Stacks is an open-source, decentralized platform that links to Bitcoin for security and allows dApps (decentralized applications) and smart contracts on its platform. This platform was launched in 2017. It allows users to control their data.
Stacks presents its native cryptocurrency known as STX. The STX works as the fuel to make clarity smart contracts.
Stack a blockchain project’s goal is to make Bitcoin mainstream. According to their team, the native token on this platform solves some of Bitcoin’s biggest problems. Stack aims to solve Bitcoin’s problem, which is not allowing dApps to be built using its technology.
What is Stacks
Stacks is a layer-1 blockchain solution created to carry dApps (decentralized applications) and smart contracts to the BTC (Bitcoin) network. Stacks can bring these smart contracts into the BTC network without changing powerful features, like stability and security. dApps let developers build on each other’s applications to create features that are not plausible in a regular application.
Stacks uses the Bitcoin network as a base layer; therefore, anything on the platform is happening through arguably the most secure existing blockchain (Bitcoin).
This platform gets its fuel from the token on its network called STX. STX helps execute smart contracts, process transactions and register new digital assets on this blockchain. This platform’s name used to be Blockstack but is now known as Stacks.
Other networks also use Stacks for their functions, such as registering cryptocurrencies, paying transaction fees, and publishing clarity contracts on this blockchain.
The cryptocurrency on this blockchain came public through SEC-qualified token offering in the U.S.A. history (4500 people). STX holders can lock Stacks to be a part of the consensus and receive Bitcoin rewards which is the process of Stacking. Holders need to run a full node, publish helpful information every so often on the network, and lock their STX token to earn the reward. One can earn money depending on many factors (like the liquid supply and other assumed parameters).
This network rewards miners on the open Stacks network and allows holders to earn Bitcoin by Stacking to attract users.
PoX (proof of transfer) consensus mechanism built a native exchange between STX and Bitcoin. It makes the token an asset that you can lock to get rewards. This mechanism is different from PoS (proof of stake), in which you can get a yield in the same crypto.
Muneeb Ali and Ryan Shea co-founded Stacks, formerly known as BlockStack (PBC / located in NY/ rebranded in 2020) in 2013, an open-source smart contract platform designed for Bitcoin. The mainnet for Stacks 2.0 came out in January 2021.
Muneeb Ali is a Pakistani American internet entrepreneur and computer scientist. He holds an M.A. and Ph.D. in computer science from Princeton University.
Ryan Shea was the co-CEO from 2013 until 2018, and then he moved on from the project to pursue other ventures like co-founding a new tech startup. Prior to Stacks, he worked as a software engineer.
Blockstack PBC is now rebranded as Hiro Systems PBC. Muneeb Ali is the CEO of Hiro, which lets users build, send, and use decentralized apps on Stacks.
Bitcoin is an influential blockchain, and Stacks tries to extend this system with additional functionality without forking or changing anything about the original Bitcoin system. How does it do that?
It connects with the Bitcoin blockchain via its PoX (proof of transfer)consensus mechanism. Additionally, holders of STX can stack their tokens to earn the reward Bitcoin. Remember, STACKING is not the same as STAKING.
You do not need to run a node or validate transactions to stack. You have to lock your token in your wallet for a set amount of time.
Stacking is when a user mines a new block, and the platform sends BTC (that miners committed) to stackers as a reward to add value to the system.
Stacks presented a new smart contract programming language called Clarity. This language is made to be secure and easy to build with its unambiguous syntax. Algorand (ALGO) blockchain also uses this smart contract-centric programming language.
Why Stacks? It is the first cryptocurrency ever to receive SEC qualification to be sold in the U.S.A. and earned 28 million dollars for STX tokens in 2019.