Stacks, formerly known as Blockstack, an open source network for building decentralized applications, has an ambitious vision of bringing smart contracts and decentralized finance to the Bitcoin (BTC) network.
On Thursday, the developer community celebrated the launch of Stacks 2.0, a linking tool that allows developers to use Bitcoin.
Stacks 2.0 is positioned as a top-notch blockchain with its own bridge to Bitcoin. The toolbox supports Clarity, a generic open source protocol supported by Blockstack and Algorand.
From an industry perspective, the release of Stacks 2.0 is important for several reasons. On the one hand, it extends Bitcoin’s scripting language, allowing developers to build smart contracts and other innovative tools on top of the blockchain. By offering Bitcoin more examples of utility, Stacks 2.0 can weaken the value proposition of competing networks. This could secure Bitcoin’s already dominant position as the largest blockchain and cryptocurrency in the world.
Munib Ali, co-founder of Stacks and CEO of Hiro PBC, told Cointelegraph that improving the Bitcoin network doesn’t necessarily mean the end of other smart contract platforms, but rather “provides more choices.”
“Like everyone else, different tools have different goals,” he said. “Those with specific goals are more likely to choose Bitcoin, while those with different goals, or who operate in a different way or in a different environment, may choose others.”
Blockstack told Cointelegraph that it marks the launch with a virtual one-day event hosted by multiple industry partners including Foundry, OKCoin, Staked, Blockchain.com, Blockfolio, Floating Point Group, and Blockdaemon.
“The launch of Stacks 2.0 represents a future that many have never thought of, a future in which people can rely on Bitcoin and bring their innovative ideas to the Bitcoin network to their full potential.”
Stacks 2.0 comes after months of testing and research focused on Proof of Transfer, or PoX, a new consensus mechanism for the protocol. As a new mining system, PoX uses the Proof of Work concept to create a new blockchain tied to the security of Bitcoin.
Ali said PoX “could bolster the Bitcoin economy and literally secure the future of the Internet with the Bitcoin blockchain.”
Stacks 2.0 is trying to bring Bitcoin full circle. As the most important cryptocurrency, Bitcoin has a market value of $ 700 billion, which depends almost entirely on the characteristics of the value store. Along the way, countless projects have been launched to fill the noticeable void left by Bitcoin, namely smart contracts, DApps, and most recently DeFi.
Blockstack believes the innovation could help revive the hundreds of billions locked in Bitcoin passive capital:
“From now on, this huge amount of liquidity can be used to create native Bitcoin DeFi applications based on Bitcoin security and the (Clarity) language, designed to be predictable and secure, which is an advantage over today’s DeFi tools.”
Ali explained that most of the capital on the Bitcoin network “is only in cold wallets or in warehouses.” On networks like Ethereum, capital is running, especially in DeFi. he added:
“We believe the tools available in Stacks 2.0 will allow developers to create more things that people can use with the capital they hold in BTC and are reluctant to move it around to do so.”
While Bitcoin has established itself as a digital gold, Stacks 2.0’s vision is to provide more of the benefits of the original cryptocurrency, which can broaden its usability beyond just saving.