What are Stacks (STX)?

Stacks is a cryptocurrency platform built with a layer-1 blockchain that allows the seamless transfer of DeFi applications and smart contracts to the Bitcoin network. When these platforms are added to the bitcoin network, they retain all their usual features including the security protocol and stability.

The decentralized apps on the platform are designed to be modular and open. This implies that the developers are allowed to build over each other’s apps allowing them to add extra layers of functions that would be ordinarily impossible to add for regular apps. The build base of the Stacks platform is Bitcoin, a network that is widely adopted and arguably the best and safest blockchain in existence.

The Stacks network is powered by or native token, STX. The token facilitates the execution of smart contracts on other related services on the network.

Before a rebrand in 2020, the Stacks platform was known as Blockstack. The rebrand was in order to separate the platform and other open-source projects from Blockstacks PBC.

In January 2021, the platform’s minnet for Stacks 2.0 was launched.

Who are the Founders of Stacks (STX)?

Initially, the Stacks network was funded by a collection of major venture capital funds, some of which include Digital Currency Group, Winklevoss, and Y Combinator. The system was developed by a company located in New York, known as Blockstack PBC.

However, the company has changed its name from Blockstack PBC to Hiro System PBC as it has joined a collection of companies that are using the Stacks platform for building apps.

The Blockstacks PBC company was co-founded by Ryan Shea and Muneeb Ali. Muneeb Ali is an MA and Ph.D. graduate of Princeton University and founded the Stacks platform with Shea back in 2013. Ali currently serves as the CEO of Hiro Systems PBC.

Within the time Ali served as the company’s CEO, co-founder, Shea also served as the co-CEO from 2013 up until 2018 when he decided to leave the project in order to focus on other points of interest. Before his service in Stacks, Shea gained major experience in software engineering and worked for several corporations. He is currently involved with other cryptocurrency projects, one of which is co-founding a tech startup that is currently operating in stealth.

What is Stacks (STX) used for?

The stacks network serves the function of bringing apps created on other systems including apps with ERC-20 specifications into the Bitcoin network. Although it can be used by regular individuals, for the developers on the platform, it presents more opportunities such as the redevelopment of existing apps to make them better. This development allows them to do things that would normally be impossible for a single decentralized app.

The network also has a native cryptocurrency token known as STX. The token for the processing and execution of transactions on the network, before proceeding to register the digital assets to the Stacks 2.0 platform. All of these functions provide a level of value for the cryptocurrency, this, in turn, allows its holder to be able to trade it for other cryptocurrency pairs such as USDT and WBTC.

What Is the Unique Point of Stacks (STX)?

The Stacks network has the aim of taking one of the biggest qualities of the Bitcoin network and including an extension of functionality. According to the platform, it provides this service without the need for a fork or an alteration of the original Blockchain.

The platform is able to execute this function by connecting to the Bitcoin Blockchain directly via its proof-of-transfer consensus algorithm which requires miners to make payments in Bitcoin in order for new Stacks tokens to be minted. Participants on the stack network can also stack their STX tokens to earn rewards in the form of Bitcoin.

The Stacks network has also unveiled a platform known as Clarity, which is a new type of smart contract programming operating with a non-ambiguous Syntax that allows for the ease of build and security of the platform. The same programming language is also used by the other blockchains including the Aglorand Blockchain.

Apart from the series of functions that differentiate the Stacks system from its contemporaries, the network was also the first cryptocurrency SEC qualified in the United States. This qualification allowed the platform to launch a Reg A+ sale cash offer which was worth $28 million for the platform’s native token, STX.

How many Stacks (STX) coins are in circulation?

Based on the recently reviewed economic policy which was launched with the Stacks 2.0 platform, the supply of the newly minted STX tokens in circulation will be decreased by 2020.

According to the projections estimated by the company, there is an expected amount of 1.82 billion STX tokens to be in circulation by 2050. This is in comparison to the 739.7 billion tokens which was in circulation in January 2021.

The whitepaper of the Stacks platform dictates that in total, 1,000 STX per block will be disbursed in the first four years and the amount will then be reduced by 500 STX per block in the following four years. After this, the amount will be reduced to 250 STX per block, before finally settling into the 125 STX per block for all eternity.

In all, 1.32 billion STX tokens, an amount that was equal to 6.6% of the initial supply was assigned to the founders and another 7.9% was allocated to the Stacks team. These allocations are scheduled to be unlocked in three years with the next release scheduled for November 2021.

Is the Stacks (STX) Network secured?

The Stacks network has a Bitcoin base layer and also uses a proof of work consensus mechanism for its security. On the Bitcoin network, there is a requirement of a joint effort from thousands of nodes and miners in protecting the network against attacks through a process that makes it economically and computationally impractical to subvert the network.

In addition to these security measures undertaken by the network, it also applies the proof-of-transfer consensus model. The consensus model is a mining protocol that lets the participants change the base currency from BTC to STX. A process that effectively increases the integrity of the Stacks network through BTC.

How do I buy Stacks (STX)?

Although Stack is a relatively new addition to the crypto world, its service that allows developers to work on different applications has greatly improved its level of adoption among developers and also individuals interested in the cryptocurrency world. The STX tokens are now widely available across several exchanges and they can be easily purchased by following the steps below.

* Open an account with the crypto trading platform.

* Transfer the specific amount of your fiat currency to your account.

* Wait for your deposit to be confirmed and Buy STX through your trading account.


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