Stacks

Stacks functions as a Bitcoin Layer dedicated to smart contracts, allowing for the use of Bitcoin as an asset and for settling transactions on the Bitcoin blockchain.

Bitcoin stands as the most significant, valuable, and enduring decentralized asset. The Stacks layer unleashes $500B worth of BTC capital by utilizing the Bitcoin L1 for settling decentralized applications.

With its Proof of Transfer consensus and the Clarity language, Stacks has full insight into the Bitcoin state, enabling it to access Bitcoin data at any moment.

All transactions occurring on the Stacks layer are naturally hashed and finalized on the Bitcoin L1. Stacks blocks enjoy security backed by Bitcoin's entire hashpower. To alter the order of Stacks blocks or transactions, an attacker would need to reorganize Bitcoin.

The inception of the project dates back to 2017 when Muneeb, after completing his PhD—where he outlined the groundwork for the Stacks layer on Bitcoin—released the initial whitepaper and secured $50M in funding. Prior to this, the original team was involved in creating protocols and applications directly on Bitcoin L1 before channeling their efforts into Stacks in 2017. Some early ideas of the project are captured in a TEDx talk.

In 2019, there was a pioneering SEC-qualified token offering made accessible to the general public, including the US, as reported in a WSJ article. All materials related to the offering were fully transparent, covering details about the project, company, and involved individuals.

From 2018 to 2020, the team focused intensely on developing the Stacks infrastructure—a programming layer for Bitcoin that operates akin to a blockchain with cross-chain consensus with Bitcoin—and the Clarity language, a secure programming language. Some technical resources can be found here.

* Stacks introduces several innovative features as a Bitcoin layer for smart contracts, making it stand out:

* The forthcoming Stacks release will be reinforced by Bitcoin's total hash power, ensuring Bitcoin finality.

* Stacks plans to introduce a unique 1:1 backed Bitcoin asset, known as sBTC, which can be moved in and out of the Stacks layer in a decentralized manner.

* The sBTC asset allows Stacks smart contracts to interact with Bitcoin.

* It facilitates atomic BTC swaps and enables ownership of assets by BTC addresses.

* Stacks employs the Clarity programming language, known for enabling safe, predictable contracts.

* With comprehensive understanding of the Bitcoin state via Proof of Transfer and Clarity, Stacks can access Bitcoin data whenever required.

* Stacks also offers a scalable layer that allows for rapid transactions, which are ultimately settled on Bitcoin.

The Stacks cryptocurrency is set to reach an approximate supply of 1,818 million STX by the year 2050. The Stacks ecosystem comprises independent organizations, developers, and community members striving to create a user-owned internet on Bitcoin. No single entity controls more than 10% of the circulating STX supply, and typically, even early investors or organizations hold less than 5%. These figures are self-reported and gathered from on-chain data, naturally updating over time.

Stacks relies on the Bitcoin blockchain as its foundational layer. As a blockchain based on Proof of Work (PoW), Bitcoin enlists thousands of miners and nodes to shield the network from attacks, making it both computationally and financially challenging to compromise the network.

Additionally, Stacks brings forth its own consensus mechanism, known as proof-of-transfer (PoX), which represents an innovative mining process where users transfer BTC to mine STX, thereby enhancing the security of the Stacks blockchain with BTC.

You can trade STX on several major exchange platforms, including Binance, Coinbase, Kraken, Upbit, and KuCoin. For a full list of trading pairs and supported platforms, check out the markets section.

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