Stacks is a layer-1 blockchain solution that is designed to bring smart contracts and decentralized applications (DApps) to Bitcoin (BTC). These smart contracts are brought to Bitcoin without changing any of the features that make it so powerful — including its security and stability.
These DApps are open and modular, meaning developers can build on top of each other’s apps to produce features that are simply not possible in a regular app. Since Stacks uses Bitcoin as a base layer, everything that happens on the network is settled on the most widely used arguably the most secure blockchain in operation — Bitcoin.
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.
As of February 2023, Stacks (STX) can be stored in hardware wallets that support the Stacks blockchain. These hardware wallets include:
Trezor Model T: The Trezor Model T is a popular hardware wallet that supports Stacks (STX) and allows users to store their private keys offline for added security.
Ledger Nano S: The Ledger Nano S is a compact hardware wallet that also supports Stacks (STX) and is easy to use for beginners.
Ledger Nano X: The Ledger Nano X is a more advanced version of the Ledger Nano S and also supports Stacks (STX). It comes with additional features, including Bluetooth connectivity and a larger screen.
Blockstack Connect: Blockstack Connect is a software wallet that allows users to store their STX tokens securely in their browser. It can be used with popular browsers like Google Chrome and Firefox.
Hardware wallets are generally considered the most secure way to store cryptocurrencies like Stacks (STX) because they keep the private keys offline and away from potential hackers. When using a hardware wallet, it’s important to follow the manufacturer’s instructions carefully to ensure proper setup and use.
The best option for storing any cryptocurrency would be to use a hardware wallet. These are pieces of hardware that store the private key to your coins offline.
Today, there are two leading hardware manufacturers to choose from – Ledger and TREZOR. Both companies have different models of hardware wallets that will get the job done.
If you want deeper insights on specific models, you can read my Ledger Nano X review or my TREZOR Model T review.
As of February 2023, Stacks (STX) can be stored in software wallets that support the Stacks blockchain. These software wallets include:
Hiro Wallet: Hiro Wallet is secure and user-friendly wallet for Stacks (STX) that can be used on both desktop and mobile devices. It supports features like 2-factor authentication and easy recovery in case of lost access.
Blockstack Connect: Blockstack Connect is a browser-based wallet for Stacks (STX) that can be accessed from popular browsers like Google Chrome and Firefox. It uses advanced security measures like encryption and multi-signature transactions.
Stacks Wallet: Stacks Wallet is the official wallet for Stacks (STX) developed by the Stacks Foundation. It offers a simple and secure interface for storing and managing STX tokens.
Atomic Wallet: Atomic Wallet is a multi-currency wallet that supports Stacks (STX) and offers features like exchange, staking, and buying cryptocurrencies with a credit card.
When choosing a software wallet, it’s important to choose a reputable and well-reviewed option that offers the security features and convenience you need. Be sure to follow best practices for securing your wallet, like using 2-factor authentication, creating strong passwords, and keeping your recovery phrase safe.
Hardware wallets cost money, so if you’re not sure how serious you are about cryptocurrencies and just want to get a taste of what they feel like, perhaps you would be better off starting with a software wallet.
A software wallet is a free program that lets you store your coins on your computer or mobile phone.
The easiest Stacks software wallets to get started with are undoubtedly Exodus, AtomicWallet and Guarda . All wallets are very intuitive. Exodus, Atomic Wallet and Guarda is available on desktop for Windows, Mac and Linux, as well as on mobile for both iOS and Android. If you want more information you can read my Exodus, AtomicWallet and Guarda review.
Once you decide on an exchange, open an account and buy your Stacks. Make sure to withdraw the Stacks from the exchange to your personal wallet.
Never leave coins on an exchange, as you risk losing them all if that exchange gets hacked or shuts down (which has happened in the past).
Stacks was initially funded by a range of prominent venture capital funds, including Y Combinator, Digital Currency Group and Winklevoss Capital. It was developed by Blockstack PBC, which has its headquarters in New York.
Blockstack PBC now operates under the name Hiro Systems PBC and joins a wide range of companies building on Stacks’ platform.
Blockstack PBC was founded by Muneeb Ali and Ryan Shea. After graduating from Princeton University with an MA and PhD in computer science, Muneeb Ali co-founded Stacks in 2013, and still works with the platform today as the CEO of Hiro Systems PBC.
The second co-founder of the platform, Ryan Shea, also served co-CEO between 2013 and 2018, before disembarking from the project to pursue other ventures — including co-founding a new tech startup that is currently operating in stealth. Prior to his role at Stacks, Shea worked as a software engineer.
Stacks (STX) is a unique blockchain project that is designed to bring smart contracts and decentralized applications (dApps) to the Bitcoin (BTC) network. Here are some of the key features that make Stacks unique:
Clarity smart contract language: Stacks uses a new smart contract language called Clarity, which is designed to be more secure, predictable, and auditable than other smart contract languages like Solidity.
Proof-of-Transfer (PoX) consensus mechanism: Stacks uses a unique consensus mechanism called Proof-of-Transfer (PoX), which leverages the security of the Bitcoin network to secure Stacks transactions. This allows Stacks to inherit the security and stability of the Bitcoin network while still enabling advanced smart contract functionality.
User-owned data: With Stacks, users can own and control their own data, rather than relying on centralized platforms to store and manage their information.
Decentralized apps (dApps): Stacks enables developers to build decentralized apps (dApps) that can leverage the security and stability of the Bitcoin network. This allows for the creation of a wide range of decentralized applications and use cases.
Overall, Stacks is unique in its approach to bringing advanced smart contract functionality to the Bitcoin network while maintaining a focus on security, decentralization, and user ownership of data.
According to the recently revamped economic policy launched with Stacks 2.0, the supply of the newly unlocked STX in circulation will be reduced by around 10% between now and 2020 compared to the original schedule.
In total, around 1.82 billion STX are expected to be in circulation by 2050, compared to around 739.7 million in circulation as of January 2021.
As per the Stacks 2.0 whitepaper draft (v0.1), a total of 1,000 STX per block will be released in the first four years, decreasing to 500 STX/block in the subsequent 4 years, 250 STX/block in the next four years, and then 125 STX/block after that in perpetuity.
In total, 6.6% of the initial genesis supply (1.32 billion STX) was allocated to the founder and a further 7.9% to the Stacks team. These are subject to a three year unlock schedule, with tokens next scheduled to unlock in November 2021.
Stacks uses the Bitcoin blockchain as its base layer. As a Proof of Work (PoW)-based blockchain, Bitcoin uses the combined efforts of thousands of miners and nodes to protect the network against attacks by making it computationally and economically unfeasible to subvert the network.
On top of this, Stacks introduces its own consensus model, known as proof-of-transfer (PoX), which is a novel mining mechanism that sees users transfer the base currency (BTC) to mine STX — effectively bootstrapping the security of the Stacks blockchain using BTC.
Stacks (STX) can be bought and sold on a variety of cryptocurrency exchanges. Here are some of the popular exchanges where you can buy Stacks:
Binance: Binance is one of the largest cryptocurrency exchanges in the world, and it offers trading pairs for Stacks with BTC, BUSD, and USDT.
Huobi Global: Huobi Global is another popular exchange that offers trading pairs for Stacks with BTC, USDT, and HUSD.
OKEx: OKEx is a cryptocurrency exchange that offers trading pairs for Stacks with BTC, USDT, and ETH.
Gate.io: Gate.io is a global cryptocurrency exchange that offers trading pairs for Stacks with USDT.
KuCoin: KuCoin is a cryptocurrency exchange that offers trading pairs for Stacks with BTC and USDT.
It’s important to do your own research and choose a reputable exchange that is available in your country and offers the features you are looking for, such as low fees, high liquidity, and a user-friendly interface. It’s also recommended to store your Stacks in a secure hardware wallet for added security.