Stacks (STX)

Stacks is a blockchain that brings smart contracts, non-fungible tokens (NFT), and decentralized applications (DApps) to Bitcoin.

Stacks is a blockchain that brings smart contracts, non-fungible tokens (NFT), and decentralized applications (DApps) to Bitcoin.

Since Stacks uses Bitcoin as a base layer, everything that happens on Stacks is settled on the Bitcoin Blockchain. Stacks connects directly to the Bitcoin blockchain through its proof-of-transfer (PoX) consensus mechanism. To understand the proof-of-transfer (PoX) consensus mechanism used by Stacks, let's do a quick recap of some of the basic mechanisms.

Proof-of-work, used by Bitcoin, requires miners to dedicate computing resources. In proof-of-stake blockchains, validators dedicate financial resources to secure the network. Proof-of-burn is a consensus mechanism in which miners compete by "burning" or "destroying" a proof-of-work crypto as a proxy for computing resources.

Proof-of-transfer (PoX) is an extension of proof-of-burn. PoX uses the proof-of-work crypto of a credible blockchain to secure a new blockchain. But instead of "burning the crypto", miners transfer the committed crypto to some other participants in the network.

Stacks also operates the .BTC top-level domain. You can get a domain name at a cost of $5 USD for 5 years. To register a .BTC name, you need to send a transaction to the Blockchain Name System (BNS) smart contract on the Stacks blockchain. This transaction gets finalized on Bitcoin. This makes .BTC names censor-proof.

The Stacks token (STX) fuels the:

  • execution of smart contracts,
  • processing of transactions, and
  • registration of new digital assets.

Stacking rewards Stacks (STX) token holders with bitcoin for temporarily locking up their tokens.

Popular Stacks wallets include Hiro Wallet, Xcerse, D'Cent, Boom Wallet, Cerebro, and Neptune.

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