{"id":168173,"date":"2024-06-29T13:00:00","date_gmt":"2024-06-29T13:00:00","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=168173"},"modified":"2024-06-28T17:18:34","modified_gmt":"2024-06-28T17:18:34","slug":"stacks","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/stacks\/","title":{"rendered":"Stacks (STX) Review: Powering Bitcoin with Smart Contracts and dApps without Altering its Nature"},"content":{"rendered":"
Have you heard about Stacks? In this review we will tell you everything you need to know about this is where Stacks comes in, a revolutionary project<\/a> that promises to take the capabilities of the Bitcoin blockchain<\/a> to the next level<\/strong>.<\/p>\n <\/p>\n When blockchain technology<\/a> was just a short time old and its use was beginning to become increasingly popular, a clear problem arose for many of them: scalability. The large number of users added to the network generated congestion problems and, consequently, gas rate increases<\/strong>.<\/p>\n For this reason, Layer 2 solutions appeared, which ran in parallel to the main blockchain, improving its functionalities<\/strong>. The first to receive these Layer 2 projects, was Ethereum<\/a> but, recently, and with the increase of Bitcoin blockchain use cases, it became necessary the appearance of this type of networks also in it.<\/p>\n Stacks (STX) (formerly known as Blockstack) is a unique blockchain protocol that enhances Bitcoin’s capabilities without changing its fundamental features<\/strong>. It operates as a layer 2 solution, meaning it runs on top of the main Bitcoin blockchain, allowing you to introduce smart contracts<\/a> and decentralized applications (dApps) into the ecosystem.<\/p>\n One of Stacks’ key features is its use of the Proof-of-Transfer<\/a> (PoX) consensus mechanism<\/strong>. This mechanism leverages the security and stability of Bitcoin while enabling faster and cheaper transactions on the Stacks network. This approach ensures that Stacks can provide new functionality, such as smart contracts and dApps, without compromising the security of the underlying Bitcoin network.<\/p>\n Stacks is also introducing a new programming language called Clarity<\/a><\/strong>, which is designed specifically for smart contract development. Clarity is secure, predictable and easy to use, making it ideal for developers who want to build on the Stacks network. In addition, Stacks’ native cryptocurrency, STX, is used for network fees, governance and digital asset registration.<\/p>\n Stacks offers a unique solution to enhance Bitcoin’s capabilities<\/strong>, giving developers the tools they need to create innovative decentralized applications while maintaining the security and stability of the Bitcoin network.<\/p>\n Proof-of-Transfer (PoX) is an innovative process for confirming blocks on the Stacks blockchain.<\/p>\n It is a variant of Proof-of-Burn (PoB), which gives miners the right to mine blocks by “burning” a portion of their tokens<\/strong> (either a native asset or another cryptocurrency<\/a>). By burning, miners can mine more blocks, earning rewards in BTC for helping to secure the network.<\/p>\n Proof-of-Transfer, meanwhile, requires miners to send BTC (on the Bitcoin network) to other Stacks network participants, rather than to a burn address<\/strong>. Since Stacks can read the state of the Bitcoin network, it can verify the occurrence of these transactions. The Stacks protocol then randomly selects a winning miner for that block and rewards it with Stacks’ native token, STX.<\/p>\n Stacks interacts with Bitcoin without modifying its base layer protocol at all.<\/strong> Bitcoin ultimately serves as the final settlement layer for Stacks, as transactions are batched and then sent to be verified and validated in Bitcoin. Subsequently, the history of each Stacks block is recorded forever on the Bitcoin blockchain.<\/p>\n This mechanism makes Stacks unlike any other layer solution.<\/p>\n Proof-of-Transfer is also a remarkably sustainable solution for Bitcoin’s programmability and scalability<\/strong>. Instead of using more energy, Stacks miners recycle Bitcoin’s Proof-of-Work (PoW) when transacting with Bitcoin, and in turn produce new Stacks blocks.<\/p>\nWhat is Stacks?<\/h2>\n
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What Is Proof-Of-Transfer (POX)?<\/h2>\n
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What Is The STX Token For?<\/h2>\n
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