User Owned Internet — Stacks enabling decentralized apps and smart contracts on bitcoin.
What is Stacks
Stacks is an open-source network of decentralized apps and smart contracts built on Bitcoin. Stacks explores and harness the full Bitcoin potential as a programmable base layer and inherits all its powers to build a better internet on bitcoin. The Stacks is a layer-1 blockchain that connects to Bitcoin for security and enables decentralized apps and predictable smart contracts. Stacks achieves this by implementing Proof of transfer (PoX) mining that anchors to Bitcoin security.
With PoX there is no need to modify Bitcoin to enable smart contracts and apps around it. Stacks uses proof of transfer(POX) to cater for the fundamental problems associated with proof of Stake such as like bootstrapping a new node. As Proof of Transfer (PoX) is the first consensus algorithm between two blockchains. Specifically Stacks present an implementation of PoX by using Bitcoin as the base chain and Stacks as the connected chain.
What makes stacks even cooler is that the Stacks STX holders can participate in consensus and earn BTC rewards by participating in a process called Stacking. To participate, users lock their STX for a reward cycle (approx. two weeks), run or support a full node, and send useful information on the network as STX transactions. The STX holders who actively participate in Stacking earn the Bitcoin rewards of that cycle. Unlike proof of stake, there is no risk of slashing (economic penalties by protocol) for STX holders. You can get more insights on in the video below or click here to go to the official stacks site Stacks
Why Stacks choose to build on blockchain
Bitcoin blockchain network is the strongest , largest and most powerful network in the space in terms of security and hash power. This benefits stacks with a secure and robust settlement layer.
Arnold
March 2021
