What is Stacks (STX)?

Stacks is an open-source blockchain network that leverages the security and capital of Bitcoin for decentralized apps and smart contracts. The Stacks ecosystem is a collection of independent entities, developers, and community members working to build a user-owned internet on Bitcoin.

The platform is powered by the Stacks token (STX), which is used for creating smart contracts, processing transactions and registering new assets on the Stacks blockchain. Stacks aims to take what makes Bitcoin so powerful, and extends it with additional functionality, without needing to fork or change the original Bitcoin blockchain.

It connects directly to the Bitcoin blockchain through its Proof of Transfer (PoX) consensus mechanism, which has miners pay BTC to mint Stacks (STX) tokens. STX token holders can also stack (not stake) their tokens to earn Bitcoin as a reward.

Stacks uses a new smart contract programming language called Clarity, which is designed to be both secure and easy to build on thanks to its unambiguous syntax. This smart contract programming language is also used by the Algorand (ALGO) blockchain.

Stacks powers decentralized apps: Apps that run on the Stacks blockchain instead of a centralized server, enabling new use cases that couldn’t exist before. These DApps (decentralized apps) 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 and arguably the most secure blockchain in operation: Bitcoin.

To see more about STACKS, click here.

Don't forget to follow us on social media, our representatives are present on the NiceHash Discord and subreddit where you can stay up to date with our media announcements and the latest news, as well as tips and tricks from our community.

Thank you for your support!

Your NiceHash team