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What is Stacks (STX)?
Stacks (STX), a layer 1 blockchain project, intends to address Bitcoin’s scalability issues. Bitcoin (BTC), the first and most renowned of all cryptocurrencies, has grabbed the attention of users because of its unique qualities. The coin stood out because of its effectiveness in terms of economic abilities.
However, the network still has some flaws that numerous blockchain projects have proposed to address. The Bitcoin network has scalability concerns, which is one of its most significant drawbacks.
These main flaws have caused worries among blockchain applications, prompting innovations to address them.
Stacks(STX), is a network platform that makes it easier to employ smart contracts and decentralised apps. The blockchain platform is powered by Bitcoin since it relies on it for security and transaction execution.
To put it another way, the Bitcoin network serves as the finality and security layer for the Stack Blockchain’s smart contracts. Meanwhile, it is achievable thanks to the platform’s Proof of Transfer method.
The connection between the stack blockchain and Bitcoin allows transactions to be executed on the stack network while still being verified on the Bitcoin blockchain.
Who are the founders of Stacks (STX)?
M.Ali and R.Shea are the co-founders of Stacks who happen to be alumni of Princeton University. The motive behind Stacks was to decentralize the internet for all users alike.
What makes Stacks (STX) unique?
Simply put, Stacks is all about its innovation. Beginning with how it was created. The project was in its development for a good 8 years which is more than any other crypto’s development period before they went live.
Of which the majority of the time was spent by the developer’s team for a rigorous review process in which experts from renowned universities pulled apart their concept to find any flaws.
Stacks examines the functionalities that make BTC function, to amplify its capability more than what it used to be previously considered possible without having to reconstruct the whole blockchain in its entirety.
To do so, it connects directly to the Bitcoin blockchain via its revolutionary consensus method. To do this, it brought forward a new coding language of smart contracts called Clarity, which is not only easily understood but also preserves the security of the blockchain.
Stacks requires a distinct data backing solution due to its lightweight architecture, which it accomplishes by delegating the task to Gaia, which is Stacks’ own storage system. The feature of Gaia that distinguishes it from comparable systems is that it allows users who are wary about online storage to keep their data locally.
The Blockstack Naming Service is an integrated naming service that allows users to give assets names. Through merging public and private keys the assets are secured.
Furthermore, Stacks also acquired official support in the United States and received cumbersome funding meant for development finance and, perhaps more critically, SEC approval for Stacks’ ICO, making it the first-ever blockchain token to do so.
How Many STX (STX) Coins?
Stacks has a circulating supply of 1.1 Billion STX coins with the total supply being 1.82 Billion STX coins.
How does Stacks (STX) Work?
Stacking is a novel technique that pays STX token holders for participating in the Proof of Transfer consensus process on the Stacks blockchain.
The role of miners and Packers is crucial to the functioning of blockchain. Proof of Transfer is a unique consensus mechanism that governs their interaction.
Stackers are STX holders who participate in Stacking. Miners in the Stacks blockchain don’t mine anything, which may come as a surprise. Rather, they exchange the mined BTC to gain STX coins by committing it.
The protocol delivers BTC committed by miners to Stackers as a reward for contributing value to the network every time a new block is mined on the Stacks blockchain. Approximately once per Stacking cycle, all eligible Stackers are paid with BTC.
The Stacks Earning Model can be used to calculate the amount of BTC that can be earned by stacking.
The important thing to remember is that every Stacks blockchain’s block saves the identity details of the user which is then used to communicate with all of the Stacks ecosystem’s applications.
Any changes to the balances in the wallets and IDs can be validated using the BTC blockchain because it is linked to it. The same thing goes with the Stacks smart contracts, which are written in Algorand’s unique coding language, which was developed and tested specifically for Stacks.
The rest of the data that isn’t backed on the blockchain is kept in Gaia which is Stacks’ custom storage system This innovative storage system makes use of cloud storage providers such as Azure and Dropbox, but it also gives consumers the option of using their cold storage solution if they have the necessary computational power.
STX is the native coin of the Stacks’ ecosystem’s and it underlies everything and facilitates users in registering their assets digitally on the blockchain along with their Stacks IDs and smart contracts.
Conclusion
Even if you’ve merely glanced at it or examined it in depth, there isn’t a single component of Stacks that makes you feel like the developers lacked desire. The project’s initial objective is to redefine the use case for the world’s largest and most powerful blockchain, Bitcoin.
They’ve also been tremendously brave and ambitious in how they’ve gone about accomplishing this vision. It’s no surprise that theirs was the first SEC-approved ICO in the United States.
It remains to be seen if their goal will be realised and whether they will be able to aim for the stars.
With its unique characteristics, Stacks (STX) is a significant contribution to the blockchain sector. It is true to argue that Stacks’ services will increase the adoption and use of Bitcoin in the crypto business since it allows consumers to profit from the benefits of combining smart contracts with Bitcoin’s capabilities.
The Stack blockchain’s excellent functionality allows for the network’s prosperous future in the sector to be predicted.
The ability for users to earn BTC just by engaging in the network is also a draw to the network.
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