<h3><strong>What is Stacks (STX)?</strong></h3><p>Stacks (STX) is a layer-1 blockchain that brings smart contracts and decentralized applications (DApps) to Bitcoin. It leverages Bitcoin's security and stability while expanding its functionality to include programmable transactions and applications.</p><h3><strong>How does Stacks work?</strong></h3><ul><li><strong>Underlying Technology:</strong> Operates as an independent blockchain anchored to Bitcoin, recording its transactions on the Bitcoin blockchain.</li><li><strong>Consensus Mechanism:</strong> Uses Proof of Transfer (PoX), where miners commit Bitcoin (BTC) to earn STX, creating a direct link between the two networks.</li><li><strong>Smart Contracts:</strong> Written in the Clarity language, enabling predictable and secure execution without requiring compilation.</li></ul><h3><strong>What are the potential use cases for Stacks?</strong></h3><ul><li><strong>Real-World Applications:</strong></li><li style="text-indent: 1em;">Decentralized finance (DeFi) applications leveraging Bitcoin's security.</li><li style="text-indent: 1em;">NFT marketplaces powered by Stacks' smart contracts.</li><li style="text-indent: 1em;">Blockchain Naming System (BNS) for unique name registration.</li><li><strong>Industries:</strong> Finance, gaming, and digital identity solutions.</li></ul><h3><strong>What is the history of Stacks?</strong></h3><ul><li><strong>2013:</strong> Founded as Blockstack by Muneeb Ali and Ryan Shea to enhance Bitcoin's capabilities.</li><li><strong>2018:</strong> Stacks 1.0 mainnet launched in October.</li><li><strong>2020:</strong> Rebranded as Stacks to reflect its focus on Bitcoin programmability.</li><li><strong>2021:</strong> Raised $23 million to advance development and expand its ecosystem.</li></ul><p><br></p>

What makes STX important?

### What is Stacks?
Stacks is a cryptocurrency project designed to enhance the Bitcoin blockchain by introducing smart contracts and decentralised applications (dApps) to it. This extends Bitcoin’s functionality without altering its foundational structure.

### How does Stacks work?
Stacks operates as a layer-2 blockchain on Bitcoin, leveraging a unique consensus mechanism known as Proof of Transfer (PoX). This involves miners transferring Bitcoin to secure the Stacks network and acquire new STX tokens. Smart contracts on Stacks are crafted with the Clarity programming language, which directly interacts with Bitcoin's state and transactions, ensuring scalability and security through Bitcoin’s hashpower.

### What are the potential use cases for Stacks?
Stacks supports a broad range of applications, including decentralised finance (DeFi), non-fungible tokens (NFTs), decentralised autonomous organisations (DAOs), and cross-chain atomic swaps. It is also utilised in various sectors like financial services, digital art, gaming, supply chain management, and identity verification.

### What is the history of Stacks?
Founded in 2013 by Muneeb Ali and Ryan Shea, Stacks began as a project for a computer science Ph.D. at Princeton University. It evolved into a startup with Y-Combinator support in 2014. Key milestones include raising significant funds in token offerings, a rebranding in 2020, and launching Stacks Blockchain 2.0 in 2021 to introduce decentralisation. The project drew substantial investment, including an SEC-qualified offering, and continues to innovate with updates like the Nakamoto upgrade and the introduction of sBTC.

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