What is Stacks (STX)?

What is Stacks (STX)?

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Stacks is a layer-1 blockchain solution intended to enable the use of smart contracts and decentralized applications (DApps) on the Bitcoin network (BTC). Bitcoin gains these smart contracts without sacrificing any of the attributes that make it so strong — including security and stability.

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These DApps are open and modular, which means developers may build on top of one another's applications to provide features that would be impossible to implement in a traditional app.

Because Stacks is built on top of Bitcoin, all transactions on the network are settled using the most extensively utilized and the most secure blockchain in existence – Bitcoin.

The platform is fuelled by the Stacks token (STX), which is utilized to power smart contract execution, transaction processing, and the registration of new digital assets on the Stacks 2.0 blockchain.

Stacks was previously known as Blockstack, but it was renamed in the second half of 2020, followed by the mainnet launch of Stacks 2.0 in 2022. The rebranding aimed to distinguish the ecosystem and the open-source project from the company Blockstack PBC.

 

Component Stacks (STX)
Technologies PoX, Microblocks, Clarity Programme
Market Capitalization $2.9 Billion+
Open-Source Yes
Consensus Mechanism Proof of Work
Smart Contracts Yes
Founders/Authors Blockstack PBC
Launch Date January 2022
Circulating Supply of Coins 1,291,874,719 STX
Maximum Coin Supply 1,818,000,000 STX
Mining-based Coin? Yes
Is Stacks a Stablecoin? No
Does Stacks have a burn rate? Yes
Does Stacks have a Whitepaper? Yes, the white paper can be viewed here

 

Evolution and Development of Stacks

Muneeb Ali and Ryan Shea launched Blockstack PBC. Muneeb Ali co-founded Stacks in 2013 after earning an MA and PhD in computer science from Princeton University.

He continues to work with the platform as the CEO of Hiro Systems PBC. Ryan Shea, the platform's second co-founder, also served as co-CEO from 2013 until 2018, when he left the project to explore other projects, including co-founding a new digital firm that is presently operating in stealth mode.

Shea formerly worked as a software developer. Blockstack PBC, a firm developing the Stacks technology, has secured around $75 million in venture finance and token sales. The mainnet of the Stacks blockchain was released in January 2022.

 

What makes Stacks unique?

The first and most popular cryptocurrency, Bitcoin (BTC), has captivated consumers' hearts with its unique qualities. Due to its high economic efficiency, the currency has become the king of cryptocurrencies.

However, there are still significant network flaws that several blockchain initiatives offer to fix. One of the most prominent issues that the Bitcoin network struggles with is scalability concerns. These main flaws have sparked worries among blockchain projects, leading to solutions. It is a layer one blockchain project that addresses Bitcoin's scalability issues.

Stacks is a network platform for smart contracts and decentralized apps. The blockchain platform relies on Bitcoin for security and transaction processing.

Stacks Blockchain supports smart contracts and decentralized apps. It also facilitates the production of transferrable virtual assets.

The network secures these operations using the Clarity programming language to enable smart contracts. Clarity is a compiler-less programming language. This programming language is helping Stacks deliver smart contracts to Bitcoin.

Specifically, it leverages predictable source code to execute smart contracts and publish them on blockchain nodes.

The system uses this technique to help secure the Stack ecosystem using the definable programming language. Stacks and Bitcoin are two linked blockchain networks.

Intriguingly, both blockchain networks are independent. They are separate networks linked by Proof-of-Transfer. Miners may use this technique to send new cryptocurrency and smart contracts to other Stack network users.

 

What are the main uses for Stacks?

The Stacks token (STX) enables a more cost-effective and efficient app infrastructure that is related to Bitcoin. Additionally, stacks play a critical role in motivating open mining, which is essential on an open network; else, closed federated networks would be used.

Stacks are currently being used to mine Stacks-based PoX tokens, enabling developers to reward early supporters with a Stacking yield that can be utilized to produce a standard BTC Stacking yield.

Stacks (STX) has provided incredible functionality to its environment, particularly the Bitcoin network.

It offers additional functionality to the Bitcoin network since Bitcoin is static and not adaptable. Users may launch new network features via its interaction with Bitcoin without having to alter Bitcoin itself.

Furthermore, scalability is a significant difficulty for the Bitcoin network. As a result, the Stacks blockchain aims to address Bitcoin's scalability challenges.

Because Bitcoin has a limited amount of transaction space, stacks help to increase transaction capacity. Stacks also use Bitcoin's efficient security and finality to secure transactions inside the ecosystem. For each block created, the network utilizes Bitcoin to settle transactions on the Bitcoin blockchain.

 

What is the future potential for Stacks?

Stacks (STX) is a significant addition to the blockchain sector due to its unique characteristics.

Given that it enables customers to profit from the advantages of combining smart contracts with Bitcoin functionality, it is accurate to assert that Stacks' services will increase Bitcoin acceptance and usage in the crypto sector.

The Stack blockchain's superior functionality enables us to forecast the network's success in the sector. The opportunity it provides users to earn BTC just by participating in the Stacks network is another reason to join.

 

Price analysis on Stacks

Stacks was initially launched in 2022, and its price analysis over the past few months is as follows:

 

  August September October November December to date
STX Price High $1.50 $1.67 $2.58 $2.42 $2.90
STX Price Low $1.20 $1.13 $1.38 $1.83 $1.84
Market Cap $1.83B $2.04B $3.3B $3.1B $3.74B

 

Price prediction on Stacks

STX is expected to continue its upward trajectory in the next weeks, hitting an all-time high of $3.17. Stacks can hit the five-dollar threshold in the next years, according to investors. This will depend on Bitcoin’s performance in addition to how rivals such as Ethereum, Solana, Cardano, and others perform.

 

Which wallets are the best option for storing Stacks?

Digital wallets make it possible to transfer and receive cryptocurrency in small amounts. Unlike physical wallets used to transport cash, cryptocurrency wallets do not contain tokens; they just offer a means for managing them on a blockchain through credentials.

STX can be sent, received, and stored on the following Stacks wallet options:

  1. Ledger Nano S
  2. Ledger Nano X
  3. Trezor Model T
  4. KeepKey
  5. Hiro Wallet

 

1. Ledger Nano S: Ledger Nano S connects to the user's computer through USB and has an integrated OLED display for double-checking and confirming transactions, as well as buttons on the device for manually verifying transactions.

The Nano S is PIN-protected and simple to set up and operate. It accepts Bitcoin, Ethereum, and a variety of other major cryptocurrencies and ERC20 tokens.

 

2. Ledger Nano X: The Ledger Nano X is the successor to the Ledger Nano S, with a list of more than 1250 supported currencies, Blockstack and ERC20 tokens.

It costs $119 and improves on its predecessor with a bigger screen and simpler Bluetooth communication with mobile devices, allowing for use without a computer.

 

3. Trezor Model T: TREZOR also provides the Model T, a hardware device that debuted in early 2018 that has a huge colour display and supports over a dozen major cryptos in addition to any ERC20 token.

With a touchscreen, double transaction verification, PIN protection, and PIN lockout, it is another wallet that puts security first.

 

4. KeepKey: KeepKey is another household brand in the world of cryptocurrency storage. It is a secure wallet on the new ShapeShift Platform that supports a variety of popular currencies.

This hierarchical deterministic (HD) wallet saves bitcoin, Bitcoin Cash, Ethereum, and Litecoin and supports over 40 other crypto assets.

 

5. Hiro Wallet: The Hiro Wallet enables you to manage your STX tokens on the Stacks blockchain by associating them with a single officially known Stacks crypto address and a single privately held “Secret Key” (mnemonic phrase) that acts as your unique credential.

 

Where can you buy Stacks?

Stacks can be bought, sold, and exchanged over the following crypto exchange trading platforms.

  1. Kucoin
  2. Binance
  3. Crypto.com
  4. Gate.io
  5. BitYard

 

1. Kucoin: KuCoin is a fantastic cryptocurrency exchange for those who are interested in cryptocurrency investing. KuCoin is known for its high 24-hour trading volume, passion for Bitcoin and a wide range of other digital assets, transparent asset prices, and a series of solutions for institutional investors and retail traders.

 

PROS CONS
KuCoin is renowned for its innovative trading software The platform does not offer service to United States clients
Traders have access to powerful trading platforms which are feature-rich Unregulated
There is 24/7 customer support offered  
Traders have access to several digital assets that can be traded  

 

2. Binance: In terms of cryptocurrency exchanges, Binance is the largest cryptocurrency exchange and most well-known. There are several advantages to acquiring Stacks (STX) online, including cheaper exchange costs and improved liquidity, which allows you to take advantage of market-moving news.

 

PROS CONS
Traders can choose from a wide range of crypto assets to trade Unregulated
The exchange features powerful trading platforms There is no telephonic support offered
Traders have the option to purchase crypto using their credit card There is a lack of daily market analysis
There is a comprehensive training academy that can be used by novice traders The platform does not accept United States clients

 

3. Crypto.com: Crypto.com is a crypto exchange trading platform that provides services like trading, investment, staking, wallets, and non-fungible tokens.

This exchange supports over 150 different currencies, charges a fair price, and gives discounts to those who own a considerable amount of Crypto.com Coin (CRO).

Its ecosystem of cryptocurrency-related items may make it an attractive option for people wishing to make significant use of their coins.

 

PROS CONS
The exchange offers an innovative proprietary trading platform Unregulated
There are over 100 crypto assets offered Standalone trading tools are not offered
24/7 customer support provided
Educational materials are offered

 

4. Gate.io: Gate.io, founded in 2013, is a respected trading platform featuring an easy-to-use interface for novices and sophisticated charts for technical traders.

With Stacks (STX) being one of their many cryptocurrencies, they are the first to launch new tokens. Best of all, they are strongly opposed to market manipulation.

 

PROS CONS
There is a wide range of digital assets to choose from The functionality can be confusing for new traders
The platform supports a range of trading styles The customer support system is extremely busy
The exchange is known for its enhanced and industry-leading security features  

 

5. BitYard: Over 100 cryptocurrencies, including Stacks and BitYard, may be traded on the BitYard cryptocurrency exchange, which was founded in 2019. (STX).

More than 150 nations are represented by the Singapore-based exchange, which provides services to dealers in more than 150 countries.

 

PROS CONS
BitYard's interface is user-friendly  A limited selection of crypto assets that can be traded
The exchange provides a reliable trading engine  Withdrawals cannot be done using fiat currencies
Traders can choose between several major digital currencies for deposits  
There is a KYC procedure that must be completed for deposits  

You can buy Stacks safely from these cryptocurrency platforms.

What is Stacks’ largest Competitor?

Ethereum is the largest competitor of Stacks.

Ethereum is a distributed ledger technology (DLT), while Blockstack is a “layer 2” system. If you want to make modifications to Ethereum, users must first get buy-in from miners and other interested parties.

If users want to modify Blockstack independently of the blockchain, users can do so freely. Blockstack does all processing and storage in the cloud, relying on the blockchain exclusively as a “shared source of truth” amongst clients.

By comparison, Ethereum does all processing and storage for most applications inside the blockchain itself.

As with Ethereum, if two Blockstack nodes view the same underlying blockchain, they will conduct the same calculations and output the identical state independently. Unlike Ethereum, there is no blockchain dedicated to Blockstack.

The programming paradigm of Blockstack is built on the execution of off-chain applications. These applications may be developed in any language and debugged in any language.

By contrast, Ethereum's programming approach is built on the execution of “smart contracts” on the blockchain. These are developed and debugged using a novel collection of tools, including Solidity and Serpent.

Nowadays, blockchain apps are quite comparable to Web applications and never need interaction with the blockchain. The blockchain is often used to authenticate the application's code and data before the user can utilize it.

By contrast, Ethereum apps often need a custom smart contract and must communicate with the blockchain to operate.

 

What is the Mining and Staking Process involved with Stacks?

PoX is a fork of the Proof-of-burn concept, in which miners compete by ‘burning' (destroying) a proof-of-work coin from an existing blockchain to get computer resources.

Unlike proof-of-burn, however, instead of burning the cryptocurrency, miners transmit it to other network members who are ‘Stacking'.

The Bitcoin transmitted by miners is then used to give Stacking rewards, which are paid in Bitcoin to token holders in exchange for assisting in ensuring the stability of the Stacks network.

Stacker does this by temporarily locking their tokens and announcing the authorized chain tip. Mining and Stacking operate in tandem to safeguard the Stacks network and deliver a slew of advantages to Stacks builders.

 

What can Stacks smart contracts do?

Smart contracts and decentralized apps are supported by the Stacks Blockchain. It also facilitates the production of adaptable virtual assets that can be readily transferred.

To protect these actions, the network employs the Clarity programming language to offer support for these smart contracts.

Stacks' proprietary Clarity programming language is predictable, and it does not need the usage of a compiler. Stacks have used this programming language to assist them in bringing smart contracts to Bitcoin.

To be more specific, the programming language employs predictable source code for executing smart contracts and publishing them on blockchain nodes.

As a result, the system employs this capability to aid with the security of the Stack ecosystem through the definable programming language.

 

Is Stacks a Good Investment?

Yes, Stacks is a good investment.

Stacks has already addressed some of Bitcoin's shortcomings, making it more desirable. STX's network is tied to Bitcoin's technology, assuring the security of the platforms it incorporates.

Due to STX, developers may use Bitcoin technology to create decentralized apps (DApps) like exchanges, games, and even Non-Fungible Tokens (NFT).

Since Bitcoin's size and market cap continue to expand, the value of STX continues to rise, as it is Bitcoin's primary backer now. STX, the native token for the Stacks ecosystem, recently increased in value when a 12-year-old sold a Bitcoin bird NFT for about $8,000 within hours after it was created.

Stacks is now in direct competition with market behemoths like Ethereum, which currently dominates the NFT business. STX's recent success in the industry, on the other hand, is encouraging investors.

 

What is the supply and distribution of Stacks?

By 2050, over 1.82 billion STX are predicted to be in circulation, compared to around 739.7 million as of January 2022.

According to the Stacks 2.0 whitepaper draft (v0.1), 1,000 STX per block will be issued in the first four years, then 500 STX/block in the following four years, 250 STX/block in the next four years, and 125 STX/block in perpetuity.

The creator received 6.6% of the original genesis supply (1.32 billion STX), while the Stacks team received 7.9%. These are subject to a three-year unlock timeline, with tokens that became available in November 2022.

 

Is Stacks a viable Alternative Coin?

Yes, Stacks is a good alternative coin according to these factors:

  • Security – Stacks shares the benefit of Bitcoin's robust security.
  • Transaction speed – Stacks can process large amounts of transactions per second.
  • Technology – Stacks uses some of the most innovative technology, including PoX, Microblocks, Clarity Programme, and more.
  • Potential Investment – Because of its association with Bitcoin, Stacks serves as a great potential investment
  • Future Uses – Stacks has several use cases because of its unique nature and innovative technology.

Any cryptocurrency that isn't Bitcoin is referred to as an altcoin.

What are the differences between Stacks and Bitcoin?

Stacks and Bitcoin are two linked blockchain networks that operate in conjunction with one another.

It is fascinating that both blockchain networks are independent of one another. They are self-contained networks that are linked using the Proof-of-Transfer consensus process.

Miners may use this technique to send new coins as well as Bitcoin smart contracts to other Stack network members.

 

  Bitcoin Stacks
Price change 20/21 +400% +350%
Market Cap $800 Billion+ $2.9 Billion+
Past Hacks None None
Popularity Very High Low
Altcoin Rank #1 – Original Crypto #54

 

What are the differences between Stacks and Ethereum?

Ethereum is a DLT, whereas Blockstack is a “layer 2” system. To change Ethereum, users must first get the support of miners and other interested parties.

Users may freely change Blockstack without affecting the blockchain. A “shared source of truth” for customers, Blockchain handles all processing and storage in the cloud.

Unlike Bitcoin, Ethereum accomplishes all processing and storage inside the blockchain itself. Like Ethereum, two Blockstack nodes seeing the same underlying blockchain will produce the same state independently. Unlike Ethereum, Blockstack has no specialized blockchain.

Blockstack's programming model is based on off-chain applications, which means that these apps may be written and debugged into any language. Unlike Bitcoin, Ethereum relies on the blockchain to execute “smart contracts.” Solidity and Serpent are used to create and debug these.

Nowadays, blockchain apps are almost identical to web apps and seldom interact with the blockchain. The blockchain is often used to validate an app's code and data before the user accesses it. However, Ethereum applications often need a specific smart contract and must interface with the blockchain.

 

  Ethereum Stacks
Price change 20/21 +880% +350%
Market Cap $460 Billion+ $2.9 Billion+
Past Hacks None None
Popularity Very High Low
Altcoin Rank #2 #54

 

What are the differences between Stacks and Dogecoin?

Dogecoin is mostly used to tip individuals on Reddit and Twitter. However, it is accepted at a few dozen locations. It can be used to buy food, household essentials, and even website domain registrations.

Stacks integrates with Bitcoin, allowing you to create applications, smart contracts, and digital assets that are secure, capital-efficient, and network-connected.

 

  Dogecoin Stacks
Price change 20/21 +7,300% +350%
Market Cap $22 Billion+ $2.9 Billion+
Past Hacks None None
Popularity High Low
Altcoin Rank #12 #54

 

What are the differences between Stacks and NEO?

A decentralized system allows Neo to digitize assets using blockchain technology and digital ownership, self-manage digital assets using smart contracts, and create a “smart economy” via the use of smart contracts.

Users of the Neo blockchain can register, trade, and exchange a wide range of different assets. Stacks is a project that is creating a user-owned internet that is safeguarded by Bitcoin.

Both projects have different objectives, and Stacks is more popular and larger than NEO according to its market capitalization and its position on the altcoin list.

 

  NEO Stacks
Price change 20/21 +160% +350%
Market Cap $1.70 Billion+ $2.9 Billion+
Past Hacks None None
Popularity Medium Low
Altcoin Rank #69 #54

 

What are the differences between Stacks and NFTs?

Nonfungible tokens (NFTs) are digital assets that each have a unique value, with no two NFTs holding the same characteristics or value as another. Stacks, on the other hand, is fungible, which means that one STX has the same value and characteristics as another STX.

 

What are the differences between Stacks and Solana?

Stacks utility is typically inferior to that of Solana and is anticipated to remain so for the near future. This may explain why, while being older than Solana, it is less popular with users.

STX coins are as costly to transmit as SOL coins. Stacks transaction speed is also around two thousand times slower to confirm, compared to Solana's 50,000 TPS.

 

  Solana Stacks
Price change 20/21 +9,300% +350%
Market Cap $54 Billion+ $2.9 Billion+
Past Hacks None None
Popularity Very High Low
Altcoin Rank #5 #54

 

What are the differences between Stacks and Cardano?

One significant distinction is that Stacks makes advantage of the Bitcoin network's security. Cardano is a Proof-of-Stake cryptocurrency.

While it may seem that Stacks is like Bitcoin because users can stack their STX to assist in maintaining the integrity of stacks, it is all about syncing the stacks blockchain with Bitcoin's.

Additionally, Cardano is one of the most environmentally friendly cryptocurrencies in comparison to others.

 

  Cardano Stacks
Price change 20/21 +2,100% +350%
Market Cap $42 Billion+ $2.9 Billion+
Past Hacks None None
Popularity Very High Low
Altcoin Rank #7 #54

 

What is Proof-of-Transfer?

Proof-of-transfer (PoX) is a proof-of-burn method that is extended and adapted. PoX secures a new blockchain by using the proof-of-work coin of an old blockchain.

Unlike proof-of-burn, however, miners transmit the pledged Bitcoin to other network members rather than burning it. This enables network users to protect the PoX cryptocurrency network while also earning a reward in the base currency.

Thus, proof-of-transfer blockchains are tethered to the proof-of-work chain on which they are based. Stacks' anchor chain is Bitcoin.

 

Is Stacks as secure as Bitcoin?

Yes, Stacks is extremely secure.

Given Stacks contracts' visibility into the Bitcoin state and their intrinsic ability to exploit Bitcoin's security and settlement guarantees, Stacks is ideally positioned to allow real Bitcoin DeFi.

Due to the Proof of Transfer consensus mechanism that binds the Stacks chain to Bitcoin, all Stacks transactions settle on Bitcoin.

This assures that Stacks benefits from Bitcoin's unmatched long-term security for transaction reorganizations.

 

Do all Stacks’ transactions be settled on the Bitcoin blockchain?

Yes, the Bitcoin network provides finality and security for the Stack Blockchain's smart contracts. Meanwhile, the platform's Proof of Transfer method allows it.

The link between the stack blockchain and Bitcoin allows for both transaction execution and verification.