure. Stable JAX coins can also be used as collateral for DeFi projects, bringing stability to the Bitcoin ecosystem.
JAX coins, unlike BAKE, are ideal for online payments due to the certainty in their value. Unlike other speculative cryptocurrencies, JAX coins are stable and secure. They can easily rely upon n-number of transactions per second, which rivals the conventional Visa and Mastercard networks, making JAX a viable transactional solution.