Stacks, formerly known as Blockstack, is a Layer 1 blockchain that enables smart contracts, DeFi, NFTs, and dApps for Bitcoin. The Layer 1 solution enhances the Bitcoin base protocol similar to the Lightning network as they act as a “layer” for Bitcoin.
Stacks enables decentralized apps and smart contracts natively integrated with Bitcoin’s security, capital, and stability. The idea behind Stacks is to create a user-owned decentralized internet, thus unleashing Bitcoin. This is the second part of a two-article series, and you can read the first part here.
Stacks $STX coin
$STX is the native currency of the Stacks ecosystem. $STX was distributed to the public via an SEC-qualified token offering in 2019. For the curious reader, the SEC (Securities and Exchange Commission) decides the nature of a digital asset as a security. The Stacks whitepaper was drafted in December 2020, just before the parabolic bull run.
But what is the consensus mechanism of Stacks?
Stacks uses a consensus mechanism called “proof-of-transfer” that allows the users to earn Stacks coins by participating in the consensus process. It is a variation of the “proof-of-stake” consensus process and is more energy efficient than the traditional “proof-of-work.”
In other words, $STX is the fuel that powers the Stacks blockchain and executes smart contracts. It is also used as a gas fee to transfer assets in the network. Stacks holders can also take part in governance and cast their votes on proposals that may be pivotal in determining the direction and development of the ecosystem. The token also functions as a base currency to access and interact with various decentralized applications (dApps) on the Stacks blockchain.
At the time of writing, $STX is trading at $0.24, with 1.35 billion tokens in circulation. However, the maximum number of coins is 1.818 billion, giving Stacks a fully diluted valuation of $436 million. The total market value, or market cap, of STX is $324,893,955.
$STX had an initial price of $0.37 and reached an all-time low on March 13, 2020, at $0.045. The $STX token became a solid performer in the bull run as it reached an all-time high of $3.39 on December 1, 2021.
You can buy $STX from Binance, Upbit, Coinbase Exchange, and DigiFinex.
Stacks STX Wallets
There are several Stacks wallets available. Each of them provides different features. That means users can choose their wallets according to their requirements and preferences.
Hiro Wallet – Hiro is a popular wallet to store your $STX private keys. The wallet is available for the web and desktop. You can get Hiro here.
Hiro’s innovative user interface lets you send, receive, buy, and stake your $STX coins. Hiro also has an integration with Ledger hardware wallets.
Xverse is another feature-rich Stacks wallet. The main attraction is the $BTC rewards you can earn using staking pools. Also, Xverse supports NFTs, which means you can view and trade NFTs in the wallet. The wallet is available for Android, iPhone, and Chrome. Get the Xverse wallet here.
Staking STX to Earn Bitcoin Rewards
Staking is the process of locking crypto assets for a set period to support the operation of a blockchain. In return for staking your crypto, you get rewards, mostly in the same cryptocurrency.
You can stake $STX and earn $BTC through liquidity mining. When you provide liquidity to a particular pool, you receive a share of the transaction fees from the pool. But first, you would need to find a liquidity pool that offers $BTC in exchange for liquidity in $STX.
The earning rate for liquidity mining of $STX can vary with time. It depends on several factors, such as pool supply and the amount of $STX you hold. The overall state of the market can also be a factor in determining the earning rate.
⬆️ For more cryptocurrency news, check out the Altcoin Buzz YouTube channel.
⬆️ Our popular Altcoin Buzz Access group generates tons of alpha for our subscribers. And for a limited time, it’s Free. Click the link and join the conversation today.