Stacks is a project by cryptocurrency that plans to unlock the potential of the open-source Bitcoin blockchain by getting smart contracts as well as decentralized operations to Bitcoin. Primarily, it used to be known as Blockstacks, but in 2020, it was rebranded as Stacks.
The project was later designed as the layer-1 solution that utilizes Bitcoin for its base layer. Stacks (STX) tokens power this platform, and it fuels the implementation of smart contracts, the clearing of transactions, as well as the registration of new assets.
Let’s know more about Stcks(STX)
Stacks comes from the philosophy that the internet is not at its full potential to be the decentralized means for exchange and that it has to be. Big players like Facebook and Google have a lot more power than any other ordinary users.
Stacks is a first-layer ecosystem that is tied to Bitcoin; the smart contracts that it s bringing to Bitcoin do not affect any of Bitcoin’s features, and that includes the things that are responsible for making it popular and the stability and security it brings with itself.
The Stacks dApps are quite modular and open, which allows the developers to build over each other’s apps and bring out features that would not be possible in any other way. As Bitcoin backs Stacks in the base layer, anything and everything that happens to the Stacks ecosystem gets backed by the best secure blockchain there is.
This is an upgraded version of the Stack team to get secure apps and bring smart contracts to Bitcoin. The Stacks 2.0 mainnet launch lets developers utilize the protocol of Stacks to form a user-owned internet by Bitcoin. It allows the users to earn Bitcoins.
The STX token is the exclusive token that is used by the Stacks Blockchain. The activities that take place on the network have to rely on the STX tokens. These tokens mainly promote the implementation of smart contracts on the network of Stacks.
The token works as a tool to establish new smart contracts with the blockchain. It is further used to process the transactions such as receiving rewards and making payments. The token exactly follows the same trail as the blockchain network.
It has got the attention of many significant users who are interested in Clarity smart contracts. The token is also available for making business transactions a many legal and leading cryptocurrency exchange companies.
How does Stacks work?
The process in which Stacks(STX) depends on the association of two different parties, stackers and miners. This communication is regulated by a special consensus mechanism known as the Proof of Transfer(PoX).
It might be a little surprising that in the Stacks blockchain, there is nothing actually to mine for the miners. In place of that, they exchange BTC, which has already been mined by the Bitcoin blockchain, and put it as a commitment to get a chance to earn STX coins. The way it works is governed by the rule set makes for itself.
What is important to know about this is that the user identity is stored by the Stacks blockchain when they mine the blocks. They also store the transactional metadata and later use it to interact with the applications in the ecosystem of Stacks.
As this is connected t Bitcoin, the changes that are made to the Stacks wallet or Stacks IDs can be verified by the use of the Bitcoin blockchain. And this is applicable for stocks smart contracts as well, which are written through a unique coding language that has been tested after development by Algorand for Stacks.
What makes stacks stand out?
If we look into there, this is a completely innovative concept. If we look from the beginning, the way it was developed is unique. Unlike any other crypto project, this one was developed through a long process of almost eight years before it came to process.
The team used a lot of this time to get the concept through a process of robust peer-view through which academics at Stanford and Princeton went through it thoroughly and brought out all the potential weaknesses it could possibly have.
Stacks look after the programs that make it work for Bitcoin work and try to extend the functionality further to what it was thought to be possible, but there is a catch. All this would be done without changing the original blockchain.
It has a lightweight architecture and stores data by outsourcing providers for commercial cloud storage. Apart from all of these, it has been backed by the US government. They got funding of millions of dollars for the development.
Is STX Crypto A Good Investment?
If we judge it through the direction in which Stacks is heading, then investing in STX Crypto would be a good decision. In the last seven days, stacks have been showing bearish signals as the coin has dropped by 3.46%. Because of this, it is expected that in the next few weeks, it will make some recovery as the investors would like to take some advantage of this dip to buy STX.
While making any kind of price prediction for Stacks(STX), it is best to remember that the cryptocurrency market is extremely volatile, which makes it difficult to predict the price accurately for even the next few hours, and it is even harder to predict it for a longer range.
If you have any plans to invest in cryptocurrency, then it is best to do your own research before you dive into it directly. Take a look at the recent market trends, look at the latest news, and do some fundamental and technical analysis.
It is absolutely non–negotiable to take an expert opinion before making any final decision. The part performances have nothing to do with future returns and do not trade with the money which you can’t afford to lose.