Stacks (STX) - a platform and cryptocurrency that will allow Bitcoin to enter the NFT

Decentralized Finance (DeFi) of the NFT were topics from the beginning, of which z Bitcoin could not connect. The code of the most famous and largest cryptocurrency in the world was too ... outdated. And then Stacks appeared on the horizon to solve the advanced problem smart contracts operating on Bitcoin. Everything works great so far and the price of the Stacks native token - STX - increased by 525,94% during the year.

We are continuing the cycle of the Forex Club portal in which we analyze and describe the largest, highest-valued, most interesting, most developing, advanced and also the most controversial cryptocurrency projects around the world. Today it's time for Stacks - blockchainthat is to make it "Good old Bitcoin" it will not be so old anymore and you will be able to use it with all the benefits that blockchain technology gives us.

How to introduce smart contracts to Bitcoin?

Until now, the Bitcoin code did not allow any smart contracts to be placed on this blockchain, let alone creating an NFT. And it still doesn't, but blockchain Stacks somehow takes advantage of the security provided by Proof of Work BTC. It does not change the Bitcoin code in any way, but introduces smart contracts into it, which are based on the security layer of BTC, using consensus Proof of Transfer (PoX) that runs between two blockchains. Therefore, decentralized applications are created alongside BTC, but they are completely compatible with it.

How does Stacks work?

Stacks also has its own programming language - Clarity - which allows smart contracts to mimic the logic of Bitcoin's blockchain. Stacks blocks are created even at the same time intervals as BTC, i.e. every 10 minutes, but due to the price of Bitcoin, the so-called. microblocks, allowing for greater scalability. Thanks to this, the applications are the same to use as on other platforms. The principle of their operation and the main assumptions do not differ. However, they are based on the native Stacks token - STX. 

To mine more STX blocks, however, you need to pay a fee in BTC. The reverse is true when staking the STX cryptocurrency - you get BTC that the miners paid in earlier. This solution is called Proof of Transfer and is somewhat similar to the previous Proof of Burn implementations in which miners burn the underlying cryptocurrency. In Proof of Transfer, BTC is not burned, which is left as chain security, because miners send it to other network participants (stacking).

As a result, longer and longer blocks are formed, which are more and more difficult to "counterfeit". Fraud online is therefore virtually impossible. All STX blocks that will be excavated and approved are therefore at Bitcoin security level. 

All thanks to the fact that STX miners have to send two transactions of equal value to two different addresses. Due to the fact that the addresses are assigned randomly, there is no possibility of fraud. Especially that during each cycle that contains 2. blocks, there can be only 4 thousand. prize slots.

Cryptocurrency Quote Stacks - STX

As of December 28, 2021, 1 tokens were in circulation, out of the target 290 tokens. They can be traded on 13 cryptocurrency exchanges from all over the world, including the most popular of them - Binance. Each of them is valued at $ 2,41, which translates into a market cap of more than $ 3,1 billion. The peak of trading was on December 1, 2021, when each STX was paid $ 3,25.