Stacks, formerly known as Blockstack, is a decentralized network that aims to bring smart contracts and decentralized applications (DApps) to Bitcoin (BTC). The project's primary goal is to extend the functionality of the Bitcoin network without altering its core features, such as its security and stability. Stacks' unique selling proposition lies in its ability to leverage the robustness of Bitcoin's infrastructure while adding the flexibility of smart contracts and DApps. This is achieved through the Stacks blockchain, which operates as a layer-1 solution alongside Bitcoin.
The Stacks token (STX) is integral to the Stacks ecosystem. It serves multiple purposes, including fueling the execution of smart contracts, processing transactions, and registering new digital assets on the Stacks 2.0 blockchain. STX tokens are also used in the Stacks consensus mechanism, where STX holders can participate in the network's 'Stacking' process. By locking up their STX tokens and actively participating in the network's consensus, users can earn Bitcoin rewards.
Stacks has successfully implemented smart contracts and DApps on the Bitcoin network, demonstrating the viability of its layer-1 solution. The STX token is actively traded and used within the Stacks ecosystem. The project continues to contribute to the broader goal of enhancing the functionality of the Bitcoin network, making it a noteworthy player in the crypto space.