Bitcoin is the first cryptocurrency and the one that has been the most successful because of the features it offers. However, there are still some shortcomings that are being addressed. One of the main limitations of the Bitcoin network is scalability issues. This is why Stacks (STX) appears, a blockchain project that aims to solve the scalability problems that Bitcoin has.
Stacks is a platform that facilitates the use of smart contracts and decentralized applications on the network. It generates its power from Bitcoin, as it depends on it for the security and execution of transactions.
In other words, the Bitcoin network acts as a security layer for smart contracts executed on the Stack Blockchain. This is made possible by the Proof-of-Transfer mechanism adopted by the platform.
This mechanism is the first consensus mechanism that uses two blockchains, allowing those cryptocurrencies that have already been mined not to be burned, as a result it secures the new blockchain.
This mechanism allows network participants to receive rewards and transaction payments in stable cryptocurrencies. This gives them the opportunity to participate in the new blockchain at the same time. On the other hand, since the network is integrated with the existing blockchain, it uses a secure blockchain to guarantee new chains without requiring new Proof-of-Work chains.
The 3 main advantages of Stacks
1. Members of the DeFi space can enjoy the extended features of Bitcoin while executing smart contracts.
2. The Stacks blockchain offers users the advantage of enjoying the combined features of two independent blockchains on every transaction.
3. Some reward programs offered by the network are usually offered with Bitcoin. Members of the Stacks blockchain have the opportunity to earn rewards in Bitcoin instead of any other token that forces them to subsequently convert it into Bitcoin.
Conclusion of Stacks (STX)
The incredible functionality of Stack’s blockchain makes it possible to predict a triumphant future for this network. It offers users the possibility to earn BTC by participating in the network, and it is a very attractive feature of this network.
Stacks (STX) has unique features that allow users the benefits of mixing smart contracts with Bitcoin functionality, Stacks’ services will promote the adoption and use of Bitcoin in the cryptocurrency industry.