Cryptocurrency tokens have been designed to solve a number of financial and transactional problems. They may be used for investments, payment, as media to swap other cryptocurrencies, and as protection against inflation. Moreover, as cryptocurrencies evolve, their platforms evolve too.
Platforms are becoming more specialized and even working together to offset each other’s weaknesses. Thus, when deciding which cryptocurrency to purchase or invest in, it is important to be aware of the pros and cons of the cryptocurrencies that you are considering putting into your wallet.
1inch token
1inch tokens are ERC-20 tokens that are built on the Ethereum blockchain. They were developed to work with the 1inch platform and facilitate cryptocurrency swaps. 1inch tokens are used to pay fees and collect rewards on the 1inch platform. It is important to know that 1inch token is not designed to be used as an investment, payment, or protection against inflation.
1inch tokens are strictly designed to enable swaps on the 1inch platform. The number of tokens is capped and they are not pegged to a fiat currency. If you want to cash them out, you’ll have to swap them for another token and then exchange that token for a fiat currency.
The 1inch platform is a decentralized platform that operates as an automated market maker (AMM). It allows users to pick and choose between multiple decentralized exchanges (DEXs) and have access to their liquidity pools. This means that users can visit the platform, review the DEXs on it, decide which DEXs will give them the lowest transaction fees, and provide them with the most liquid cryptocurrency.
The 1inch token can be used to pay transaction fees on the platform. Plus, the fees can be further discounted if the users use CHI gas tokens to pay their transaction fees.
1inch tokens can also be used for voting on the instant governance protocol. On this protocol, all token holders can vote on matters affecting the token and the platform. It is one of the most decentralized and democratic platforms on the crypto market.
Since the 1inch platform uses other DEXs to support its swaps, it does not have to maintain its own liquidity pool or charge transaction fees. Instead, it takes a percentage of the fees charged by the DEXs on its platforms as a payment. Also, since it only facilitates swaps, users’ cryptocurrency remains in their wallets and no personal information or private keys are shared with the platform.
JAX coin
JAX coins can be used mainly for payments, collateral for DeFi applications, and for cryptocurrency swaps. It can be easily exchanged for fiat currency and be used to buy different cryptocurrencies on other exchanges. This digital currency is very scalable because it is not capped. It can be swapped for other currencies, and its minimal governance system gives it room to grow.
Jax.Network is a decentralized platform that charges users for all transactions done on the platform. Users can receive discounts if they pay their transaction fees with JAX and are using the coin in the transaction itself. Interestingly, the Jax.Network platform, in the future, will allow the users who are heavily staked to participate in decision-making because it is assumed that they will not make decisions that are financially detrimental.
JAX coin vs 1inch token comparison chart
| 1inch token | JAX coin | |
| Launch | 2020 | 2021 |
| Circulating Supply | 167,501,500 | 0 |
| Maximum Supply | 1,500,000,000 | No cap |
| Peg | No | Pegged to the cost of the Bitcoin hashrate |
| Cash Reserves | No | No |
| Platform | 1inch | Jax.Network |
| Governance | All token holders | TBD, still in development |
| Token | ERC-20 | Native token |
| Decentralized | Yes | Yes |
| Scalable | No | Yes |
Conclusion
When deciding between JAX and 1inch, carefully consider the advantages that each gives you. JAX is more flexible, liquid, and can be used for a wide variety of transactions, whereas 1inch can only be used to pay transaction fees and for token swaps. JAX coins are backed by a rewarding algorithm, where its coin issuance depends on supply and demand.
Therefore, its value fluctuates within a small upper and lower bond, making it stable in purchasing power in the long run. A second native token on Jax.Network, JXN also has some protection against inflation and is designed to be held as an investment.
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