Stacks (STX): Let's Understand With the 5W1H Method

Ne (What):

• Stacks (STX) is a layer 2 (L2) solution that enables smart contract and decentralized applications (dApp) development on the Bitcoin blockchain.

• This way, developers can create innovative applications by taking advantage of Bitcoin's security and liquidity.

• Rather than embedding smart contracts directly into the Bitcoin blockchain, Stacks runs them on a separate blockchain connected to Bitcoin.

Kim (Who):

• Stacks (STX) was founded in 2014 by Muneeb Ali and Jared Wilkinson.

• Ali previously founded the decentralized identity platform called Blockstack.

When:

• The Stacks (STX) blockchain and token were first launched in December 2017.

Why:

• Bitcoin by itself does not support smart contracts. The Stacks (STX) protocol aims to solve this problem by allowing developers to write smart contracts and dApps leveraging the security of the Bitcoin blockchain.

• In this way, it is aimed to develop innovative decentralized applications with the security and liquidity provided by Bitcoin.

How:

• The Stacks (STX) blockchain uses Bitcoin's Proof-of-Work (PoW) consensus mechanism.

• Bitcoin miners also secure the Stacks blockchain.

• Users obtain STX tokens by locking Bitcoin on the Stacks blockchain. Locked Bitcoins are used to secure the Stacks blockchain.

• The locked Bitcoins can then be retrieved after a certain period of time.

Additional Details:

• STX Token Usage Areas:

  • Paying transaction fees on the Stacks blockchain.

  • Staking to participate in network governance.

  • Providing access to dApps.

• Stacks Blockchain Mimari:

  • The Stacks blockchain consists of two layers:

    • Main chain (Core): The security layer connected to the Bitcoin blockchain.

    • X-chain: It is the layer where smart contracts and dApps run.

Conclusion:

Stacks (STX) is an innovative L2 solution that makes it possible to use the security and liquidity of Bitcoin to develop smart contracts and dApps.