What is STX/Stacks on Bitcoin?
Stacks (STX) is a layer-1 blockchain that brings smart contracts and decentralized applications (dApps) to Bitcoin. Unlike Bitcoin, which focuses solely on being a decentralized store of value, Stacks enhances Bitcoin by enabling programmability, allowing developers to build applications that inherit Bitcoin's security and decentralization.
How Does STX Work?
Stacks uses a unique consensus mechanism called Proof of Transfer (PoX), which connects the Stacks blockchain to Bitcoin. This allows Stacks transactions and data to be anchored to Bitcoin, leveraging its immutability and reliability. STX, the native token of Stacks, powers the network and is used for:
- Transaction fees: Paying for smart contract execution and network activities.
- Staking: Earning Bitcoin rewards by participating in the PoX mechanism.
- Building on Bitcoin: Developing applications and Ordinals-related tools.
How Can You Use STX?
- STX can be used to interact with decentralized apps, mint and trade Bitcoin Ordinals, and participate in the Stacks ecosystem. It serves as the fuel for developers and collectors engaging with projects like Bitcoin Puppets and other Ordinals collections.
Where to Buy STX?
You can purchase STX on cryptocurrency exchanges such as:
After purchasing, store your STX in a compatible wallet, such as the Xverse Wallet, to interact with Stacks-based applications.
Note: If you'd like to learn more about wallets compatible with Stacks and how to use them, check out our Wallets Article.
Why Use Stacks?
Stacks empowers Bitcoin to do more by enabling smart contracts and decentralized apps without altering Bitcoin’s core functionality. For collectors and enthusiasts, it’s a gateway to exploring unique digital assets and projects like Bitcoin Puppets.