What is Stacks and STX Token? It Enables DeFi, NFTs, Apps and Smart Contracts for Bitcoin

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Welcome to the New to Crypto Podcast designed to guide you through the crypto landscape with pinpoint accuracy created for the new and intermediate crypto investor. Join your host Crypto Travels Michael as he takes you through the different facets of getting started and succeeding in your crypto journey. New to crypto podcast brings you new episodes daily Monday through Friday with surprise bonus episodes sometimes on the weekend. Let me ask you, are you new to crypto and don’t know where to start? Are you more experienced but have questions? Then you’re in the right place. This podcast is designed for you coming at you from the Trading Center and the Lifestyle Dezign Studio. Here’s your host Crypto Travels Michael.

Hey, welcome to the podcast. I’ll tell you this show has been growing and exploding. I’m excited about the things that we’re working on for the coming New Year in 2022 to share with you. Today’s episode is all about Stacks. So what is Stacks? Stacks is a platform that facilitates the use of smart contracts and decentralized applications on the network. The blockchain platform generates its power from Bitcoin, as it depends on it for security, and the execution of transactions. The Bitcoin network acts as the finality and security layer for the smart contracts contained and executed in the Stacks blockchain. Meanwhile, it is possible through the proof of transfer mechanism. The platform adopts the connection between Stacks blockchain and Bitcoin enables execution of transactions on the Stacks network, as well as verification on the Bitcoin Blockchain. So let’s break down some benefits and features. Proof of transfer. Unlike other blockchain projects that utilize the proof of work and proof of stake mechanism to secure their network Stacks has developed a new consensus algorithm that is perfectly suitable for its operation and to secure the network.

The mechanism is deduced from the proof of burn concept known as proof of transfer. It has marked the first consensus mechanism to use to blockchains and this concept ensures that already mined and existing cryptocurrencies of an existing and verified blockchain are not burnt. Instead, they secure the new blockchain. The proof of transfer mechanism eliminates the system of burning cryptocurrencies, it requires the mind cryptocurrencies are transferred to other participants within the ecosystem. The new proof of transfer consensus mechanism helps the network to facilitate its reward protocol. And it’s interesting to say that the system allows the network participants to receive rewards as well as transaction payouts in existing and stable cryptocurrencies. It gives these participants the opportunity to participate in new blockchain at the same time. This system allows Stacks to eliminate challenges that users experience with new blockchains. Thus, new users feel confident about joining the network. Since the network is basically integrated with an already existing blockchain, being Bitcoin. It uses an extremely safe blockchain to secure new chains, without the need to require new Proof of Work chains and cryptocurrencies.

The Stacks blockchain provides support for smart contracts and decentralized applications, also known as dapps. It also enhances the creation of flexible virtual assets that are easily transferable. In a bid to provide support for the smart contracts. The network uses the clarity programming language to secure these activities. Clarity programming language is predictable programming language that uses no compiler. Stacks has deployed this programming language to help it bring smart contracts to Bitcoin. More precisely, the programming language uses predictable source code for executing smart contracts while publishing them on the blockchain nodes. So let’s break down the connection between Stacks and Bitcoin for a second. Stacks and Bitcoin are basically two interconnected blockchain networks that work hand in hand. It is quite interesting that both blockchain networks do not depend on each other. They are independent networks connected through the proof of transfer consensus mechanism. Via this system, miners can transfer new crypto currencies as well as smart contracts on Bitcoin to other participants of the Stacks network. Let’s go over the upgraded the 2.0 Stacks. 2.0 is an upgraded innovation from the Stacks team to bring secure apps and smart contracts to Bitcoin, and the Stacks. 2.0 main net launch allows developers to utilize the Stax protocol to build a user own internet on Bitcoin.

The platform allows users to earn bitcoins. So what are some Stacks use cases Stacks has offered amazing functionality for its ecosystem, especially to the Bitcoin network, it proposes new features to the Bitcoin network, since bitcoin is static and not flexible for adjustments through its integration with Bitcoin. Users can initiate new features to the network, without having to change Bitcoin itself. A major challenge for the Bitcoin network is scalability, and Stacks blockchain seeks to solve the scaling issues with Bitcoin. Stacks extends the Bitcoin transaction capacity. Since Bitcoin has limited space for transactions, Stacks adopts bitcoin’s efficient security, and finality to protect transactions conducted within the ecosystem. The network uses Bitcoin to settle transactions on the Bitcoin Blockchain for each block generated. Let’s go over the token for a moment, that STX token is the token of the Stacks blockchain, and the activities performed on the network rely on STX tokens. STX tokens basically foster the execution of smart contracts on the Stacks network. So the token functions as a tool to publish new smart contracts to the blockchain. It is also used for transaction processes, such as paying fees and receiving rewards. The token follows the same successful trail with its blockchain network. It has attracted the interest of a significant number of users, especially users who crave clarity smart contracts.

The token is available to trade on different current cryptocurrency exchanges. And I highly recommend that you you do a deeper dive and some more research on this project. It’s really interesting, and this is what I’m going to be looking and following in the future. If you’d like today’s episode, definitely like and subscribe to the podcast. We’re available on all major platforms and also on YouTube throughout 2022 we’ll be interviewing some of the top names in crypto and in the in the investment world, and I look forward to bringing you quality content and value as the time goes on. Definitely chime in here tomorrow for another special episode. Until then, make it a great day.

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By: cryptotravelsmichael
0

Table of Contents

Welcome back to another podcast episode! Today’s discussion will be about what Stacks and the STX Token are. Let’s jump into it! 

What Is Stacks? 

The Bitcoin network has scalability concerns, which is one of its most significant drawbacks. These main flaws have caused worries among blockchain applications, prompting innovations to address them. Stacks (STX), a layer 1 blockchain project, addresses Bitcoin’s scalability issues.

Stacks is a network platform that makes it easier to employ smart contracts and decentralized apps. The blockchain platform is powered by Bitcoin since it relies on it for security and transaction execution.

To put it another way, the Bitcoin network serves as the finality and security layer for the Stack Blockchain’s smart contracts. Moreover, it is achievable thanks to the platform’s Proof of Transfer method.

The connection between the stack blockchain and Bitcoin allows transactions to be executed on the stack network while still being verified on the Bitcoin blockchain.

The Stacks Team

Stacks began to take shape in 2013. Its original goal was to create a better internet system. Muneeb Ali and Ryan Shea, the founders of Blockstack, came up with the idea for the project.

After some years, capital funds such as Combinator, Digital Currency Group, and Winklevoss began to back the initiative.

Following that, the project was given further attention. Leading researchers from MIT, Princeton, and Stanford are among the team’s members. 

STX Token 

The STX token is the Stacks Blockchain’s native token. STX tokens are used to carry out network activities.

The implementation of smart contracts on the Stacks network is facilitated via STX tokens. The token is used to create new smart contracts and publish them to the blockchain. It’s also utilized for transactional tasks like fee payment and prize distribution. 

With its blockchain network, the coin continues on the same prosperous path. It has piqued the interest of a large number of users, particularly those who are looking for Clarity smart contracts.

The token can be bought and sold on legitimate and well-known cryptocurrency exchanges. 

Pros Of Stacks 

Crypto users, particularly members of the Stacks community, benefit greatly from Stacks. On every activity, users can benefit from the combined characteristics of two different blockchains thanks to the Stacks blockchain.

Members of the DeFi community can use Bitcoin’s advanced capabilities while conducting smart contracts.

Stacks also provides members with the option to earn Bitcoins. Bitcoin is generally used to participate in the network’s reward programs. Stakers on the Stacks blockchain have the option of earning their rewards in Bitcoin rather than any other token that they would have to convert afterwards. 

Stacks adopts bitcoin's efficient security and finality to protect transactions conducted within the ecosystem.

- Crypto Travels Michael

Here's What We Discussed in Detail in This Interview

  • What is Stacks?
  • Benefits and features of Stacks
  • Stacks 2.0
  • The STX tokens

Killer Resources

HOW TO REACH TO CRYPTO TRAVELS MICHAEL

Final Thoughts

With its unique characteristics, Stacks (STX) is a significant contribution to the blockchain sector. It is true to argue that Stacks’ services will increase the acceptance and use of Bitcoin in the crypto business since it allows consumers to profit from the benefits of combining smart contracts with Bitcoin’s capabilities.

The Stack blockchain’s excellent functionality allows for the network’s prosperous future in the sector to be predicted.

The ability for users to earn BTC just by engaging in the network is also a draw to the network.

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