Stacks - Smart Contracts on Bitcoin

Stacks (STX)

What is Stacks?

Stacks is a protocol designed to allow for the development of smart contracts on the Bitcoin blockchain. This feature is achieved without enforcing any change to the Bitcoin code. Transactions are verified through the Bitcoin blockchain so Stacks itself is not mined.

Why does Stacks have value?

The majority of the blockchain ecosystem now revolves around smart contracts. Besides Ethereum, there are many other protocols like Algorand or Avalanche that focus on providing smart contract building tools. Stacks offers this feature with settlement on a well-established and secure blockchain, Bitcoin, that is fully decentralized and unhackable. Moreover, holders of STX tokens (known as stackers) can get rewards in BTC. Stacks is trying to bring smart contract utility to Bitcoin, which as of right now, is only used to buy/sell/hold the Bitcoin cryptocurrency. Stacks could power decentralized applications (Dapps) on Bitcoin allowing all types of products including borrowing and lending, interest bearing deposits, decentralized exchanges, and potentially even crypto gaming and NFT’s.

What are the Pros of Stacks?

●       It could allow Dapps to run on the Bitcoin blockchain

●       Stakers can receive BTC.

●       Its token sale was approved by the SEC.

What are the Cons of Stacks?

●       It may be hard to recruit developers to create projects on Stacks versus other smart contract platforms like Ethereum, Algorand, Solana, etc.

What are STX’s tokenomics?

The maximum supply of Stacks is capped at 1.82 billion. The emission rate will halve each four years, similar to Bitcoin, from the current 1,000 STX to 125 STX per block.

Who founded Stacks?

Stacks is developed by Blockstack PBC, a company founded by Muneeb Ali and Ryan Shea.

Who are Stacks investors?

Stacks has conducted various token sales. Among its investors are Winklevoss Capital, Y Combinator, Digital Currency Group, Frontier Ventures, Hashkey, IOSG Ventures, Fundamental Labs, Tembusu Partners, Fenbushi Capital, Omar Darwazah, SNZ Holding, Union Square Ventures, Blockchain Capital, Harvard Management Company, and The Spartan Group.

Concise Crypto Grade:

B  :It’s hard to bet against a protocol that has so much brainpower and money behind it. Stacks has set out to bring a new type of utility to the Bitcoin network, smart contracts. If they are successful, they could up-end the entire industry and render other smart contract platforms like Ethereum and Solana obsolete. We believe that there is a place for Stacks and that adding additional utility to Bitcoin is valuable. However, the future of crypto is multi-chain and ecosystems like Ethereum, Solana, Algorand, etc. have already found product market fit and will be around for the long-haul. Stacks is a very interesting project and one you should definitely keep your eye on.

Where can I buy STX?

Binance, Gate.io, KuCoin, OKEx, Okcoin, Crypto.com.

What ecosystem does Stacks run on?

Bitcoin (as the base layer)