Bitcoin is the first Layer 1 Blockchain with the highest level of security and decentralization, but only applies to transferring BTC assets, does not support Smart contracts to build dApps. With the current needs of dApps as well as users, projects are starting to build layers on top of Bitcoin for the purpose of expanding and increasing the applicability of the Bitcoin network. Prominent among them is Stacks Network, a Layer 2 that supports Smart Contracts and helps expand the Bitcoin network.
What is Stacks Network? Stacks Network is Layer 2, a Smart Contract support layer on top of Bitcoin with the purpose of creating an ecosystem of dApps on the Bitcoin network to inherit the security and decentralization of Bitcoin. So what is Stacks Network? How does it work? Let’s find out in this article!
What is Stacks Network?
Stacks Network is Layer 2, a Smart Contract support layer built on the Bitcoin network with the purpose of creating an ecosystem of dApps to inherit the security as well as the security and decentralization of Bitcoin. And bring BTC, the asset with the largest capitalization in the Crypto market, to DeFi.
Stacks Network uses the Proof of Transfer consensus mechanism, which is essentially not much different from Proof of Work. PoX uses the proof-of-work cryptocurrency of an established blockchain to secure a new blockchain and Miners transfer committed cryptocurrency to several other participants in the network. CPoX blockchains are anchored on their chosen PoW chain Stacks are used Bitcoin as its anchor chain.
A special feature is Stacks, which synthesizes thousands of transactions into a single hash function for settlement. Then submit the proof or hash to the Bitcoin network. With Bicoin’s new block creation rate of 10 minutes per block, in that time the Stacks network can create 120 blocks. And transactions cannot be reversed after about 100 Bitcoin blocks or about a day of confirmation because the Stacks and Bitcoin networks are synchronized. Transactions that occur on the Stacks layer will be secured by the full hashing power of Bitcoin.
As for data availability, Stacks only publishes data hashes to each Bitcoin block instead of posting all data to Bitcoin. Bitcoin is used to authenticate data, which is very important. Bitcoin L1 and only Bitcoin L1 can confirm whether the presented Stacks layer history is valid or not. The block data itself is kept outside of Bitcoin L1 for scalability.
sBTC wraps BTC assets on the Stacks network, so smart contracts can run faster and cheaper using Bitcoin pegged assets without compromising safety. This also allows contracts on the Stacks layer to reliably write to Bitcoin via pegged transactions.
The language on Stacks is Clarity, with Clarity developers can know with mathematical certainty what a contract can and cannot do, even before executing it. Decentralized peg contracts will benefit from the safety properties of the Clarity language.
On the Stacks layer, there is a network of Nodes participating in creating new blocks and recording data and evidence for locking BTC in exchange for sBTC on the Stacks network. These Nodes are incentivized with STX tokens in addition to transaction fees.
The main Stacks chain also serves as the coordination layer for higher performance Subnets. A Subnet also supports smart contracts and it can make different trade-offs between decentralization and performance compared to a Stacks chain. Additionally, individual subnets can support smart contracts in different programming languages and execution environments such as Clarity VM, EVM, etc.
The Stacks layer, with its full execution environment and faster upgrade speed than Bitcoin, is one place
Great for testing Rollups on Bitcoin and other scalable technologies like Proof of Fraud. Rollup or Proof of Fraud published at the Stacks layer can benefit from 100% of Bitcoin’s computing power. Additionally, the Stacks layer can serve as a natural storage layer for any data needed for rollups with settlement on the Bitcoin blockchain.
Development Roadmap
- Phase 1, the project will launch a minimum viable product of sBTC on Testnet and deploy developer release in Mainnet and Testnet, to receive early feedback on sBTC design from users and create demand for innovation from partners in the Stacks ecosystem.
- Phase 2 will be the Mainnet phase of sBTC after going through the Testnet process and thorough security testing.
- Phase 3, move to scalability to handle increasing usage and traffic. Subnets are being explored as a potential path forward. There is also an active effort to integrate rollups with the Stacks layer, which would allow sBTC to be used directly in sovereign rollups on Bitcoin.
Core Team
Eva Paunova: Social Media Manager
- In 1999, Eva graduated with a Master’s degree in Computer Science from Massachusetts Institute of Technology. She then went on to graduate with a Master’s degree in Marketing from UCLA in 2005.
- In 2005, Eva worked as a Marketing Associate at Salesforce.
- In 2007, Eva worked as a Social Media Marketing Specialist at Microsoft.
- In 2010, Eva worked as a Content Creator at Amazon.
- In 2013, Eva worked at Epic Games, she held positions such as Marketing Campaign Manager, Growth Marketing Manager.
- Currently, Eva is the Social Media Manager of Stacks.
Allan M: Chapter Lead-Kenya
- In 2018, Allan started working part time as a Software Engineer at Gitcoin.
- In 2021, Allan and his colleagues started a business with SafariBlocks LTD, where he is Product and Tech lead.
- Currently, Allan is Chapter Lead-Kenya working part time at Stacks.
Investors
- November 14, 2014: Seed round successfully raised $1.3M from Digital Currency Group (DCG) investors,
Union Square Ventures, SV Angel, Ben Davenport, Naval Ravikant, Shana Fisher. - January 5, 2017: Funding round successfully raised $4M led by Union Square Ventures and also included other funds such as Digital Currency Group (DCG), Compound VC, Lux Capital, Version One, Naval Ravikant.
- December 4, 2017: Private round successfully raised $50M from Blockchain Capital, Union Square Ventures, Digital Currency Group (DCG), Y Combinator, Foundation Capital, Lux Capital, Winklevoss Capital.
- July 25, 2019: Funding round received investment from funds such as HashKey Capital, SNZ Holding, IOSG, Fenbushi Capital, The Spartan Group, Fundamental Labs, Tembusu Partners.
Tokenomics
Overview information about Token Stacks
- Token Name: Stacks
- Ticker: STX
- Total supply: 1,818,000,000
Token Allocation
- Treasury: 40.18%
- ICO: 12.05%
- Series A: 11.61%
- Founders: 9.82%
- SAFT: 9.68%
- Seed Round: 3.76%
- Mining program: 2.20%
- Employee Round 2: 2.10%
- Reg A+ Token Sale 2: 2.08%
- Reg A+ Token Sale 1: 2.04%
- Employee Round 1: 2.00%
- Reg S Token Sale 1: 1.68%
- Reg S Token Sale 2: 0.80%
Token Use Case
- Administration
- Pay the fee
- Encourage Nodes to create blocks and validate data storage
Exchanges
STX tokens are traded on major exchanges such as Binance, Coinbase, OKX, Gate, Bybit,…
Information Channel of Stacks Network
- Website: https://www.stacks.co/
- Twitter: https://twitter.com/Stacks
- Medium:
Summary
Stacks Network is the most comprehensive Layer 2 on Bitcoin, with infinite scalability when supporting Subnets, helping to develop the Bitcoin network and bring BTC to DeFi. But still ensures the safety of the main network and helps dApps built on Stacks inherit the security and decentralization of the Bitcoin network.
So I have clarified what Stacks Network is? Stacks Network cryptocurrency overview. Hope this article provides you with a lot of useful knowledge!