Bitcoin, the world's most popular cryptocurrency, only needs to rise about 25% more to reach its highest record ever recorded in November 2021. However, there is another cryptocurrency that may reach its peak faster, namely Stacks (STX).
Stacks is a cryptocurrency that is closely related to Bitcoin, but has more advanced and flexible features. Stacks is its own blockchain, but also functions as a layer-2 for Bitcoin that supports DeFi (decentralized finance) features commonly found in other blockchains such as Ethereum and Solana.
Stacks users can create custom cryptocurrencies similar to ERC-20 tokens on Ethereum, as well as stablecoins, wrapped bitcoin, and NFTs (non-fungible tokens). Stacks also supports decentralized exchanges and liquid staking protocols.
Stacks experienced an extraordinary price increase, namely around 400% since October 2021. Bitcoin itself only rose around 100% in the same period. Currently, the STX price is just less than 17% from its record high, which was reached around the time Bitcoin hit $69,000.
Of the 300 cryptocurrencies that hit record highs during the 2021-2022 bull market, STX was the closest to the record. Bitcoin (BTC) is in second place, followed by Sky Mavis' ronin (RON), which is still 32% below record, and ether (ETH), which is still down more than 41% from record.
How Stacks Works with Bitcoin?
Stacks has a special connection with Bitcoin which makes it more secure and stable. Stacks leverages Bitcoin as the settlement and data availability layer for the Stacks ledger.
Transactions in Stacks are first processed by their own validators, also called miners, who then periodically write block header data to the Bitcoin blockchain via the OP_RETURN field. This means, Bitcoin is a witness to the history of transactions that occur on Stacks.
Technically, Bitcoin miners, at the same time as adding blocks to the Bitcoin blockchain, also cryptographically verify the history of transactions that occurred in Stacks. This makes it difficult for bad actors to change the transaction history on Stacks afterwards, as that would mean having to change the Bitcoin ledger itself through unlikely collusion or a very expensive 51% attack.
STX, meanwhile, is used to pay gas fees equivalent to Ethereum on Stacks.
What Makes Stacks Interesting?
Stacks has an interesting vision, namely allowing Bitcoin users to utilize their capital, not just store it. With Stacks, anyone with a lot of BTC can use it to get other cryptos.
They can lend it out to earn interest, provide liquidity on trading platforms to earn returns, or even use it directly to invest in NFTs or token sales.
Stacks also offers the possibility to earn Bitcoin returns by staking STX as part of the consensus process. Staking STX allows users to select miners who will process transactions on Stacks, and in return, they will earn a share of transaction fees paid in BTC.
Stacks is also preparing a major update under the name "Nakamoto Release", which will improve network scalability, security and interoperability. This update will introduce new features such as proto-danksharding and data blobs, which can reduce transaction costs for layer-2.
Can Stacks Compete with Bitcoin?
Stacks is not a direct competitor to Bitcoin, but rather a complement. Stacks does not intend to replace Bitcoin as the primary cryptocurrency, but rather expand Bitcoin's capabilities and functions by adding DeFi features that many crypto users need.
Stacks also does not sacrifice the security or decentralization of Bitcoin, but rather leverages it as a strong and trusted base layer. Stacks also does not create new inflation for Bitcoin, but rather uses mechanisms that already exist in the Bitcoin protocol to integrate the Stacks ledger.
Stacks is an example of how innovation and creativity can take Bitcoin to a higher level, without changing the essence and value of Bitcoin itself. Stacks is proof that Bitcoin is not just digital gold, but also a platform for building a richer and more rewarding crypto ecosystem.
How to Buy STX Tokens on Bittime
You can buy and sell STX tokens in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappbeti. STX is available on Bittime with pairing STX IDR.
To be able to buy STX/IDR tokens on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of Bittime assets is IDR 10,000. After that, then you can purchase STX in the application. More Complete Guide How to Buy STX on Bittime
Monitor the price chart movements of Stacks (STX), Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Read also:
What is Stacks (STX)? Layer 2 Blockchain for Bitcoin Smart Contracts
Buy Bitcoin vs Spot Bitcoin ETF, Which is More Profitable?
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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