What is Stacks (STX)? Stacks is a layer 1 blockchain that runs alongside the Bitcoin blockchain, using it for settlements. Developers can build decentralized applications and tokens on the Stacks blockchain.
Smart contracts on the Stacks network use a language called Clarity. How does STX work? The Stacks cryptocurrency, STX, is the primary currency on the Stacks blockchain, although other cryptocurrency tokens can also be built on the Stacks blockchain.
Stacks is an open source mainnet blockchain that connects to the Bitcoin blockchain through a consensus algorithm known as proof-of-transfer (PoX). Basically, the Stacks network produces blocks alongside the Bitcoin blockchain, but it is not a sidechain.
Stackers can lock a specified amount of STX coins to contribute to the Stacks blockchain and receive Bitcoin (BTC) as a reward for the time their STX is locked. This BTC comes from the amount of BTC that miners on the Stacks blockchain must send before they can produce blocks on the Stacks blockchain. These miners then receive STX through block rewards and transaction fees for mining on the Stacks blockchain. The Stacks blockchain aims to eventually switch to a consensus algorithm focused on burning assets known as proof-of-burn (PoB).
