作者：Daniel Li，CoinVoice
Recently, as the crypto industry has entered a rising market again, people are paying more and more attention to exploring new 100x tokens and discovering potential projects. In this round of market, Bitcoin-related projects or tokens have become the focus of many people. Whether it is ORDI or STAS, they have created their own myths.
At present, the market generally believes that the opening of the next bull market will be led by Bitcoin, and related projects around Bitcoin will play an important role in promoting it. However, relying solely on inscriptions or MEME coins cannot support Bitcoin to lead the entire bull market. The market needs to further explore the potential of Bitcoin. As the representative of Bitcoin smart contracts, Stacks will take on more responsibilities. It will further unleash the potential of Bitcoin smart contracts and be fully prepared for the next bull market.
Stacks is a complete Bitcoin Layer 2 solution
The Stacks public chain was co-founded by Muneeb Ali and Ryan Shea in 2013. It was originally named Blockstack and later renamed Hiro Systems PBC. The project raised funds under Reg A under the supervision of the SEC, becoming the first blockchain project that meets the SEC's regulatory standards, which also won it wide recognition and trust. So far, Stacks has completed 5 rounds of financing, with a total of US$88 million.
Stacks Versions
Stacks 1.0: Stacks 1.0 is an early version of Stacks, designed to provide users with decentralized identity authentication and storage services. This version was created in 2013 and is the initial exploration and development of the Stacks project in the field of decentralized applications.
Stacks 2.0: Stacks 2.0 was officially launched on January 14, 2021. This version introduces a consensus mechanism called "PoX", which enables the Stacks public chain to interoperate with the Bitcoin blockchain and provide higher security and scalability.
Stacks 2.1: Stacks 2.1 was officially activated on March 20, 2023. The new version strengthens the connection to Bitcoin, including improved Stacking mining efficiency, Clarity language upgrade, better bridging function, decentralized mining, etc. This version supports sending Stacks assets directly to Bitcoin addresses, strengthening the connection to Bitcoin.
Nakamoto version: Stacks will launch a version called "Nakamoto" in Q4 2023, which will transform Bitcoin into the basic settlement layer and reserve asset of the open metaverse. It will also launch an asset called "sBTC", which can be minted in a decentralized manner on Stacks and support 1:1 exchange for actual Bitcoin assets.
Stacks Technical Principle
Stacks uses a unique sidechain model that is different from traditional sidechains. It integrates with the Bitcoin mainchain by submitting anchor transactions, which contain summaries and additional information of the block header information on the Stacks chain to ensure its immutability and allow applications and smart contracts to settle transactions on the Bitcoin mainchain.
In addition, Stacks has its own completely independent chain and programming language Clarity. By empowering developers to design dynamic smart contracts on the second layer, Stacks enhances the first layer of Bitcoin. It achieves a mutually beneficial connection between the two layers, placing complex calculations and interactions on the second layer while relying on the Bitcoin base blockchain to ensure the security and finality of transactions. This innovative architecture enables Stacks to expand the use and functionality of Bitcoin and provides new opportunities for developers to build decentralized applications and smart contracts.
Technical features of Stacks:
Proof of Transfer (PoX) consensus algorithm: Stacks uses a unique PoX consensus algorithm, in which miners and validators are two different roles. Validators stake STX to mine Bitcoin, while miners stake BTC on the Bitcoin main chain to mine STX. This consensus algorithm ensures the security and decentralization of the Stacks network and transfers the value of Bitcoin to the Stacks ecosystem through the mining process. The innovation of the PoX consensus algorithm is to increase the security and stability of the Stacks network through the value transfer of Bitcoin, while providing a sustainable economic model.
Smart contract language Clarity: Clarity is a smart contract language on Stacks that is safe, verifiable, and has no side effects. It uses a static type system and functional restrictions to ensure that there is no ambiguous behavior during the execution of the contract. Clarity's design reduces the possibility of contract errors and provides reliability and auditability. Its rich type system and side-effect-free programming paradigm enable developers to build complex contract logic and increase the predictability and security of contracts.
Gaia Storage System: Gaia is a decentralized storage solution provided by Stacks. It focuses on the ownership and privacy protection of user data. Users can associate their data with their identity and use it in decentralized applications. Gaia ensures the privacy and security of data through encryption and flexible storage provider selection. Storing user data outside the blockchain improves the performance and throughput of Stacks applications.
sBTC: sBTC is a project in the Stacks ecosystem that implements Bitcoin's programmability and decentralized financial applications. sBTC introduces Bitcoin assets on Stacks through a trustless two-way peg mechanism. This allows users to use complete smart contracts on Stacks and trade Bitcoin assets in a decentralized environment. The introduction of sBTC has brought more liquidity and funds to the Stacks ecosystem, driving the development and growth of the ecosystem.
Stacks Unlocks Bitcoin’s Potential
The popularity of Ordinals has inspired the culture of Bitcoin construction. As more and more developers flock to the Bitcoin ecosystem, Bitcoin fundamentalists are increasingly resistant to this. They believe that overdeveloping Bitcoin's functions will lead to changes in Bitcoin's "value storage" characteristics, which is not conducive to the long-term development of Bitcoin. Bitcoin builders believe that as the first public chain, Bitcoin cannot only be a value public chain, it needs to take on more responsibilities. In the past, both sides insisted on their own views and seemed unable to convince each other.
Until recently, with the help of the Bitcoin spot ETF boom, the relevant narrative around Bitcoin has become the current mainstream trend, and the long-standing problem between Bitcoin fundamentalists and builders seems to be expected to be reconciled. Just last month, at the "Bitcoin Builders Hong Kong" event jointly organized by Stacks, ALEX, Xverse and Spartan Group, Yan Ma, a partner of Spartan Group, expressed his views on this. He believes that the value storage attribute of Bitcoin as an asset can be discussed separately from other functions. The original important features have not changed and will not change at the L1 level, but at L2 or other levels, Bitcoin has more possibilities.
Currently, among the many second-layer solutions of Bitcoin, Lightning Network and Stacks are particularly prominent. The current focus of Lightning Network is on token payment and asset chain, while Stacks, as a representative of Bitcoin smart contracts, has released more potential of Bitcoin public chain. Stacks has realized functions similar to Ethereum on the basis of respecting the characteristics of Bitcoin as a value public chain. Developers can build various smart contracts and decentralized applications on the Stacks public chain, while enjoying the security and decentralization characteristics brought by Bitcoin.
What changes does Stacks bring to the Bitcoin ecosystem?
Enhanced Bitcoin functionality: By extending Bitcoin's scripting capabilities, Stacks enables decentralized finance (DeFi), the metaverse, Web 3.0, and other use cases. These innovations make Bitcoin more widely applicable in more areas. Developers can build dApps that use real Bitcoin for payments, mortgages, token issuance, non-fungible token (NFT) transactions, and decentralized autonomous organizations (DAOs). Such functional enhancements unlock the potential of Bitcoin and open up new possibilities for the development of Bitcoin in decentralized applications and decentralized finance.
Improved Bitcoin security: Stacks’ consensus mechanism and technical improvements help improve Bitcoin security. By interacting with the Bitcoin main chain, Stacks’ transactions inherit not only Stacks’ probabilistic immutability but also Bitcoin’s security. This allows participants in the Bitcoin ecosystem to enjoy a more reliable and secure transaction environment, enhancing overall trust. Improved security is crucial for the further development and widespread application of Bitcoin.
Improved Bitcoin transaction efficiency: Stacks' technical improvements increase Bitcoin transaction throughput and dApp responsiveness while maintaining the security of Bitcoin settlement. This means that Bitcoin transactions can be confirmed and processed more quickly, improving overall transaction efficiency. This is a very important improvement for the growing number of Bitcoin users and transaction volume.
Built a native BTC ecosystem: Stacks built a native ecosystem for Bitcoin. By finding a way to perform operations directly on Bitcoin, Stacks enables scalable transactions and general smart contracts. This native BTC ecosystem makes Bitcoin the core asset of the entire ecosystem, further promoting the widespread application and development of Bitcoin. Bitcoin holders can participate in various DeFi activities, governance, and decision-making, and enjoy more liquidity and usage options.
Stacks Ecosystem Project Inventory
The purpose of Stacks is to build a programmable, composable, secure and decentralized ecosystem that inherits Bitcoin. With the resurgence of Bitcoin-related narratives, the Stacks ecosystem has also ushered in an explosion of liquidity. As of now, the total locked-in volume (TVL) of Stacks has exceeded 20 million US dollars, which is nearly half of its historical high. In addition, the number of its wallets and smart contracts has shown a trend of substantial increase. It is expected that with the reopening of the Bitcoin market, the Stacks ecosystem will attract more projects and developers in the future. The following are several Stacks ecosystem projects worth paying attention to.
ALEX
Bitcoin's smart contracts have always been the "holy grail" of the crypto space. However, due to the complex BTC asset bridging process, the liquidity of BTC assets has not been fully developed, and the BTC ecosystem still holds great potential for the crypto lending market. ALEX is an open source DeFi protocol based on the Stacks public chain. Its goal is to provide a complete DeFi product for the Bitcoin network, just like Uniswap on Ethereum.
The Stacks public chain integrated at the bottom of ALEX is designed to connect native Bitcoin for the highest security while also supporting decentralized applications and smart contracts. Thousands of transactions on the blockchain will generate a hash on Bitcoin. As part of the consensus, Stacks transactions will automatically "settle" on each Bitcoin block, thus connecting the Bitcoin network and the Stacks blockchain and expanding the functionality of Bitcoin. It is precisely because of the aforementioned characteristics of Stacks that it is possible for ALEX to connect native Bitcoin at a low cost.
The mainnet version of ALEX currently has functions including Swap, lending, staking, yield mining, and Launchpad. In addition, as BRC20 is booming, ALEX has also launched a BRC20 order book exchange. $ALEX is the native token of Alex Labs and is also the platform’s reward medium for providing liquidity and staking. The current price of $ALEX is $0.06036.
Xverse
Xverse is a company that provides Bitcoin Web3 wallets. Their wallets support Ordinals and BRC-20 tokens. The wallet uses cold storage security technology to ensure the security of user assets. With Xverse, users can easily manage Bitcoin assets and Stacks-based assets, including Bitcoin and Bitcoin non-fungible tokens (NFTs).
Xverse's wallet user interface is simple and easy to use, similar to other Ethereum Virtual Machine (EVM) compatible wallets, and uses mnemonics for backup and recovery, which lowers the threshold for use. In addition, Xverse also allows users to securely manage assets such as Bitcoin on the first layer and second layer networks such as Stacks. After the wallet is created, two addresses are automatically generated, one for receiving and sending Bitcoin assets, and the other for managing assets on the Stacks network.
In addition to meeting users' needs for Bitcoin and Stacks-based asset management, Xverse also has a built-in "stack" function, which allows users to earn Bitcoin income by staking Stacks tokens (STX). This provides users with a way to earn additional income. Currently, Xverse is planning to implement BTC fast payment through the Lightning Network and sBTC. Once realized in the future, Xverse will undoubtedly become the most convenient Bitcoin Web3 wallet in the Stacks ecosystem.
Gamma
Gamma is the largest NFT trading platform in the Stacks ecosystem. It consists of three core products: NFT Marketplace, Launchpad, and Social Platform. Gamma aims to bring together collectors, creators, and investors in the Bitcoin ecosystem to explore, trade, and display NFTs.
With the rise of Ordinals, NFT activity on Stacks is also increasing. The Gamma platform supports the transfer of Stacks ecosystem tokens and plans to support Stacks NFT transactions in the future. In the past period of time, the transaction volume on Gamma has ushered in a continuous increase for many weeks. Users can use Gamma bot to cast unique digital works and collect or sell them. Using Gamma.io's code-free Bitcoin NFT creation tool, users can successfully create in just a few minutes.
GAMMA is the native token of Gamma, a protocol designed for non-custodial, automatic and active management of centralized liquidity. Users who stake GAMMA can receive 10% of the fees in all liquidity pools on Gamma as rewards. The current price of GAMMA token is $0.2327.
