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What is Stacks coin (STX) and how does it work?

by Financial Economy

Stacks is a layer-1 blockchain solution designed to bring smart contracts and decentralized applications (DApps) to Bitcoin (BTC). These smart contracts bring none of the features that make Bitcoin so powerful, including its security and stability, unchanged. Detailed information about what is Stacks coin STX and how does it work, how to buy it, comments about it, etc. is in the continuation of the article. You can browse here for information about Sushiswap (SUSHI).

What is Stacks coin (STX) and how does it work?

The Stacks project is a platform designed as the new internet for decentralized applications, enabling next-generation applications where developers and users can interact fairly and securely. Stacks was founded in 2013 by Muneeb Ali and Ryan Shea. The company’s headquarters is in New York.

Led by some of the world’s leading blockchain experts, Stacks allows users to have their own data, which they can add from application to application in the ecosystem, with Blockstack ID, which eliminates the need for password-based login.

The platform is powered by the Stacks token (STX), which is used for fueling the execution of smart contracts, processing transactions and registering new digital assets on the Stacks 2.0 blockchain. The platform was formerly known as Blockstack, but was rebranded to Stacks in Q4 2020 in order to “separate the ecosystem and open source project from Blockstack PBC” — the company that built the original protocols. The mainnet for Stacks 2.0 launched in January 2021.

Stacks takes what makes Bitcoin so powerful and expands it with additional functionality without the need to fork or modify the original Bitcoin blockchain. It does this by connecting directly to the Bitcoin blockchain via the proof-of-transfer (PoX) consensus mechanism, which allows miners to pay in BTC for minting new Stacks (STX) tokens. Moreover, STX token holders can stack (not stake) their tokens to earn Bitcoin as rewards.

As of today (22.06.2021), 1 STX value is around 0.57 dollars. The total supply of Stacks in the market is around 1.352.464.600 STX. Stacks coin (STX) can be purchased on trusted and well- known cryptocurrency exchanges.

For information about crypto currency: https://en.wikipedia.org/wiki/Cryptocurrency

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