It is no longer a secret that Bitcoin has a high level of security. Unfortunately, Bitcoin has limitations that impact global adoption, such as the lack of smart contracts for DeFi applications. Stacks (STX) is a crypto project that exists as a solution to this problem.
Currently, Stacks (STX) is ranked 54th at the global level according to Coinmarketcap.com with market capitalization reaching IDR 20.64 trillion and daily transaction volume reaching IDR 2.3 trillion on Tuesday (12/12). Find more detailed information about what Stacks is and how it works and its ecosystem in the following review.
What is Stacks (STX)?
Stacks (STX) is a crypto project that provides a unique blockchain ecosystem and decentralized development platform. This project is designed as a layer-1 solution that uses Bitcoin as its base layer. Since Stacks operates as a layer-1 ecosystem tied to Bitcoin, the introduction of smart contracts does not change Bitcoin's inherent features, while maintaining its popularity due to security and stability.
Stacks' decentralized applications (dApps) are designed to be open and modular, allowing developers to build on top of each other's applications and innovate features that were previously difficult to achieve.
Stacks' foundation stems from the belief that the internet is not yet the fully decentralized exchange channel it should be, and that big players like Google and Facebook have too much influence over ordinary users.
Token Stacks (STX) is the main pillar in running smart contracts, processing transactions, and registering new digital assets.
How Stacks Work
Stacks is built on Bitcoin blockchain technology and uses Bitcoin as the basis for completing transactions. The Stacks network is connected to Bitcoin via a Proof-of-Transfer mechanism, which runs concurrently with Bitcoin's Proof-of-Work (PoW) consensus. Proof-of-Transfer (PoX) is actually a modification of Proof-of-Burn (PoB), which is similar to PoW.
In PoB, users have to burn a certain amount of BTC to mine new blocks on the Stacks network. The burned BTC is then reused by leveraging the work already done in Bitcoin's PoW consensus. However, in PoX, miners do not do this, but instead send BTC to STX token holders who have locked their tokens.
The ability to create blocks in the Stacks blockchain is determined through a process called sortition , where miners compete to be selected to create the next block by sending Bitcoins to randomly assigned addresses. This process ensures that block generation occurs in a fair and decentralized manner.
To create a new block in the Stacks blockchain, miners confirm the block hash of each Stacks block to the Bitcoin chain using the OP_RETURN feature in Bitcoin transactions.
In this way, the state or condition of the Stacks blockchain can be recognized by the Bitcoin chain and benefit from the immutability of data in Bitcoin. Stacks nodes can leverage data stored on the Bitcoin chain to ensure that the state of the Stacks blockchain remains intact. Additional information from newly mined Stacks blocks is linked to each Bitcoin block, allowing users to check the correctness of the Stacks chain through Bitcoin blocks.
Moreover, because only the hash of a Stacks block is recorded on the Bitcoin chain, the blocks can include thousands of transactions without having to add space to the Bitcoin block.
Who is the Founder of Stacks
The founders of Stacks are Muneeb Ali and Ryan Shea. Initially this project was named Blockstack in 2013 and then changed its name to Stacks in 2020.
Muneeb Ali and Ryan Shea developed Blockstack technology for years at Princeton University's Department of Computer Science.
Tokenomics
STX is a token that makes all activities on the Stacks blockchain easier. STX is used to pay transaction fees and can be locked directly on the network to earn BTC rewards and help secure the network by indicating consensus. This process is called stacking (not staking )
STX has a fixed future supply. Just like Bitcoin, the supply of STX will continue to decrease every 4 years. By 2050, it is predicted that there will only be 1.82 billion STX in circulation.
Currently (12 February 2023), the number of STX tokens circulating on the market is more than 1.4 billion STX or 75% of the total supply of 1,818 billion STX.
Conclusion
Stacks (STX) is a crypto project that stands out for its unique approach to integrating the highly secure and decentralized blockchain ecosystem that Bitcoin has. Built on the Bitcoin blockchain, Stacks provides a decentralized development platform that allows developers to create applications and smart contracts by leveraging the benefits of the Bitcoin ecosystem.
For fans of decentralized ecosystems, Stacks is an interesting option to explore and understand further.
How to Buy STX Tokens on Bittime
After reading a complete review of what Stacks is, are you interested in buying and investing in this crypto project? You can buy STX tokens on the best crypto exchange platforms in Indonesia, one of which is Bittime. STX is available on Bittime in STX IDR pairing .
To be able to buy STX tokens on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance to buy STX tokens. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, then you can purchase STX in the application.
Also Read: More Complete Guide on How to Buy STX on Bittime
Monitor today's price chart movements for Stacks (STX), Bitcoin, Ethereum, Solana and other cryptos to find out today's crypto market trends in real-time on Bittime.
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