Stacks is a unique blockchain project designed to extend the capabilities of Bitcoin. Instead of building a completely new blockchain, Stacks leverages Bitcoin's security layer and massive capital to create an additional layer (Layer 2), where decentralized applications (dApps) and smart contracts can be built and developed.
In this article, we will explore in detail the Stacks platform and the STX cryptocurrency.
What is Stacks?
Stacks (formerly BlockStack) is an independent blockchain, parallel to Bitcoin, but has a close connection with the largest cryptocurrency network in the world. Instead of building a completely new system, Stacks leverages the power of Bitcoin to create an additional layer, expanding Bitcoin's capabilities to a new height. This is completely different from other sidechains or layer-2 solutions, as Stacks has its own blockchain, its own coin (STX) and a unique consensus mechanism. Each block on Stacks is confirmed by Bitcoin, ensuring the highest level of security and transparency.
What is STX Coin?
STX Coin is the native cryptocurrency of the Stacks Blockchain platform. It is used for:
Rewards for miners: Miners will receive STX tokens when validating transactions on the Stacks network.
Transaction fee payments: Users must pay transaction fees in STX when using the Stacks network.
Governance rights provision: STX holders can participate in the management and development of the Stacks network.
Products of Stacks
The Stacks platform has 3 main products including: Bitcoin NFT, Bitcoin DeFi, BNS.
1. Bitcoin NFT
Bitcoin NFTs are unique digital artworks stored on the Stacks blockchain. Thanks to blockchain technology, each NFT is absolutely secure and cannot be replicated. You can easily buy and sell Bitcoin NFTs on exchanges like Gamma using Stacks (STX) or Bitcoin (BTC). Currently, there are many famous Bitcoin NFT collections like TwelveFold and Megapunks appearing in the Stacks ecosystem.
2. Stacks Staking
Bitcoin is currently the largest cryptocurrency, but to earn more profits from Bitcoin, you need a special tool. Stacks is that tool.
Stacks allows you to 'stack' your STX tokens. When you do this, you participate in a process called 'Proof of Transfer.' This process will give you the opportunity to earn additional Bitcoin.
Simply put, you are helping to secure the Stacks network and in return, you will be rewarded with Bitcoin.
3. Blockchain Naming System (BNS)
The Blockchain Naming System (BNS) is a new way of naming on the internet, built on blockchain technology. With BNS, you can own a unique and memorable name, similar to your home address online. The special thing is that your name will be recorded publicly and transparently on the blockchain, and no one can change it. This way, you will have a more reliable online identity.
How does the Stacks platform work?
You can imagine Stacks like a skyscraper. The ground floor of this building is the Bitcoin blockchain – an incredibly solid and secure foundation. On this foundation, additional floors (Stacks blockchain) are built to expand the space and create new apartments (applications).
To build these new floors, a special type of material (PoX consensus mechanism) is used. There are two groups of participants in the building process:
Miner: They act as the main builders, using Bitcoin bricks to construct new floors. Upon completing a floor, they receive a reward (STX tokens) and construction fees.
Stacker: They are individuals who want to own an apartment in the Stacks building. To do this, they will send a deposit (lock STX tokens) to the builders. The larger the deposit, the more benefits they will receive from the building.
Where to buy and sell STX Coin?
Currently, you can buy and sell STX coin on exchanges like:
Bybit.com
Bitmart.com
Okx.com
Among the exchanges above, Binance is currently the best platform for buying and selling STX.
Anyone who doesn't have an account on this exchange should register for one immediately to start trading.
Binance account registration link: https://binance.com/register?
Tokenomics
Some basic information about Stacks:
Name: Stacks
Ticker: STX
Type: Coin
Platform: Stacks
Algorithm used: Proof of Transfer (PoT)
Total supply: 1,818,000,000 STX
Launch: January 2020
Token STX allocation:
Token sale in 2018: 30%
Short-term treasury: 22%
Distribution for founders: 13.6%
Token sale in 2019: 9%
Long-term treasury: 8.3%
Distribution for equity investors: 8.2%
Distribution for employees: 5.6%
Reg A application mining: 3%
Token STX allocation schedule:
The Token STX allocation schedule will last from 2018 to 2027. Below are the details of the allocation over the years:
Roadmap
In early 2023: Stacks achieved an important milestone with the launch of the Stack 2.1 update, significantly enhancing the performance and scalability of the platform.
Next: The Hiro Developer platform has been robustly developed, providing developers with a comprehensive working environment to build decentralized applications on Stacks.
In the second quarter of 2023: Stacks focused on developing Subnets, opening up new opportunities for specific projects.
In April 2024: Another significant advancement was made with the deployment of the Nakamoto Release architecture, enhancing the security and scalability of the Stacks blockchain.
In July 2024: Stacks expanded the influence of sBTC, creating an important bridge between Bitcoin and the Stacks ecosystem.
Who created Stacks (STX) Coin?
The Stacks (STX) Coin project was co-founded by: Muneeb Ali and Ryan Shea.
Muneeb Ali: One of the founders of the Stacks project and currently running the Hiro company. He has extensive experience in building complex distributed systems and has taught at a prestigious university.
Ryan Shea: Also one of the founders of Stacks and a talented software developer. He has created many open-source tools widely used by the developer community. Before joining Stacks, he had startup experience in the software field.
Investor & Partner
The Stacks project has raised a total of $93.8 million from investors. This amount includes contributions from the community. Before expanding to the community, Stacks went through 4 rounds of official fundraising. Major investors participated in these funding rounds, including Hashkey, SNZ Holding, Union Square Ventures, and several well-known individuals in the investment field such as Omar Darwazah and Buddy Shakhashir.
In addition, Stacks has partnered with a variety of diverse projects and platforms, including well-known names like Ankr, Orbit Chain, 10 Pearls, and Injective. This collaboration demonstrates the growing influence of Stacks within the blockchain community.
Current exchange rate of Stacks (STX) Coin
Conclusion
Stacks (STX) is not just a blockchain, but also a bridge between the traditional cryptocurrency world and the future of decentralized applications. With security inherited from Bitcoin and significant scalability, Stacks promises to be a solid platform for next-generation blockchain projects.