What is Stacks? In-depth Analysis of Stacks & STX Token

I. What is Stacks?

Stacks is known as a layer 1 blockchain that allows dApps and smart contracts to be used inadvertently on the Bitcoin network. In order to accomplish this, the team developed a novel consensus mechanism they called Proof of Transfer (PoX), which links the Bitcoin blockchain and Stacks. In this architecture, the security layer is provided by the Bitcoin layer, and the Stacks blockchain houses smart contracts. On the Bitcoin blockchain, elections for leadership take place, and new blocks are added to the Stacks blockchain.

Every time a block is generated on Bitcoin, stacks transactions are automatically finalized. Additionally, Stacks offers the idea of microblocks, which offer confirmations in a matter of seconds. A key area of scalability research is the microblock concept, which suggests that a theoretically faster consensus algorithm, such as PoX, might use microblocks to settle on Bitcoin whenever a new block is mined.

So, the Stacks payment protocol uses Bitcoin. The hashes of the Stacks block history are kept on the Bitcoin blockchain, which also serves as the final authority on truth. The Stacks team has decided to host its website on Bitcoin and use Bitcoin as its payment and security layer. Due to its track record of success in all three categories, the Stacks team decided to use Bitcoin as the payment, security, and top layer. thanks to a track record of excellence across all three categories.


A new language called Clarity is used to create smart contracts and decentralized applications (dApps), and it has the advantage of being predictable without the need for compilers. The application layer, protocol layer, stacks blockchain, and bitcoin system are the project’s four core layers.

II. History of Stacks

Blockstack 2.0 is known as Stacks (STX). Following this release, the project’s name was changed to Stacks.

A number of well-known venture capital firms, including Y Combinator, Digital Currency Group, and Winklevoss Capital, provided initial funding for Stacks. It is created by the New York-based Blockstack PBC. Blockstack PBC presently conducts business as Hiro Systems PBC and has a variety of businesses that are based on Stacks.

Muneeb Ali and Ryan Shea founded Blockstack in 2013 at Princeton University. Ryan holds a bachelor’s degree in mechanical engineering with a minor in computer science, while Muneeb holds a PhD in computer science from Princeton.

Blockstack’s early development was overseen by experts from Stanford and Princeton, much like Cardano. The first four years of Blockstack were nearly totally devoted to research and development, and the project’s initial funding only came at the conclusion of those four years.

This is mostly because Muneeb’s doctoral thesis focused on Blockstack. He aimed to make the internet operate as a peer-to-peer network devoid of middlemen, as it was intended to. By granting users total control over their information and whatever data they produce while interacting with these new online apps and platforms, Blockstack will also preserve users’ privacy.

Blockstack’s 2018 Initial Coin Offering (ICO) was one of the first to be sanctioned by the US Securities and Exchange Commission. The project also gained a lot of attention for its conference attended by speakers including Andreas Antonopoulos and Edward Snowden.

Blockstack gained notoriety in June 2019 for investing in a billboard with the message “Don’t can’t be Evil” directly across from Google’s offices in California. Along with being Google’s official slogan at the time, “Don’t be Evil,” this is also Stacks’ official catchphrase. The Stacks team advises tech behemoths like tech to reconsider whether they are the “evil” at all.

The Stacks development team is currently made up of scientists with PhDs, product designers, engineers, and experts in distributed systems, developing and testing smart contracts, and mining cryptocurrency. community building, developer education, and electronics.

III. Striking Features of Stacks

Stacks is one of the rare projects interested in Bitcoin in an age of other Layer 1 like Ethereum, Solana,etc. Smart Contracts will enable projects to run on the blockchain, managed by code rather than businesses, and open to all users. Decentralized applications are now able to perform tasks that traditional programs cannot. Applications and transactions on Stacks will be as secure as Bitcoin core transactions because all transactions on the platform will be settled in bitcoin. The logic of Bitcoin can be used to create applications for Stacks.

The demand for use cases involving bitcoin is increasing as the world’s attention turns to it, according to The Stacks. As a result, Stacks builds upon Bitcoin rather than replacing it with another Layer 1 that would compete with it. As a result, Stacks can benefit from Bitcoin’s capital, security, and network effects while also growing alongside it.

Stack is a decentralized computing platform that creates an infrastructure for developers to quickly deploy their applications, ignoring the technical specifics. Stack was created with the goal of emphasizing usability, scalability, and user security control while giving users access to and control over their data.

Did you know that Vitalik Buterin developed Ethereum as a solution to the problem that Bitcoin’s ability to enable smart contracts was insufficient? The same may be said of the privacy coins Monero and Zcash, which were developed after discovering that Bitcoin could not handle the amount of privacy they desired.

That is how Stacks was created. Its major goal is to attempt to address the few issues with the Bitcoin ecosystem. It accomplishes this using microblocks, Proof of Transfer, and a brand-new programming language called Clarity.

As the first widely used cryptocurrency, Bitcoin continues to lead the market. However, this coin was available on the market before DeFi and smart contracts.

The creator of Bitcoin, Satoshi Nakamoto, purposely used a restrictive programming language to make it difficult for hackers to insert malicious code unnoticed. The code is great for security but cannot support today’s top crypto features. As such, Stacks’ second layer solution allows developers to take advantage of the best aspects of Bitcoin including its liquidity and security, and be able to create smart contracts on it.

While there aren’t any groundbreaking smart contracts on Bitcoin right now, there are several projects trying to get us as close to that point as possible. Stacks (STX) is one of these projects. However, it is not just another layer 2 scaling solution like Lightning Network. Blockstack brings smart contracts and privacy to Bitcoin by anchoring its blockchain to Bitcoin.

IV. Core Technology of Stacks

The way Stacks works is quite complicated.

  • The Stacks blockchain uses a new consensus mechanism called Proof of Transfer (PoX for short). This mechanism involves two parties, miners and stackers. Miners on the Stacks blockchain must stake their Bitcoin for a chance to mine a block of the STX coin. The stacker will stake their STX tokens to secure the network, and earn the Bitcoins that miners have staked.
  • Stacks consensus form (STX) is more energy efficient and much faster than Bitcoin’s Proof-of-Work system. In addition, anyone can join the network. No special hardware or expensive mining rigs required.
  • Stacks are also considered to be “mirroring” of Bitcoin, as a new Blockstack is created every time a new Bitcoin block is created.
  • Stacks is an open source project that has been moderated by the community. The main benefit of Stacks is that it empowers Dapp developers to create decentralized applications and smart contracts, inheriting all the power of Bitcoin. Developers can leverage aspects like Bitcoin’s liquidity to create a better user experience.
  • Stacks is a two-layer Bitcoin programming solution. One of the core concepts of the platform is that Dapps are deployed on Stacks and solve Bitcoin’s problems on Bitcoin. The introduction of the Clarity programming language helped drive network adoption. Notably, Clarity integrates a familiar web 2.0 user experience for non-technical users.

Blockchain Stacks

The Stacks network has four main layers – the application, the protocol, the Stacks blockchain, and the Bitcoin system.

Stacks blockchain is the glue that holds the entire ecosystem together. The Stacks blockchain itself is a distributed layer where users can deploy smart contracts and create virtual assets.

The interesting aspect here is not the layer 2 chain, but instead it is connected to the Bitcoin supply chain in a 1:1 block ratio. This means whatever happens in the Stacks ecosystem. are all verifiable on the Bitcoin blockchain.

How Do Bitcoin And Stacks Connect?

With PoX, two separate distributed ledgers can be linked, and miners can mine STX tokens by sending BTC. This decentralized platform supports smart contracts, dApps, the development of irrevocable and readily transferable virtual assets, in addition to the novel consensus method.

These digital assets can represent a wide range of use cases, including fundraising, governance, and other business models. Both the generation of fungible and non-fungible tokens are supported by stacks.\

The Clarity programming language, which offers improved security and is a predictable language without the need for a compiler, powers smart contracts and is used by Stacks. Clarity is a leading decentralized platform that is used in Algorand, so developers may be familiar with it.

Protocol Layer

The Stacks protocol layer is where the storage, authentication, financing, and naming services reside. The storage system used in Stacks is named Gaia and it stores application data off-chain without the need for a third-party storage provider.

Gaia uses off-chain cloud systems like Azure to provide applications with rapid data access. The data is still secured with the creator’s private key.

Plus, Stacks uses decentralized validation. This authentication is a way of granting access to apps, with usernames and other details stored in Gaia.

The protocol layer’s financial functionality can support decentralized financial platforms like Uniswap and 1inch. Users of these sites may be able to engage in DeFi lending, swaps, or even more sophisticated DeFi activities like yield farming. The construction of smart contracts using Clarity strengthens this layer even more.

The smart contract programming language, for instance, has the ability to interact directly with the Bitcoin network. Additionally, it has been improved to guard against security gaps and prepare for unforeseen weaknesses.

Stacks is also made with a unique naming service feature called Blockstack naming Service (BNS). While the platform is decentralized, the naming service allows platform users to name human-readable assets, with those assets secured with a combination of public and private keys. 

Clarity Smart Contract

Clarity is a programming language for creating smart contracts and dApps on Stacks. Clarity code is called predictable code because developers can determine what the program will do, how much data it will consume, and how much it will cost the application.

Clarity is preferable to Ethereum’s Solidity language, which does not allow developers to know or predict what a program will do, its data needs, or its costs without actually executing the code in certain conditions.

Clarity is also different from most other programming languages ​​because it is not compiled. Instead, the source code for any smart contract is published and executed directly on the blockchain nodes. Clarity smart contracts also have Bitcoin state visibility, which is important because it allows contract logic to be triggered entirely based on Bitcoin transactions.

V. What is STX Token?

1. Detailed Information about STX

The primary cryptocurrency of the project platform is STX coin, a utility token on the Stacks network. To run Dapps and execute smart contracts, users must possess STX coins. For the right to publish smart contracts to the blockchain in STX, developers must pay a small fee in STX.

Key Metrics STX

  • Token Name: Stacks.
  • Ticker: STX.
  • Blockchain: Stacks.
  • Token Standard: Updating…
  • Contract: Updating…
  • Token Type: Utility.
  • Total Supply: 1,320,000,000 STX.
  • Circulating Supply: 1,052,561,461 STX.

2. STX Allocation

  • 2018 Token Sales: 30%
  • Short-term Treasury: 22%
  • Founder Distribution: 13.6%
  • 2019 Token Sales: 9%
  • Long-term Treasury: 8.3%
  • Equity Investor Distribution: 8.2%
  • Employee Distribution: 5.6%
  • Reg A App Mining: 3%

3. STX Noticeable Milestones


4. Use Cases of STX

Specifically, the STX coin will be used to:

  • Digital asset registration.
  • Pay transaction fees.
  • Executing Clarity Smart Contracts.
  • Stake to become a node to receive BTC and STX rewards.


VI. How to earn & own STX Token?

Users can exchange and sell STX tokens at exchanges such as Binance, OKEx,, KuCoin, CoinEx, Okcoin, etc.

VII. Which Crypto Wallets are suitable for STX Token?

Stacks has an original storage wallet, Hiro, in addition, you can store it on a number of wallets such as: Trust Wallet, Math Wallet, Trezor, Ledger, etc.

VIII. STX Token Recent Developments

STX token release schedule:

IX. Teams, Funds & Partners of STX Token

1. Team

  • Muneeb Ali (CEO and co-founder)

He is currently the CEO and co-founder of Stacks. He holds a PhD from Princeton University in distributed systems, and is also responsible for teaching cloud computing at this school. Besides, he is also a visiting researcher at Stanford University and SICS.

  • Albert Wenger (Management Partner, USV)

He is a managing partner at Union Square Ventures, with experience in leading investments in big names like Etsy (IPO). MongoDB (IPO), Twilio (IPO), Behance (acquired by Adobe) and Firebase (acquired by Google).

  • JP Singh (Princeton Professor)

He has been a lecturer in computer science at Princeton University since 1995. Not only has a PhD from Stanford University, he also has experience working at leading agencies and organizations in infrastructure. and extended applications.

Besides, there are professional advisors with many years of experience such as Michael Freedman, Dave Morin, etc.

In addition to the founders we talked about above, the success of Stacks also comes from the fact that it has a strong team behind it. Some other prominent names include:

  • Zavain Dar: He once led Lux’s investments in Primer, a machine intelligence startup. Previously, he was also an investor at Eric Schmidt’s Innovation Endeavors. In addition, Zavain is also the co-founder of Fountainhop, one of the first hyper-local social networks.
  • Meltem Demirors: She is the Chief Strategy Officer of Coinshare. Before joining CoinShares, Meltem helped build and grow the Digital Currency Group, raised capital from the world’s largest corporations, and managed a portfolio of 120 companies and 4 subsidiaries.

In addition, she is also a founding member and co-chair of the World Economic Forum Cryptocurrency Council and has testified before the House Financial Services Committee on the importance of Bitcoin.

  • Rodolfo Gonzalez: Rodolfo holds an MBA from MIT Sloan’s School of Management, specializing in finance and entrepreneurship. And holds a degree in Marketing from ITESM and International Relations from UNAM Mexico.

2. Investment Funds


3. Partners


X. Where are STX Token information be updated?

Currently, Crypto users can fully consult, research, and analyze information about STX through famous media newspapers such as Nasdaq, Bloomberg, Forbes, AP News, Yahoo!Finance, CoinTelegraph, Coindesk, etc.

These media are constantly updated with useful information, new activities, outstanding events of STX, and all the topics surrounding it. Accordingly, Meta Lion Ventures continuously updates the topic of outstanding projects in Blockchain and hot events organized between Meta Lion & partners.

XI. FAQs about Stacks

  • What STX trading pairs are there?

Currently, on the market, there are trading pairs such as STX/USDT, STX/BTC, STX/ETH, STX/BNB, STX/TRY, etc.

  • Where can STX tokens be stored?

Users can store STX tokens at Stacks Wallets or exchanges that have listed this coin as above.

  • How to get a STX token?

Become app developers to receive corresponding rewards.

Buy and sell on the above exchanges.

Buy directly from the project’s official website.

  • What companies and organizations have invested in Stacks?

Some of the names behind the success of Stacks are SVAngel, Huobi Capital, Versionone, LUX, Foundation Capital, ZhenFund, YCombinator, etc.


To sum up, Stacks is an unique and ground-breaking project that aims to improve Bitcoin’s usability and enable it to engage in the sizable Defi ecosystem. Stacks is always a long-term development project as long as Bitcoin is still widely used, especially considering that it has consistently ranked in the top 100 largest coins by market capitalization.

The danger is most at this time, though, since the STX coin’s price fluctuation continues to largely mirror that of the cryptocurrency market as a whole. Particularly STX needs a bigger breakthrough to climb significantly, however as of right now, Stacks (STX) hasn’t exactly made a splash. So, think twice before investing in Stacks if you think it will succeed in the future.

The above is Meta Lion’s comment on the Stacks project which is our personal opinion, this is not investment advice at all. Investors should be responsible for their own decisions.

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