![]() Stacks enables the introduction of DeFi to Bitcoin, leveraging its security and settlement assurances. Leading Bitcoin DeFi apps on the Stacks platform include Arkadiko, Alex, and LNSwap. Similar to how NFTs are not natively supported on Bitcoin, neither are DeFi apps. The most common DeFi applications offer savings, loans, and liquidity mining. Bitcoin DeFiĭeFi, short for decentralized finance, is an umbrella term that represents all financial services offered on the decentralized web minus the involvement of centralized financial institutions. With the Stacks blockchain, NFTs created on the platform are linked to the Bitcoin blockchain. Note: We will delve into how to purchase a Bitcoin NFT in a later section below. Hence the term ‘Bitcoin NFTs’ is appropriate because the non-fungible tokens, even though being created on the Stacks network, these NFT transactions are settled on and secured by the Bitcoin blockchain. However, now with the help of Stacks, NFTs have been realized on the premier decentralized protocol. With the Stacks blockchain, NFTs created on the platform are linked to the Bitcoin blockchain, which is designed not to run decentralized apps. However, over the last few years, other formidable rivals have cropped up, including Stacks. NFTs are created on blockchains that support smart contracts and, for the longest time, have been associated with Ethereum, the leading such platform. Non-fungible tokens can be used to hold, among other properties, ownership information, descriptive features, and provenance. Think of NFTs as titles representing other items, such as a car title or a property title. Non-fungible tokens (NFTs) are pieces of data existing on a blockchain that represent other assets. Let’s delve into each item in further detail: 1. Like its smart contact rivals, Stacks supports the development and running of decentralized apps designed for various use cases such as decentralized finance ( DeFi), web3 gaming, decentralized naming services (DNS), and NFTs.īelow are some of the use cases that have already been implemented, while others are under active development by the community: Stacks being a standalone blockchain, therefore, competes directly with other leading smart contract platforms such as Ethereum (ETH), and Solana (SOL), among several others. The primary purpose of the Stacks network is to expand the Bitcoin functionality without using the help of scalability solutions (i.e., layer-2 and side-chains), which have been the go-to solutions for competing networks. Essentially, transactions carried out on Stacks get settled onto the Bitcoin blockchain.Īs a smart contract platform, Stacks help introduce profound features not previously possible on the Bitcoin network. However, Stacks is connected to the Bitcoin network enabling the former to take advantage of the latter’s security, stability, and economic power. It maintains its transaction records, has its independent miners, and employs a unique consensus mechanism called Proof-of-Transfer (PoX). Instead, it is an independent blockchain that can exist outside Bitcoin. This is not the case, and neither is it a second layer (layer-2) scalability solution. ![]() The Stacks blockchain is often considered a side-chain to Bitcoin. The Stacks blockchain has a native cryptocurrency dubbed the Stacks Token (STX) which is instrumental in facilitating value transfer across the Stacks ecosystem. ![]() As part of the rebrand, Blockstacks PBC also changed its name to Hiro Systems PBC to develop supporting infrastructure for the Stacks and Bitcoin networks. In October 2020, the Blockstacks project rebranded to the Stacks ecosystem and launched the second iteration of its blockchain (Version 2.0) on January 14th, 2021. Stacks was initially launched in 2019 under the name Blockstacks by the company Blockstack PBC and was co-founded by Muneeb Ali and Ryan Shea. Stacks is a smart contract-enabled blockchain attached to the Bitcoin network enabling the introduction of decentralized apps (dApps) and non-fungible tokens (NFTs) to the premier decentralized network. Specifically, we will consider its features which include hosting DeFi Apps and Bitcoin NFTs, plus providing you with a brief tutorial on how to buy your first Bitcoin NFT through the Gamma.io marketplace. In this guide, we are looking at Stacks, a layer-1 smart contract-enabled blockchain that depends on Bitcoin for its security.
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