The $STX token is the native cryptocurrency of the Stacks platform and enables the development of smart contracts and decentralized applications (dApps) on the Bitcoin network. Stacks offers broader blockchain solutions using the security and stability of Bitcoin and allows smart contracts to be run on the Bitcoin network.
How Does Stacks Work?
#Stacks Uses an innovative consensus mechanism called Proof of Transfer (PoX). In this mechanism, STX miners generate STX tokens using Bitcoin and these transactions are verified on the Bitcoin network. Stacks blocks are secured by Bitcoin's hash power, which brings the security of Bitcoin to the Stacks network.
Stacks also uses an open-source smart contract programming language called Clarity. Clarity allows developers to write smart contracts that are secure and have specific outcomes. This language creates secure and transparent contracts that can directly read and write Bitcoin's state.