What is Stacks (STX)? Everything you need to know about STX

Stacks (STX) is a layer-1 blockchain designed to bring decentralized applications (dApps) and smart contracts to the Bitcoin blockchain, leveraging its high security.

In this article, AZcoin will provide you with all the information you need to know about Stacks (STX), from how it works to its use cases and future development potential.

What is Stacks (STX)?

What is Stacks (STX)?

What is Stacks (STX)?
What is Stacks (STX)?

Stacks (STX) is a layer-1 blockchain, meaning it is an independent blockchain that can exist on its own, without relying on any other blockchain. However, what makes Stacks unique is its connection with Bitcoin and decentralized applications (dApps).

Stacks was created with the goal of making Bitcoin a highly secure smart contract platform. This opens the door to many new applications on the Bitcoin platform, from DeFi (decentralized finance) to NFT (non-fungible token) applications. Therefore, Stacks not only brings security and decentralization to users but also provides them with advanced smart contract features.

When were Stacks born?

Muneeb Ali and Ryan Shea founded Blockstack, later renamed Stacks, in 2013 and began developing the project in 2017. The initial goal of the project was to provide a superior internet system.

During its development, the project attracted financial support from investment funds such as Y Combinator, Digital Currency Group, and Winklevoss Capital. Additionally, the development team welcomed many new members, including leading researchers from prestigious universities like MIT, Princeton, and Stanford.

Stacks (STX) Highlights

Stacks (STX) Highlights
Stacks (STX) Highlights

Similar to Hedera, Stacks offers several standout features, including:

Connection with Bitcoin

Stacks uses Bitcoin as a base to provide security and decentralization. This makes deploying applications and smart contracts on the Stacks platform safer, thereby attracting more developers and users.

Smart Contracts

The Stacks platform allows for the creation and execution of smart contracts, opening the door to many decentralized applications. This makes building applications easier and more convenient. Additionally, the high security of Stacks ensures that smart contracts are executed exactly as programmed in the code.

Support for dApps

Stacks is an ideal platform for deploying decentralized applications, including DeFi, NFTs, and various other types of applications. Combining Bitcoin’s security and decentralization with the ability to execute smart contracts, Stacks promises to be an attractive platform for developers and users.

Security Protocol

Stacks uses the Proof-of-Transfer (PoX) security protocol to secure its blockchain. This makes mining more efficient while minimizing the risks associated with mining. Additionally, the PoX protocol allows users to earn additional income by proving ownership of STX tokens.

Energy Efficiency

Stacks uses Bitcoin as an energy source, allowing it to operate more efficiently than other Proof-of-Work blockchains. This helps the Stacks network run sustainably and more energy-efficiently, while also reducing negative environmental impacts.

How do Stacks work?

Stacks connects with the Bitcoin blockchain through a new consensus mechanism called Proof of Transfer (PoX). This mechanism is designed to ensure high security similar to Proof of Work while maintaining the scalability of Proof of Stake.

There are two types of participants in the Proof of Transfer process:

  • Miners: These individuals bid their BTC holdings to have the opportunity to mine blocks on the Stacks network and receive rewards. These rewards include STX tokens and transaction fees.
  • Stackers: These individuals lock up their STX tokens to receive BTC from miners. The amount of BTC received is proportional to the amount of STX tokens locked up.

Learn about Stacks (STX)

Learn about Stacks (STX)
Learn about Stacks (STX)

What is STX token?

The STX token is the currency unit of the Stacks network, used for transaction fees and deployment costs of applications on the platform. It can also serve as a tool for payment and exchange among users within the Stacks community.

Technical specifications of STX token

  • Ticker: STX
  • Blockchain: Stacks Blockchain
  • Smart contract: To be updated
  • Token type: Utility Token
  • Total supply: 1,320,000,000 STX (subject to increase in the future)
  • Circulating supply: To be updated.

Token allocation STX

  • Founder distribution: 14,8%
  • Equity investor distribution: 9%
  • Employee distribution: 6,2%
  • 2018 token sales: 32,7%
  • 2019 token sales: 9,9%
  • Reg a app mining: 3,3%
  • Short-term treasury: 24,1%

What is the STX token used for?

The STX token serves multiple purposes, including:

  • Paying transaction fees within the Stacks ecosystem.
  • Registering digital assets.
  • Publishing and executing functions of Clarity smart contracts.
  • Used for staking and receiving block rewards for miners.

Where to buy STX tokens?

Where to buy STX tokens?
Where to buy STX tokens?

Currently, you can buy STX tokens on many top best crypto exchanges such as Binance, Huobi Global, OKEx, Gate.io, VCC Exchange, BitMax, and many others. Before making a purchase, make sure you have sufficient knowledge and understanding of the risks associated with investing in cryptocurrencies.

Wallet to store STX tokens

STX tokens can be stored in ERC-20 compatible cryptocurrency wallets, including Ledger Nano S, Ledger Nano X, Trezor, Trust Wallet, and many other wallet types. You can also use wallets provided by Stacks developers to store and manage your tokens, similar to storing Litecoin.

Should you invest in Stacks (STX)?

As with any type of investment, investing in Stacks (STX) carries risks. However, with its potential to bridge Bitcoin and decentralized applications, Stacks promises to be one of the promising blockchain projects in the future. You should carefully consider and conduct the evaluation process before making a decision to invest in STX or any other cryptocurrency.

The end

Above is some basic information about Stacks (STX) – a promising blockchain project in the cryptocurrency world. AZcoin hopes that this article has provided you with an overview of Stacks and helped you gather more information to make informed investment decisions. Thank you for following along!

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