Stacks (STX) - a first-level blockchain solution, designed to migrate smart contracts and decentralized applications (DApps) to Bitcoin (BTC). These smart contracts go to bitcoin without changing any of the features that make it so powerful, including its security and stability.
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What is Stacks (STX)?
These DApps are open and modular, which means that developers can create apps to create features that are simply not possible in a regular app. Because Stacks uses bitcoin as its base layer, everything that happens on the network is settled on the most widely used and secure blockchain in operation, bitcoin.
The platform runs on the Stacks token (STX), used to support the execution of smart contracts, transaction processing and the registration of new digital assets on the blockchain. This project was previously known as Blockstack. It was renamed to Stacks in 2020 to separate the ecosystem and open source project from Blockstack PBC.
Project features
Stacks aims to take what makes bitcoin so powerful and extend it with additional functionality.
The uniqueness of the project lies in the following:
| Connection | Stacks connects directly to the Bitcoin blockchain through its Proof of Transfer (PoX) consensus mechanism, which forces miners to pay in BTC to mint new STX tokens. |
| Rewards | In addition, STX token holders can also hoard their tokens to earn bitcoin as a reward. |
The project introduces a new smart contract programming language, known as Clarity. It has appeared to be safe and easy to create thanks to its unambiguous syntax. This programming language, focused on smart contracts, is also used by the Algorand blockchain (ALGO). Additionally, STX was the first cryptocurrency to launch a $28 million Reg A+ cash offer for its tokens in July 2019.
Buying and selling a token
Under the newly updated economic policy, launched with Stacks 2.0, shipments of the newly unlocked STX in circulation will be reduced by approximately 10% from the original schedule. STX is available for trading on several well-known exchange platforms, including:
- Binance;
- KuCoin.
Stacks uses the Bitcoin blockchain as its base layer. As a PoW-based blockchain, Bitcoin uses the combined efforts of thousands of miners and nodes to protect the network from attacks, making it computationally and economically unfeasible to undermine the network. In addition, the project introduces its own consensus model, known as PoX, which is a new mining mechanism. Users transfer the base currency (BTC) to STX mining, which effectively loads the security of the Stacks blockchain with BTC.