Overview:
Stacks token (STX) is the cryptocurrency of the decentralized computing platform stacks ecosystem formerly Blockstack.Blockstack is a project that utilizes the blockchain technology to expand the functionalities of bitcoin by serving as a second layer protocol.Blockstack can improve upon the benefits of bitcoin by offering advanced smart contract capabilities and an entire infrastructure designed to deploy its unique applications.
Key takeaways:-
-Blockstack is a decentralized computing platform that focuses on individual control of online data and identity.
-It is the first token offering qualified by the US securities and Exchange commission(SEC).
-The unique thing about stacks is that it links to Bitcoin and turns bitcoin blockchain into programmable base layer.
Features of Stacks
-It uses a consensus mechanism called “proof of transfer”that recycles bitcoin’s proof-of -work system. Proof of transfer makes stacks highly scalable and decentralized without causing additional environmental impact.
-it makes use of what we call micro blocks to speed up smart contract transactions.
-it has a smart contract language called Clarity. An advantage of clarity over other smart contract languages is that users can set up their own conditions for transactions and aren’t limited to preprogrammed conditions.
**How stacks works:
Stacks works by connecting to Bitcoin and validating transactions through its proof-of-transfer consensus mechanism. Proof of transfer is a variation on another system called proof of burn,so it helps to understand how that works fast.Proof of burn is a system where miners burn their own cryptocurrency to earn the right to validate transactions. By burning more,they can mine more blocks of transactions. To compensate them for their efforts miners receive block rewards paid in the cryptocurrency they are mining. Proof of transfer follow the same vein except miners must transfer their cryptocurrency to other participants in the network Instead of burning them.In Stack's Proof of transfer system, miners transfer their Bitcoin. The protocol randomly selects a winning miner who validates a block of stacks transactions and receives a block reward,which is paid in STX tokens.
STX TOKENOMICS **
STX is a token used to facilitate all activities on the stacks blockchain. According to the Messari data,stacks had a supply of 1.32 billion STX tokens in its initial genesis block.According to data from CoinGecko,almost 1.4billion are currently in circulation. Total supply isn’t capped,moreover about 1.8billion STX tokens are expected to be in circulation by 2050.Since stacks uses the bitcoin technology it has the same halving as bitcoin. Stacks halves every 4years.STX currently trades on Binance,Coinbase,KuCoin and a number of other centralized exchanges.
Applications found on the stack Ecosystem:
Stacks ecosystem encompasses of different apps and tools that are built on it. Some of the applications are:
1.ALEX : This is an open source DeFi protocol modeled on the world’s financial markets.
- Arkadiko: This is an open source protocol that mints a stable coin, generating Bitcoin yield.
- Ballot : This is decentralized polling app for DAO,NFT,DEFI and web 3 projects that puts community members at the center to come to a consensus on important decisions. Ballot helps projects to govern decision making on the platform.
- Block survey:This an app on stacks ecosystem that helps users to own their data,encrypt it in a decentralized private storage.Block survey is also used to protect the privacy of users on the ecosystem thereby creating security.It is also used to create Al survey in a seconds.
- **Boom boxes: **This is an app in stacks ecosystem where users can mint NFTS,get rewards,buy and sell the NFTs.
- Console: This is an online community platform for creators,events and web 3.
- Sigle: This is a secured and open-source writing platform for web 3 content creators, NFT projects, crypto analysts, influencers,moderators,etc.
Other apps found on stacks are
-Dots
-Droplinked
-Force prime
-Gamma
-Gosats
-Heylayer
-Hire vibes
-LNSwap
-OWL Link
-STX 20-
Stacks DAO
-Trade port
-btc.us
-Frens.
Stack as an investment:
Stack is currently trading at $1.79 on KuCoin and Binance. It still has a potential of going more than that especially with this bull run. Looking at the proof of transfer mechanism and also being intertwined with the bitcoin technology, stacks could be is a good investment to diversify your portfolio.
Conclusion:
Being intertwined with bitcoin and how it scales it, is a good factor that it will do well in the long term. Lots of partnerships and projects are currently going on in this ecosystem.
Posted Using InLeo Alpha