What is Stacks (STX)?

Stacks is a Bitcoin layer that enables dApps, NFTs, and smart contracts to settle transactions on the Bitcoin Blockchain. It extends Bitcoin's functionality beyond a peer-to-peer transaction blockchain by associating smart contracts, dApps, and other Web 3 capabilities with it. STX is the native currency of Stacks, which rewards miners on the Stacks, pays transaction fees, and fuels smart contracts.

The project was started in late 2017 by developers Muneeb Ali, Ryan Shea, and others. They were working on building something on Bitcoin L1 when they estimated how a separate layer on Bitcoin could scale its use cases without compromising security following the fact that Stacks' mainnet was made live in 2021.

Every transaction on the Stacks layer automatically gets settled and hashed on the Bitcoin L1 and thus is secure by Bitcoin's security. To enable all this, Stacks uses a novel consensus mechanism, Proof of Transfer (PoX), that establishes a seamless connection between Bitcoin and Stacks layers. This PoX consensus is similar to the PoW (Proof of work) consensus of Bitcoin. Identical to how PoW miners spend electricity and resources and get rewards in BTC, Stacks PoX miners spend the already mined BTC to win rewards in STX tokens. It has a total supply of 1.82 billion and undergoes halving every four years, like Bitcoin. It is expected that this supply will be released entirely by 2050.

How does Stacks (STX) work?

Stacks (STX) is a Layer 1 on the Bitcoin blockchain that enables Bitcoin-based DeFi applications and stablecoins. It leverages the Bitcoin blockchain for identity verification and data settlement, allowing the users to transact with it as currency.

To secure itself, the Stacks layer uses a new consensus mechanism, Proof of Transfer (PoX), which is distinct from energy-intensive computation mining like Bitcoin. PoX requires the miners to "transfer" BTC to other Stacks network participants to become eligible to mine a new block. Since Stacks can read the state of the Bitcoin blockchain, it then verifies whether the miner has completed this step.

Once validated, a winner miner is randomly selected to receive STX rewards and transaction fees. The probability of winning a block depends on the amount of Bitcoin spent per block by the miner. It also randomly selects the participant for transferring Bitcoin. This selection happens from those STX token holders who lock their STX to participate in the network consensus.

Anyone willing to mine STX needs to have a Bitcoin and a Stacks wallet. While a Bitcoin wallet helps miners transfer BTC and earn a chance to win a Stacks block reward, the Stacks wallet is necessary to receive the STX rewards after successfully mining a block in the Stacks blockchain. 

The Stacks ecosystem also has a "Stacking" feature to simplify token locking for STX token holders. This feature differs from the staking feature in the PoS (Proof of Stake) blockchains. While the reward in the PoS staking is in the same staking token, the STX stacking yield comes in the "burn chain" token, which is BTC in this case. The Bitcoins miners transfer to become eligible for a new Stack block are distributed to the stacking participants. So far, over 2000 BTC has been distributed in the stacking reward.

To further provide a seamless experience to its users, Stacks uses the modern and secure Clarity programming language for developers to develop smart contracts on the Bitcoin blockchain. The best thing about Clarity language is that its smart contracts are human-readable, making it possible to understand what the program can do from the code itself. It also facilitates users to set up their conditions for smart contract transactions.

An innovation within the Stacks ecosystem is the sBTC, a programmable Bitcoin-backed asset in 1:1 proportion. This asset enables smart contracts to write Bitcoin blockchain transactions without changing the source code. sBTC settles transactions with Bitcoin finality but at a low cost without any custodial fees. It aims to explore the new functionalities and new cases possible with the Bitcoin blockchain. These functionalities involve BTC on-chain lending and borrowing like DeFi, NFTs, DAO crowdfunding on the Bitcoin blockchain, .btc domain names, and many more.

How to Buy Stacks (STX) in India?

There are many platforms where you can invest and trade Stacks (STX) in India.

One such platform is Flitpay. To buy Stacks (STX) in INR, you have to sign up for the relevant application, where you will have to enter the required details and go through a small KYC verification process.

After the KYC approval, make sure you have correctly entered your bank details. Now, through the linked bank account, deposit the amount you want to buy Stacks (STX) and execute the Stacks (STX) purchase.

You can instantly convert your INR to Stacks (STX) and Stacks (STX) to INR and withdraw your INR through bank transfers whenever you want.

Flitpay also keeps introducing timely rewards for its users.

What Do  I Do After Buying Stacks (STX)?

Stacks (STX) can be used to buy other cryptocurrencies after converting them to INR through crypto apps like FLITPAY. You can also hold the Stacks (STX) till it reaches a high price, and then you can sell it through the FLITPAY Quick Buy/Sell order facility. Users can earn significant profits from buying it at a lower price and selling it at a higher price.

Additionally, STX also has multiple attractive use cases in the Stacks L2 ecosystem. One of its significant use cases is in the governance of the Stacks blockchain. STX holders get to vote on the proposed changes related to the network. They can also pay the transaction fee and smart contract deployment fee of the Stacks blockchain in STX token.

FAQ

What is Stacks (STX)?

STX is the native token of the Stacks blockchain that works to integrate NFTs, dApps, DeFi, and other web3 components in the Bitcoin blockchain. STX is the platform currency to pay for deploying the dApps of Stacks and settling transactions on it.

What is the Stacks (STX) price in India?

Check out the current INR price of STX crypto in India on Flitpay.

Which is the best cryptocurrency app to buy Stacks (STX) in India?

The best cryptocurrency app to buy STX or your favorite cryptocurrencies in India is Flitpay. Flitpay supports instant UPI and bank deposits and bank withdrawals with a minimum deposit and withdrawal limit of INR 100.

What are the benefits of Stacks (STX)?

Stacks (STX) enhances the Bitcoin blockchain with smart contracts and decentralized applications (dApps) while maintaining Bitcoin's security. Using a unique Proof of Transfer (PoX) consensus mechanism, Stacks enables faster transactions, and its Clarity programming language ensures transparency and security while programming Smart contracts. In short, STX turns BTC into a more productive asset by integrating DeFi and NFT projects.

Is it safe to invest in Stacks (STX) in India?

Yes, investing and trading STX is Safe in India. Flitpay is one of India's most secure cryptocurrency exchanges for buying MEME. It offers real-time prices and advanced investing features.

Is Stacks (STX) a Good Investment?

Stacks (STX) presents promising functionality in the crypto space through its ability to enhance Bitcoin's capabilities by introducing smart contracts and dApps without compromising its security. With a unique Proof of Transfer (PoX) consensus mechanism and fast transaction processing, Stacks offers a robust platform for innovation. Additionally, its support for DeFi and NFT projects opens up various avenues for growth, making it a compelling investment option for those interested in blockchain technology and cryptocurrency. However, like all investments, potential risks and market conditions should be considered before making a decision.