- Stacking is a pivotal part of the Stacks network. It not only helps Stacks to reach a consensus, but also helps it to stay secure and allows it to process transactions.
- Stacking is part of the Proof of Transfer consensus mechanism.
- With Stacks, users can “stack” and earn bitcoin with every cycle of 2,100 Bitcoin blocks.
STX is the cryptocurrency of the Stacks network and is being used as a fuel for blockchain transactions, enabling holders to earn bitcoin by Stacking.
What Is Stacks (STX)?
Stacks is a layer-1 blockchain solution, designed to bring smart contracts and decentralized applications (dApps) to Bitcoin (BTC).
These smart contracts fetch Bitcoin without changing any features, which makes them invaluable. Their security and stability are two things that make smart contracts genuinely great.
The dApps on Stacks are open and modular, which means developers are able to build on top of each other’s apps to produce features that would otherwise be impossible. Additionally, everything on the network is fixed on the most secure asset in operation, and perhaps the one most widely used, Bitcoin, since Stacks uses Bitcoin as a base layer.
The platform is driven by the Stacks token, STX. STX is used to power the implementation of smart contracts, to process transactions, and for registering new digital assets on the Stacks 2.0 blockchain.
The platform was previously known as Blockstack, but was rebranded as Stacks in 2020 to “separate the ecosystem and open-source project from Blockstack PBC.” Thus, the company built its original protocols and launched the mainnet for Stacks 2.0 in January 2021.
As previously mentioned, Stacking is a pivotal aspect of the Stacks network, which assists Stacks in reaching a consensus, which allows it to remain secure, and better process transactions. Moreover, Stacking is part of the Proof of Transfer consensus mechanism. When stacking, people can earn bitcoin during each cycle of 2,100 Bitcoin blocks. Depending on the variation “from cycle to cycle,” users can earn different quantities of bitcoin. It is possible to view how much stackers have made on stacking.club.
Potential users can easily get started with Stacks, as it can be done without having to run a node, and validating transactions to stack is not required. All one needs to do is temporarily lock their STX in their wallet. Users can stack by themselves, or pool with others if the minimum hasn’t been met.
Recent Developments and Future Events
According to their post, the Stacks Foundation is committed to articulating and sharing their intentions, approaches, and goals so that their ecosystem can better self-organize, while pursuing the mission of building a user-owned internet. The statement reads:
“Stacks is building a user-owned internet. We believe in a future where the ownership rights you enjoy in the physical world extend to the digital world—an internet where everyone can participate in value creation.”
On July 29th, Stacks added another dimension to its supporting infrastructure by listing the asset on their Exchange. The listing is now live and includes STX-USDT, STX-USDC, and STX-USD pairs.
Amadeo Pellicce, Product Manager at Blockchain.com, said:
"At Blockchain.com, we believe in the revolutionary power of Bitcoin and its promise to empower anyone anywhere to control their own money. [...] We've admired the work the Stacks ecosystem has done to develop tooling and infrastructure that extends what is possible on Bitcoin and are delighted to make the Stacks asset available to our users."
The Stacks Foundation kicked off by sending out invitations for Clarity Universe, a portal that helps developers, projects, and companies be more successful. The project was designed by core Stacks and Algorand engineers to open up new smart contract opportunities for developers and users, while simultaneously protecting them from bugs and attacks.
On The Flipside
- As grand as Stacks’ goals are, they still need time to grow and expand their market capitalization.
- As some users have said, the main worries for Stacks are that, either nobody builds anything on the platform, or, if they do, their application doesn’t take off.
- Providing better support to their developers now than they have in the past is perhaps the key.
Like Bitcoin, Stacks is a decentralized network. No one company or person controls it. Users all over the world have the chance to contribute to Stacks.
The Stacks community is engaged and active, with each post receiving up to 6K views and a couple of hundred comments. However, not every post receives this much attention.
On the other hand, considering the lacklustre size of Stacks’ market capitalization, holding 63rd place in the charts, according to CoinMarketCap, it is surmised that their community is small in scale.
The company provides few options for joining the community. According to its website, users can either enter the main server for the Stacks ecosystem with 8,000 members, or join the main Telegram channel which consists of roughly 55,000 members.
The Stacks ecosystem collects independent entities, developers, and community members to build a user-owned internet on Bitcoin.