Cryptocurrencies and blockchain technology have grown rapidly in recent years. However, while the benefits of blockchain in terms of speed, costs, streamlined operations, and increased efficiency outweigh its disadvantages, several issues still need to be addressed for widespread adoption.
The technical scalability of the network is one of the most challenging concerns that can strain the adoption process, especially for public blockchains. Blockchain networks use so much processing power and time to maintain decentralization and security that they fall back in terms of scalability.
The scalability issue is also one of the notable drawbacks of the Bitcoin network. This is where blockchain Layers 1 & 2 come into the picture in their attempt to offer a solution to the scalability challenge.
Stacks (STX) is a Layer 1 blockchain project that attempts to solve Bitcoin’s scalability issues by modifying the base protocol of the blockchain network. In other words, the Bitcoin network acts as the finality and security layer for the smart contracts contained and executed in the Stack Blockchain. Stacks claims to add smart contract functionality to the Bitcoin blockchain without changing or cluttering the Bitcoin mainnet. The merging of smart contracts with Bitcoin’s functionality will boost the mass adoption of Bitcoin.
Read on to learn about Stacks and how to buy STX in a few simple steps.
Let’s get started!
What Is Stacks (STX)
Stacks is a layer-1 blockchain solution that allows smart contracts, non-fungible tokens (NFTs), and decentralized apps (DApps) to be added to Bitcoin (BTC) without affecting its security and stability.
These DApps are open and modular, which means that developers can build on top of each other’s apps to add extra functions that would be impossible in a traditional app. Because Stacks employs Bitcoin as its foundation, everything that occurs on the network is settled on the most extensively used and arguably the most secure blockchain in operation – Bitcoin.
The platform is powered by the Stacks token (STX), which facilitates smart contract execution, transaction processing, and the registration of new digital assets on the Stacks 2.0 blockchain.
The platform was previously called Blockstack, but it was renamed Stacks in Q4 2020 to “separate the ecosystem and open source project from Blockstack PBC” — the corporation that created the original protocols.
Stacks 2.0 mainnet was launched in January 2021.
Stacks Key Features
Built on Bitcoin
Stacks adds new functionality to Bitcoin by employing Bitcoin as a secure and reliable foundation layer to settle all transactions. The Stacks Blockchain provides support for smart contracts, decentralized applications, and the creation of flexible virtual assets that are easily transferable. Apps built on Stacks accept Bitcoin as payment.
Clarity Smart Contract Language
Stacks has deployed its own Clarity programming language to help it bring smart contracts to Bitcoin and facilitate the ecosystem’s security. Clarity uses predictable source code for executing smart contracts while publishing them on the blockchain nodes.
Clarity allows users to set up their own conditions for transactions.
Proof of Transfer
Stacks uses the Proof-of-Transfer (PoX) consensus mechanism that makes Stacks highly scalable and decentralized without causing additional environmental impact. PoX uses two blockchains – the secure Bitcoin blockchain to secure new chains on the Stacks blockchain without requiring new Proof-of-Work chains and cryptocurrencies.
The Proof-of-Transfer mechanism eliminates the system of burning cryptocurrencies. Instead, mined cryptocurrencies secure the new blockchain.
The PoX mechanism also facilitates the network’s reward protocol by allowing Stacks token holders to receive rewards in Bitcoin.
Stacks was founded by Muneeb Ali and Ryan Shea, the founders of Blockstack PBC, a New York-based company. Blockstack PBC is currently known as Hiro Systems PBC and is one of several firms that use the Stacks platform.
Muneeb Ali co-founded Stacks in 2013 after graduating from Princeton University with an MA and Ph.D. in computer science. He is the CEO of Hiro Systems PBC.
Ryan Shea was the co-CEO of Hiro Systems PBC from 2013 to 2018 before leaving it to co-found a new software startup now in stealth mode. Shea had worked as a software developer before joining Stacks.
Many renowned venture capital firms, including Y Combinator, Winklevoss Capital, and Digital Currency Group, have helped launch Stacks.
What Makes Stacks Unique
Stacks aims to solve Bitcoin scalability issues by adding additional features to it without forking or changing the original Bitcoin network. It’s linked to the Bitcoin blockchain through its Proof-of-Transfer (PoX) consensus mechanism, which requires miners to pay in BTC to mint new Stacks (STX) tokens. Furthermore, STX token holders can stack (rather than stake) their tokens to receive Bitcoin as a reward.
Clarity, a new smart contract programming language launched by Stacks, is designed to be both secure and easy to build due to its simple syntax. This smart contract-centric programming language is also used by the Algorand (ALGO) blockchain.
STX was also the first cryptocurrency to be SEC-qualified for sale in the United States, allowing Stacks to perform a $28 million Reg A+ sale cash offering for its STX tokens in July 2019.
Check the STX price, 24-hour trading volume, market cap, circulating supply, total supply, max. supply, historical statistics, etc., on CoinStats, and get updates on STX price live data.
According to the Stacks 2.0 whitepaper draft (v0.1), 1,000 STX per block will be issued in the first four years, then decreasing to 500 STX/block in the following four years, 250 STX/block in the next four years, and 125 STX/block perpetually.
The creator received 6.6% of the initial genesis supply (1.32 billion STX), while the Stacks team received 7.9%.
How Is the Stacks Network Secured
The Stacks blockchain is built on top of the Bitcoin blockchain. Bitcoin, as a Proof of Work (PoW) blockchain, employs the collective efforts of thousands of miners and nodes to safeguard the network against assaults by making it computationally and economically impossible to destabilize the network. Stacks leverages Bitcoin’s high level of security since Stacks’ transactions are settled on Bitcoin.
Additionally, Stacks offers its own Proof-of-Transfer (PoX) consensus mechanism, a revolutionary mining method in which users transfer BTC to mine STX. This enables Stacks to leverage the security and capital of Bitcoin for DApps and smart contracts.
Where to Buy Stacks (STX)
Here are the top 5 exchanges where you can buy Stacks (STX) cryptocurrency with a credit or debit card or Bitcoin (BTC).
Binance is one of the most well-known and largest cryptocurrency exchanges worldwide. Buying Stacks (STX) on this exchange includes low fees and increased liquidity, allowing you to buy and sell quickly to capitalize on market-moving news.
This exchange is ideal for investors in Australia, Canada, Singapore, the United Kingdom, and other countries. Currently, residents of the United States are prohibited from purchasing stacks (STX).
KuCoin is one of the most competitive exchanges in terms of fees and services. It’s a well-known cryptocurrency exchange and has grown immensely since its early days of allowing only crypto-to-crypto trading. KuCoin currently provides a wide range of services, including P2P exchange and credit or debit card purchases. It will enable you to buy Stacks (STX) cryptocurrency and over 500 other popular tokens, including new tokens.
The exchange currently accepts United States residents.
Coinbase is a NASDAQ-listed cryptocurrency exchange and one of the most popular exchanges in the United States, accepting clients from over 100 countries, including Canada, Australia, Singapore, and the United Kingdom.
Over 70 million Coinbase users have exchanged over 460 billion USD in volume. Security is Coinbase’s top priority, with 98% of customer assets stored in secure offline storage. The platform is simple to use and supports trading over 140 cryptocurrencies, including Stacks (STX). It’s is available on PC, Android, and iOS.
This exchange presently accepts United States residents, except for Hawaii.
MEXC is a Seychelles-registered cryptocurrency exchange founded in April 2018. It allows USD, CNY, EUR, VND, GBP, and AUD deposits, as well as CNY and VND withdrawals. MEXC offers over 245 coins and 374 trading pairs and continually extends support for new DeFi coins.
BitMart is a cryptocurrency trading platform that allows you to trade in various financial markets. The exchange is designed for novice and intermediate traders and supports over 100 crypto pairings against Bitcoin, Ethereum, Tether, or BMX tokens.
The exchange has expanded its offerings to include a futures market with leveraged trading up to 100x, as well as DeFi services like borrowing and lending.
How to Buy Stacks
Follow our step-by-step guide below to buy Stacks right away!
Step #1: Choose a Crypto Exchange
You can buy and sell Stacks on various cryptocurrency exchanges. You must compare them to select the best trading platform with the features you need, such as low trading fees, an easy-to-use interface, and 24-hour customer support. Also, remember to check if the cryptocurrency exchange supports your preferred payment method, such as a credit or debit card, another cryptocurrency, or a bank transfer. Some exchanges provide advanced trading tools and services, like limit and market orders, crypto loans, and crypto staking.
Step #2: Registration
Following the selection of a reliable exchange, the next step is to open a trading account to trade STX. The parameters vary according to the platform. Most purchases on centralized exchanges will require personal information such as your name, email address, contact number, social security number, home address, and a copy of your driver’s license, passport, or government-issued ID. If you plan to buy Stacks using fiat currency from your bank account, you must give this information to get verified.
After submitting your account creation application, check your email for the account verification code, enter the code to validate your account, and start trading. It’s advisable to enable two-factor authentication (2FA) to keep your assets safe.
Step #3: Fund Your Account
After verifying your account, you must deposit funds to purchase STX tokens and other cryptocurrencies. Simply choose your payment method, such as a bank transfer, credit or debit card, e-wallets, etc. The payment method you use will be determined by the platform, location, and preferences.
While a bank transfer from a local bank account is usually free, you should double-check with the exchange before depositing funds.
Credit or Debit Card:
You can easily link a card to top up your account. Once connected, you can use your card to make a one-time purchase or set up monthly payments. However, you should be aware that using your credit card to purchase cryptocurrency may incur an extra cost.
You can buy Stacks by trading it for other cryptocurrencies like BTC or a stablecoin. Since this varies between exchanges, you’ll need to look for STX on the spot market to view the available trading pairs.
Step #4: Buy Stacks STX
You’re now all set to buy STX. The process of buying Stacks is similar to buying other cryptocurrencies, and the process is almost the same across all platforms. You should search for the Stacks token in the search box, check the STX price, and click on the “Buy STX” button.
The next step is to enter the quantity of STX to be purchased or the fiat amount available for spending. Most exchanges will quickly convert the amount so that investors know how much they’ll pay and how many STX tokens they’ll get. Check all the details before finalizing your STX purchase to verify there are no errors. Also, ensure that you’re buying Stacks STX and not similar or lookalike tokens.
If you don’t already own a CoinStats account, register one to buy Stacks from CoinStats.
How to Store STX
Once you’ve completed your Stacks purchase, the next step is to select a crypto wallet to store your coins safely. Your coins can be saved in your brokerage exchange wallet, but we strongly recommend creating a private wallet with your own set of keys. Depending on your investment preferences, you can select between software wallets and hardware wallets.
CoinStats Wallet is one of the best software wallets for managing all your DeFi and crypto in one place – a single crypto wallet for buying, selling, swapping, tracking, and earning on your crypto!
Hardware wallets, also known as cold wallets like Ledger or Trezor, are the most secure solutions since they include secure offline storage and backup functionality. These are better suitable for experienced users with a large number of tokens.
How to Sell Stacks
You can cash out your STX with the same exchange where you bought it by following the same steps:
1. Sign in to the exchange account where you have STX.
If you have kept your Stacks STX in a digital wallet, compare crypto exchanges to choose where to sell it.
2. Place a sell order.
Choose how much STX you wish to sell.
3. Complete your transaction.
Complete the sale of STX by confirming the selling price and fees.
Can I Buy STX on Binance
Yes, Binance provides various options to easily buy Stacks (STX) securely with low fees.
Check out the steps to purchase Stacks using the Binance app below:
Step #1: Register a Binance Account
Before you can buy STX, you must first create an account, functioning as your crypto buying platform, and verify your identity.
Step #2: Deposit Funds
On the Binance website top left, click the “Buy Crypto” link to view the deposit options available in your country. Simply choose your desired payment method, such as a bank transfer, credit or debit card, P2P Trading, etc.
Step #3: Buy STX
After depositing funds into your account, search for the STX token in the search box, check the STX price and click on the “Buy STX” button. You have 1 minute to place your order at the current price, or your order will be adjusted after 1 minute based on the current market price. To see the updated order total, click Refresh.
Step #4: Store, Stake, or Trade Your Stacks (STX)
You can store your newly acquired STX tokens in your crypto wallet, trade it for other cryptocurrencies, or stake it on Binance Earn to earn passive income.
Is STX a Good Investment
Before investing in cryptocurrencies, conduct due diligence and evaluate your cryptocurrency token and its related project, especially if the project is still in its early phases like Stacks. Consider the following factors:
Distribution: During the 2017-2019 ICO, no STX tokens were made available to the public. They were split between unnamed private investors and the founders. Following a three-year locking period, the tokens became liquid between January and November 2021.
Regulation: When STX was initially introduced in the United States, the SEC classed it as a security rather than a currency, which caused various regulatory issues. This decision was supposedly overturned in May 2021, according to Stacks developers. The SEC has not issued a public statement on the matter.
Adoption: The global adoption of STX mining has been slow. The network has a small number of miners in comparison to the total number of slots available. The crypto industry has been shifting away from mining consensus mechanisms because of their negative environmental impact. It’d be beneficial to perform a more in-depth investigation of the sustainability of STX mining compared to other eco-friendly cryptocurrencies.
Supply: STX’s future supply is limited to 1.8 billion, with 1.25 billion already in circulation.
Stacks (STX) makes a substantial contribution to the blockchain sector due to its unique features. It’s reasonable to assume that Stacks’ services will increase Bitcoin acceptance and usage in the crypto industry since it provides users with the benefits of combining smart contracts with Bitcoin functionality.
The Stacks blockchain’s incredible functionality allows us to foresee the network’s success in the industry. Stacks also appeals to users since it allows them to earn BTC just by engaging in the network.
You can also visit our CoinStats blog to learn more about wallets, cryptocurrency exchanges, portfolio trackers, tokens, etc., and explore our in-depth buying guides on how to buy various cryptocurrencies, such as How to Buy Bitcoin on Cash App, What Is DeFi, How to Buy Cryptocurrency, etc.
Investment Advice Disclaimer
The information contained on this website is provided to you solely for informational purposes and does not constitute a recommendation by CoinStats to buy, sell, or hold any securities, financial product, or instrument mentioned in the content, nor does it constitute investment advice, financial advice, trading advice, or any other type of advice.
Cryptocurrency is a highly volatile market and sensitive to secondary activity, do your independent research, obtain your own advice, and only invest what you can afford to lose. There are significant risks involved in trading CFDs, stocks, and cryptocurrencies. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider your circumstances and obtain your advice before making any investment. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant regulators’ websites before making any decision.