The Stacks 2.0 blockchain features STX as its native cryptocurrency coin that is priced in Bitcoin (BTC) and gives BTC rewards. The Stacks coin functions as the facilitator in the payment of transactions and executing smart contracts using the Clarity programming language. The token benefits from the Proof of Transfer consensus mechanism where holders of the Stacks token participate in consensus and earn Bitcoin rewards for securing the network in a process known as Stacking. The token also utilizes the consensus mechanism to facilitate the support of smart contracts, dApps, and the creation of virtual assets that are easily transferrable.
A Bit About Stacks
Blockstack PBC, currently Hiro Systems PBC, launched Stacks after Muneeb Ali and Ryan Shea established the company. The token powers up the Stacks 2.0 blockchain and facilitates smart contracts and decentralized applications (DApps) to Bitcoin without changing its security and scalability. The decentralized applications are open and modular to assist developers to build upon each other's apps to produce attributes not attainable on a regular app. The token also processes transactions and registers new digital assets on the Stacks blockchain. The STX token facilitates connection with the Bitcoin blockchain using the Proof of Transfer(PoX) consensus mechanism where miners pay BTC to mint new STX tokens. Holders can also stack their coins to earn a Bitcoin token as a reward. The token utilizes the Clarity Smart Contract programming language as a secure and easy to build due to its unambiguous syntax.
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STX is the Stacks protocol’s native utility token. Holders of the Stacks token can execute Clarity Smart Contracts to develop and run dApps on the Stacks blockchains and bring them to Bitcoin without changing any of the unique features of security and scalability that make it powerful. The token is utilized in connecting the Stacks blockchain to the Bitcoin blockchain through the Proof of Transfer (PoX) consensus mechanism. Miners pay in Bitcoin to mint new Stacks (STX) tokens originated from transaction fees alongside fees from executing smart contracts. This incentivises the miners to maintain and update the state of the network.
Utility of Stacks?
Holders of the Stacks token can participate in the consensus of the network by locking their STX tokens in a staking contract, running or supporting a full node, or sending useful information over this network as the coin’s transactions. The holders earn BTC in a two-week-long reward cycle as a reward for these actions. Stacks Coin facilitates these transactions within the Stacks network and pays for fees upon deployment of a smart contract and when users execute a value transfer transaction.
The coin is also used in Stacking. It involves locking STX as a secure way of earning Bitcoin without investing in expensive mining rigs or leveraging risky third-party DeFi products. Stacking entitles the STX holders to a portion of the Bitcoin rewards that are created when miners make BTC transfers as part of the mining process. These holders can participate in the governance of the network.
The coin is also used to power the Stacks ecosystem of DeFi apps, NFT marketplaces, and Liquidity Pools. These coins can be used with DeFi to save, lend or borrow.
Stacks Price details
Advantages of Stacks+ Works with an efficient PoX consensus mechanism and rewards all participants.
+ Lets users earn Bitcoin by actively participating in the consensus.
+ SRX turns Bitcoin capital into actively deployed capital.
+ It facilitates more applications and smart contracts to the Bitcoin ecosystem.
+ The token is available in several crypto exchanges.
Disadvantages- Several challenges with its synchronizations between ledgers.
- Low throughput and speed of micro blocks.
- Limited advanced Clarity language features when using the token.
- There are no auctions for block space using Stacks.
- STX faces stiff competition with other coins.
Costs▪ Rated at 7.9/10
When it comes to the execution of Clarity contracts on the network, the users need to pay STX as fuel (gas fees), which is the fee that executes the exchange contract on each user interaction. Various factors influence the price action and fees of the coin, for instance, project news and developments to the flow of assets on exchanges, public sentiment, and emerging trends in the wider cryptocurrency sphere and global economy. The demand for these coins rises with the growing number of users who can pay fees and burn tokens to create smart contracts.
The withdrawal fee of STX coins is dependent on the exchange you use while deposits are free.
Reputation and Buzz▪ Reputation rated at 8.5/10
▪ Buzz rated at 8/10
Users of the coin are impressed with the token's role in facilitating smart contracts and dApps to Bitcoin. This utility has caused several exchanges to support the token and gain a massive following. Online forums commend the token's ambition for its supported dApps, developers can build upon each other's apps. Their vision to revolutionize the use case for the biggest and most powerful blockchain globally, Bitcoin, itself shows that it is bold and ambitious.
With the current market, there is skepticism on whether traders will still be willing to exchange BTC for a chance to mine the coins. Despite this, several forums are excited about the potential of the Stacks token with many watching closely.
What makes Stacks unique?
It connects directly with the Bitcoin blockchain through its proof-of-transfer (PoX) consensus mechanism that has miners pay in BTC to mint new coins.
Which cryptocurrency exchanges facilitate buying Stacks Coins?
You can currently access the token from the following crypto exchanges:
Which programming language does the coin use?
It uses a new smart contract programming language known as Clarity which is secure and easy to build due to its unambiguous syntax.
Why do we need a new cryptocurrency (STX) for Bitcoin layer technology?
It secures the global ledger of the additional Bitcoin layer. Without mining incentives such as block subsidies, you cannot secure the global ledger.
How many STX Coins are there in circulation?
Currently, there are 1,327,753,308 tokens in circulation.
History of Stacks
2019: Launched on 19th October 2019.
2020: In Q4 2020, it switched to Proof of Transfer consensus mechanism.