Stacks 2.0 to bring Dapps and DeFi to Bitcoin
Bitcoinist | January 11, 2021 | 14:00
The whole world is now paying attention to Bitcoin after cryptocurrency has risen more than five times in 2020 alone.
MHowever, as positive as 2020 is for Bitcoin, 2021 could usher in a new era of opportunity and value for Bitcoin. The new blockchain Stacks, which you can recognize as Blockstack, will bring smart contracts, decentralized applications, and DeFi to the top of cryptocurrencies. for the first time; Here's what that means for Bitcoin and why the launch of Stacks 2.0 could be monumental for the entire crypto industry.
Bitcoin in 2021: becoming more than digital gold
The digital gold story of 2020 has propelled the price of Bitcoin to well over $ 30,000, making its old all-time high of $ 20,000 a distant memory.
The explosive rally ends what has been a difficult year for all. No asset has performed as well in economic uncertainty as BTC.Even gold, the original safe haven asset, set a new price record, but still could not match Bitcoin's bullish momentum.
In 2021, however, we believe that Bitcoin will become more than digital gold. Stacks 2.0, slated for launch on Jan. 14, will provide developers with tools many believe would never be available on Bitcoin, potentially unlocking billions passively held on the network so far.
While Bitcoin has consolidated itself as a store of value, like digital gold, Ethereum has also has seen a bull run and renewed interest mainly due to an explosion of decentralized funding applications and protocols built using smart contracts. DeFi, as these applications and services are nicknamed, has grown exponentially at cmonths of summer, crypto users realizing they could borrow and lend, all without needing a bank.
But soon ETH gas charges skyrocketed, hacks and vulnerabilities continued to be a problem, and Bitcoin has taken center stage again in the mainstream. It looks like a promising new market in DeFi shows just how valuable it can be, but it's still held back by a lack of solid infrastructure, greater public trust, and affordable scalability
These are the issues that are at the heart of why Stacks 2.0 is so interesting. Can you create what people want like DeFi apps, but do it on one element the most people want (Bitcoin), on the blMost secure ockchain available (Bitcoin again), while also giving them better assurances on the smart contracts that govern their money, and oh, by the way, make it just as scalable? So far the answer has been no. Bitcoin's language of finite has forced developers to look elsewhere to figure out where and how to build things like DeFi apps.
But with Stacks, you can now use Bitcoin without modifying it, allowing developers of key tools to '' use the power of Bitcoin without being limited by it.
Meet Stacks 2.0, Proof -of-Transfer, STX tokens and an introduction to earning BTC
Stacks is a project originally started in 2013 by computer scientists Muneeb Ali and Ryan Shea. Although a technical white paper was published in 2017, so much has changed sinces, that a new White paper Stacks 2.0 has been released to explain all the innovations added to the original concept.
Stacks 2.0 introduces the PoX (Proof-of-Transfer) consensus algorithm, creating a single connection between blockchains Stacks and Bitcoin. This cutting-edge consensus algorithm is what enables Ethereum-like activity on the Bitcoin blockchain, in addition to a host of other features.
Stacks 2.0 also offers a new way to earn BTC . In a process called Stacking, STX holders phad to earn BTC from the protocol by locking a dynamic minimum amount of tokens on the network and actively supporting the blockchain consensus. Stacking is also one of the two main elements of the proof-of-transfer mechanism, mining being the other.
PoX reuses the electricity spent to secure the Bitcoin network rather than consuming the electricity a second time. It works when STX miners transmit BTC to the network for a chance to lead the block and mine Stacks (STX) tokens. Theoretically, anyone with BTC can mine STX tokens, making it one of the more accessible mining opportunities. a reserve currency (BTC) by supporting the blockchain consensus.
By combining PoX with Clarit y, a predictable smart contract language designed with Algorand and designed forbeing used on Bitcoin, along with other important Stacks chain design features such as microblocks, Stacks 2.0 makes decentralized application development easy, scalable, secure, and all Bitcoin-anchored.
The launch of Stacks 2.0 Mainnet will take place on January 14th: here's how to participate
Mainnet Stacks 2.0 will launch on January 14, 2021, bringing with it the promise of a new era of Bitcoin innovation and potentially a new chapter for the entire internet. . The language of smart contracts Clarity also comes online with Stacks 2.0 and suddenly developers have a set of tools to build on Bitcoin that many never thought they would.
We are excited to see where Bitcoin innovation can take Web 3.0, and what a world whereusers are anchored to a secure base layer that guarantees ownership at all times. evel looks like.
To register for the Stacks 2.0 mainnet launch event, be sure to check the official site . To find out more, you can also read the Stacks 2.0 technical white paper .