Stacks

What is Stacks (STX)?

• Layer-1 blockchain enhancing Bitcoin with dApps and smart contracts.

• Uses Proof of Transfer (PoX) for consensus, rewarding STX holders with BTC.

Tokenomics

• Total supply capped at 1.82 billion STX.

• Circulating supply: ~1.44 billion STX.

• Distribution for investors, founders, Stacks Foundation, and ecosystem treasury.

• Halving schedule similar to Bitcoin.

Market Data

As of today #{today’s date}, the price of Stacks is ₹50.69 INR or 0.584 USD, with a 24-hour trading volume of 18114233.25 USD. The market capitalisation for Stacks is 885330217.66USD. The circulating supply is 1522000543.93 Stacks, with the total supply also being 1521994543.93 Stacks.

Pros and Cons

Pros:

• It is tightly integrated with Bitcoin, leveraging its security.

• Enables smart contracts and dApps on Bitcoin.

• STX holders can earn BTC through Stacking.

• Regulated and SEC-qualified token offering.

Cons:

• Faces competition from other smart contract platforms.

• It is dependent on Bitcoin’s blockchain, which may limit scalability compared to standalone blockchains.

Why Should You Invest in the Coin?

• Exposure to Bitcoin-based dApps/smart contracts ecosystem.

• Earning BTC through Stacking for passive income.

• Regulatory clarity and SEC qualification are security features.

USP of the Coin

• Extends Bitcoin functionality for smart contracts/dApps without changes to Bitcoin.

• PoX consensus rewards STX holders with BTC.

Problem the Coin is Solving

• Adds smart contract functionality to Bitcoin, enabling decentralised applications.

• Maintains Bitcoin network's security and decentralisation.

Founder and Team Background

• Co-founded by Muneeb Ali and Ryan Shea, Princeton University computer science graduates.

• Attracted notable investors and a strong development team.

ICO Price

• SEC-qualified offering in 2019 at $0.30 per token.

• Varied cost basis for early investors from earlier sales.

Risks Associated in Investing in the Coin

• Regulatory changes, competition from other blockchains.

• Reliance on Bitcoin’s blockchain for security/functionality.

• Market volatility, liquidity considerations.

Whitepaper Insights

The Stacks whitepaper outlines the technical and philosophical framework for extending Bitcoin’s utility beyond a pure digital currency into a foundational layer for decentralised applications and smart contracts. At its core, Stacks introduces a novel consensus mechanism, Proof of Transfer (PoX), which anchors the security and capital of Bitcoin to enable a new level of functionality without compromising on decentralisation or security.

PoX is a groundbreaking consensus mechanism that allows Stacks to leverage Bitcoin’s proof-of-work (PoW) consensus for its block creation. This is achieved by enabling STX miners to participate in the network by “transferring” Bitcoin rather than expending energy on additional PoW. This process not only recycles the energy already spent on securing Bitcoin but also directly ties the security and fate of the Stacks network to that of Bitcoin.

Stacking, a key component of the PoX mechanism, allows STX holders to lock up a portion of their tokens to support network consensus. In return, Stackers receive rewards in Bitcoin, creating a direct financial bridge between the two networks. This innovative approach incentivises participation and security, fostering a symbiotic relationship between Stacks and Bitcoin.

The whitepaper also introduces Clarity, a smart contract language explicitly designed for Stacks. Clarity is a decidable language, meaning that the outcomes of contracts are predictable and transparent, reducing the risk of bugs and vulnerabilities. This is a significant departure from the Turing-complete languages used in other smart contract platforms, which can be unpredictable and prone to exploits. Furthermore, the whitepaper discusses the architectural design of the Stacks blockchain, which is built on top of Bitcoin. This design allows for creating decentralised applications that can interact with Bitcoin’s state, enabling use cases such as decentralised finance (DeFi) applications, non-fungible tokens (NFTs), and more, all secured by the most robust blockchain. The Stacks ecosystem is governed by a decentralised community of developers, miners, and users. The governance model is designed to be open and inclusive, allowing for continuous improvement and adaptation of the network. The Stacks Foundation, a non-profit organisation, is key in supporting the ecosystem’s growth and development.

In conclusion, the Stacks whitepaper presents a compelling vision for a decentralised internet built on the security and capital of Bitcoin. By introducing innovative mechanisms like PoX and Clarity, Stacks aims to unlock the full potential of Bitcoin as a platform for innovation while maintaining the principles of decentralisation and security that are foundational to the blockchain space.