Stacks is a layer built on top of Bitcoin with the aim of expanding the Bitcoin economy and enabling more functionality. The mission of the Stacks project is to enable a better internet through decentralized apps, with the help of the added functionality that Stacks provides as a Bitcoin layer.
The Stacks layer allows for the creation of smart contracts and the building of decentralized applications on Bitcoin. This is accomplished through a consensus mechanism known as Proof of Transfer, which connects Stacks and Bitcoin, allowing applications to benefit from the security of Bitcoin. Transactions on the Stacks layer automatically settle on Bitcoin, which means that apps and digital assets built on Stacks are integrated with Bitcoin’s security.
Stacks also brings Decentralized Finance (DeFi) to Bitcoin, unlocking a significant amount of capital and setting the stage for the activation of the Bitcoin economy. Non-fungible tokens (NFTs) secured by Bitcoin are another feature of the Stacks ecosystem, and according to the Stacks website, these NFTs are seeing significant growth on the network.
In addition, Stacks introduces sBTC, which allows Bitcoin to become a foundation for a more secure Web3 by enabling trustless writing to Bitcoin and the movement of Bitcoin in and out of Bitcoin layers. This makes Bitcoin a fully programmable, productive asset.
Furthermore, Stacks’ native currency, STX, can be held and temporarily locked to support the network’s security and consensus. Participants can earn Bitcoin rewards through this process.
