Stacks is a Layer-1 blockchain with Bitcoin as a base layer linked together with a Proof of Transfer (PoX) consensus mechanism. The decentralized, trustless, permissionless, open network supports smart contracts, allowing developers to launch decentralized applications (dApps) that enjoy Bitcoin’s superior security and state.
Stacks advances the core functionality and features of the Bitcoin blockchain, using it as a base layer and adding more advanced capabilities. The Stacks blockchain supports smart contracts and complex decentralized apps that interact with Bitcoin’s state and use BTC as their native currency.
What Stacks’ revolutionary technology does is offer a multitude of new use cases and applications for Bitcoin’s technology. As the world’s most popular cryptocurrency, its features are sought after by investors, developers, and consumers worldwide for enhanced security, transparency, decentralized nature, and highly resilient infrastructure.
STX is the native token of the Stacks blockchain and can be minted by paying in BTC. Stacks also lets STX holders stack their tokens to earn Bitcoins as rewards as part of its PoX consensus mechanism.
The Stacks blockchain leverages Clarity as a programming language for smart contracts on its network. Unlike most other popular smart contract programming languages that are compiled, smart contracts developed using Clarity are interpreted, making them easier to understand and far more secure.
The Stacks’ consensus mechanism Proof of Transfer (PoX) is an extension of the Proof of Burn consensus algorithm. It uses the PoW cryptocurrency of the base layer - in this case, Bitcoin, to secure its blockchain (Stacks). However, instead of burning the native token as Proof of Burn blockchains do, miners transfer the committed crypto assets to other participants in the network as part of the consensus process.
Stacks also leverages a Bitcoin-pegged asset, sBTC, that is fully programmable and far more versatile than the original BTC coin. sBTC is trustless, decentralized, and has the potential to accelerate Bitcoin’s adoption by powering Web3, DeFi, and several other applications, all using Bitcoin and BTC.
The technology behind Stacks makes it possible to implement non-fungible tokens (NFTs) powered by Bitcoin. NFTs can be created on Stacks and use Bitcoin for settlement and security.
Similarly, Stacks can power the Bitcoin DeFi movement, unlocking the potential of decentralized finance using the world’s most popular cryptocurrency. Stacks can also offer Blockchain Naming System (BNS) - a decentralized network system that binds Stacks usernames to off-chain use cases.
Stacks was initially founded as Blockstack by Ivy League graduates Muneeb Ali and Ryan Shea in 2013 at the Princeton Computer Science department. Blockstack participated in the Y Combinator accelerator in the summer of 2014, raising seed funding from Union Square Ventures (USV), Naval Ravikant, SV Angel, and more participants.
The company launched a blockchain-based decentralized identity (DID) solution in 2014 and unveiled the initial design for the Blockstack platform in the following year. The Blockstack developer platform’s alpha version was released after significant R&D in 2017.
The Stacks v1 mainnet went live in October 2018 when the genesis block was mined. In Q4 2018, Stacks unlocked around $25 million in funding from their token offering held in December 2017.
In Q2 2019, Stacks announced a filing with the SEC for a $50 million regulated token offering using the SEC Regulation A+ Framework. The Blockstack whitepaper was upgraded to version 2.0 laying out the design of the Stacks blockchain, PoX consensus, and the smart contract programming language Clarity in the same quarter.
The Stacks 2.0 upgrade went live via testnet in Q2 2020, followed by adoption among miners in Q4 2021 and release in Q2 2022. This network upgrade helped increase the network capacity, allowing greater adoption and innovation in Bitcoin DeFi and NFT areas.
Stacks could be a good investment, especially if you believe in the potential of Bitcoin and blockchain technology for mainstream adoption. The Layer-1 blockchain adds extra capabilities to power Bitcoin’s technology into new sectors within the crypto industry, such as Web3, DeFi, NFTs, and more.
A positive market outlook towards cryptocurrencies and the abovementioned sectors could help the STX price register gains. Additionally, a risk-on sentiment in the global financial markets also increases the appeal of digital assets like STX, helping the value of Stacks climb higher.
The Stacks price could also rise as developers innovate and add new features or roll out new applications for its technology. Such developments could spur on-chain activity and make STX crypto more valuable.
While it is impossible to offer an accurate Stacks token price prediction, several fundamentals play a significant role in driving price action and volatility in the STX coin. These include:
An uptick in development activity on the Stacks blockchain, leading to the rollout of new dApps, helps the price of STX. As more projects launch on the platform and leverage Stacks’ infrastructure, the higher on-chain activity could drive up the demand for the STX crypto among users and investors.
Whenever developers announce new upgrades that equip Stacks with more features and make it more efficient, investor confidence in its native token enjoys a boost. This, along with announcements about new investments and partnerships, can also raise the STX price in the market.
Market sentiment plays a significant role in driving price fluctuations in almost all cryptocurrencies, including STX. The Stacks price could head higher when the market mood is bullish. On the other hand, bearish or risk-averse sentiment among investors could weaken the price of STX token.
$STX is the native crypto asset of the Stacks blockchain and has the following applications:
$STX incentivizes using the Stacks ecosystem, letting users who help build and maintain the Stacks network earn rewards.
STX is also used to pay transaction fees when using the Stacks network. Users and developers pay using the $STX token when executing smart contracts, performing computational operations, and interacting with dApps.
Stacks also lets STX holders earn Bitcoin by stacking their STX tokens on the network. Stacking is part of the PoX consensus mechanism, where users must lock their tokens while providing valuable services to the blockchain.
Trade Stacks cryptocurrency against other digital assets and profits from changing market conditions and volatility. Buy or sell STX against other cryptocurrencies or hold it long-term if you believe in the future potential of the Stacks blockchain. Check the live price of Stacks token, STX market cap, circulating supply, 24-hour trading volume, and the latest crypto news before trading STX in the market.
Grow your STX holdings in a safe and risk-free way with KuCoin Crypto Lending. Head to this section and lend liquidity in STX to our platform. Earn attractive daily interest over seven days, 14 days, or 28 days.
As of February 2023, the circulating supply of STX tokens stands at a little over 1.36 billion. This is around 75% of the token’s max supply, just over 1.81 billion. The circulating supply changes based on the mining frequency as more Stacks blocks are mined, and rewards get distributed.
You can temporarily lock your STX holdings and contribute to improving the Stacks network’s security, earning BTC in the process. This process is known as stacking.
Here’s how you can stack STX on the Stacks blockchain using Hiro Wallet to earn Bitcoin:
1. Download and install the Hiro Wallet browser extension or desktop app on your web browser or computer, respectively.
2. Set up an account on the wallet and fund it with sufficient tokens by buying STX on KuCoin or other supported exchanges and withdrawing the funds to your Hiro Wallet account.
3. Click on Get Started to head to the “Start earning Bitcoin” section of the wallet.
4. Enter the number of $STX tokens you wish to stack and click on Continue.
5. Check when the next stacking cycle will begin and select the number of cycles you wish to stack your tokens for. Each cycle lasts seven days.
6. Enter your Bitcoin address where you wish to earn your stacking rewards and click Continue.
7. Confirm the transaction with your wallet, sit back, earn BTC rewards, and grow your crypto portfolio by stacking STX.