Driving Value
Real business backs the value of the Lynx utility coin.
The Lynx Blockchain was adapted to be great for permanently storing critical data directly on its blockchain. The Lynx development team created the Logware API to allow customers an easy-to-use bridge to store data on the Lynx Blockchain. Customers can pay Logware monthly or one-time to have API access to write data to the blockchain. Reading the data is free and unlimited.
Think of the Logware API as a platform that customers embed into their applications, behind the scenes.
API stands for Application Programming Interface. Not everyone knows that. It’s like a unique portal that allows my software to talk to your software, using a standard protocol. The Logware API is a turnkey solution for storing your business’s critical data records on a blockchain.
Logware buys Lynx tokens on the open marketplace and uses the Lynx to store data for customers. However, unlike other projects, Lynx tokens are destroyed (or burned) each time Logware stores data. So whenever data is stored, the effect reduces the circulating supply of Lynx cryptocurrency. Sure, miners get paid to verify transactions, but the actual cost of storing data does not go to miners; it gets destroyed — forever.
This dynamic creates constant “buy pressure” on the exchanges where Lynx is listed. Sure, traders and speculators are passing Lynx back and forth daily. Still, Logware regularly buys Lynx at market rate to pay for the storage cost of the Logware API. Think of it like the gasoline you buy for your car. You acquire it to travel, and after you’ve used it, you must obtain more. Unlike gasoline, Lynx has a limited supply. The economic model flips Lynx from being inflationary to deflationary. The circulating supply of Lynx is reduced slowly over time.
Naturally, you would ask how many Lynx get created with each block? Miners that win earn 1 Lynx (or two if they use the Tipsy Miner incentive program) + any fees within transactions. Eventually, the amount of new Lynx mined with each new block is less than the Lynx used to store data for the Logware customers.
How do miners make money? Because of unique chain economics, miners don’t earn a profit mining Lynx, at least not now. Miners can run a node on a Raspberry Pi (an inexpensive computer that costs around $35) and have it mining in under 20 minutes with almost no work. So the cost of time and materials to mine Lynx is minuscule. That’s why no short-term profit incentives exist for Lynx miners.
The reduced price volatility is the result of conservative chain economics and easy entry to mining. With a few exceptions, Lynx has a stable price that slowly increases over time. The street price of Lynx does not correlate directly to the investment of time, electricity, and material costs by miners. It’s another characteristic that sets this project apart, and as a result, Lynx is environmentally friendly.
Lynx is a mature project (four years in its current iteration and nine years since its genesis block) that doesn’t get much press because that isn’t the project’s goal. Instead, the goal is to provide an environmentally friendly solution for customers looking for low-cost critical data storage for a generational time frame. As a result, Lynx’s cryptocurrency value isn’t determined by its price on an exchange but by its utility to store data for customers.
Last modified 1yr ago