The blockchain project says it makes Bitcoin in a programmable way that has never been there before – so that apps and smart contracts can be brought into the network.
Stacks (formerly known as Blockstack) aims to position BTC as the foundation for a better user-owned internet.
Those behind this ecosystem claim that the Internet has been disrupted and the scene is dominated by tech giants.
Stacks are a Tier 1 blockchain that uses the Bitcoin infrastructure as a secure server. Smart contracts and applications can be activated without much change, with “minimal transaction overhead” on the network.
To support batch scalability, developers claim that thousands of transactions result in a single hash, and small patterns result in fast confirmations. Most importantly, this means that the stack can be scaled independently of bitcoins.
How does technology work?
While the Bitcoin blockchain is based on an energy-intensive consensus mechanism to ensure safety at work, Stacks uses a new alternative called Proof of Transfer that reuses energy already used in the business chain, in this case Bitcoin. They are called PoX, and they claim to be the first consensus algorithm among blockchains, and it aims to “eliminate the choice between flexibility and security.”
To eliminate the risks of unexpected execution of smart contracts, which have become a common problem, Stacks 2.0 introduced a new programming language called Clarity. This open source project, developed in collaboration with Algorand, aims to provide developers with a secure way to enter into complex agreements.
Clarity makes it very difficult for smart contract bugs to appear and allows developers to write logic directly about the Bitcoin case. We believe that embedding smart contracts directly into Bitcoin can make BTC more valuable, as it can be used productively and not as a passive asset, according to the official Stacks documentation.
More info from Stacks here
Stacks 2.0 was developed with the fact that “Bitcoin is the most valuable and secure blockchain in the world” is the largest cryptocurrency in the world, which has gained increasing recognition among institutional investors and media organizations.
Over time, the project believes Bitcoin could become a new source of liquidity – in addition to DeFi’s record capital supply – and eat up a market that has been dominated by Ethereum so far.
The team added, “People are trying to bring BTC to Ethereum as we go the other way, bringing Ethereum-like functionality to Bitcoin in a more secure and scalable way. With the help of stacks, we can convert Bitcoin from passive capital to active capital. ”
In addition to opening new bitcoin cases, Stacks noted that the ecosystem is also developing – to date, more than 400 DApps have been created on the network. The latest figures show that at least 300,000 people have STX codes worldwide.
Stacking versus buffering
While ‘staking’ has become a buzzword in the crypto community in recent months – in part due to the Ethereum blockchain shifting to proof of effort – Stacks says it has come up with a Bitcoin-focused alternative: stacking.
Heap creation involves locking STX on the network and sending periodic transactions to help keep things safe. Stacks says it offers regular bitcoin bonuses in return – adding that this approach helps crypto enthusiasts avoid the need for expensive mining setups and DeFi products built on insecure smart contracts.
The fundamental difference with the heap is that user funds cannot be reduced based on network activity. Users’ money never leaves their wallet and no special devices are required to participate.
With launch in 2021, Stacks aims to build the best Bitcoin-based financial system that allows hundreds of billions of dollars of capital to be programmed.