What is Stacks STX?
Stacks STX is a groundbreaking cryptocurrency project that aims to unlock the full potential of Bitcoin. As the leading Bitcoin Layer-2 solution, Stacks enables smart contracts and decentralized applications (dApps) to use Bitcoin as a secure foundation. This innovative approach extends Bitcoin’s capabilities without altering its core structure.
Key Points:
- Brings smart contracts and dApps to Bitcoin
- Uses Bitcoin as a secure base layer
- Powered by the Stacks (STX) token
The Origins of Stacks
Stacks was founded in 2013 by Princeton University alumni Muneeb Ali and Ryan Shea. Originally known as Blockstack, the project rebranded to Stacks in 2020. It was designed as a layer-1 solution that leverages Bitcoin as its base layer.
How Does Stacks Work?
Stacks operates through the interaction of two main parties:
- Miners
- Stackers (not to be confused with “stakers”)
Their interaction is governed by a unique consensus mechanism called Proof of Transfer (PoX).
Stacks Mining
In the Stacks ecosystem, miners don’t mine in the traditional sense. Instead, they:
- Exchange already mined Bitcoin (BTC)
- Commit BTC for a chance to earn STX coins
- Follow a halving schedule similar to Bitcoin’s
The Role of the Stacks Blockchain
The Stacks blockchain:
- Stores user identity and transactional metadata
- Interacts with applications in the Stacks ecosystem
- Allows verification of changes using the Bitcoin blockchain
Smart Contracts on Stacks
Stacks smart contracts:
- Are written in a special coding language
- Developed and tested on Algorand
- Can be verified using the Bitcoin blockchain
The Stacks (STX) Token
STX is the native cryptocurrency of the Stacks network. Its functions include:
- Fueling smart contracts for Bitcoin
- Rewarding miners on the open Stacks network
- Enabling holders to earn Bitcoin through “Stacking”
- Voting on protocol upgrades
- Participating in the selection of app reviewers
- Total supply is 1.82B STX. Current price is $1.66. $STX is listed on popular exchanges such as Binance, Coinbase, Okx, Bybit, Kraken and Kucoin.
Advantages of Stacks
- Bitcoin Integration: Stacks leverages Bitcoin’s security and network effect.
- Smart Contracts: Brings programmability to the Bitcoin ecosystem.
- Open and Modular: Developers can build on top of each other’s apps.
- Earn Bitcoin: STX holders can earn BTC through Stacking.
- Innovative Storage: Uses a bespoke storage system called Gaia.
Stacks Ecosystem
There are many innovative projects lining up the Stacks ecosystem:
Remember, as with all cryptocurrencies, it’s essential to do your own research and understand the risks before investing or participating in the ecosystem.
