Stacks 2.0, a layer-1 blockchain, scheduled to launch on January 14 will bring decentralized applications, smart contracts, and DeFi on top of Bitcoin. Stacks 2.0 will use the Bitcoin blockchain as its base layer to create a native connection without changing anything about the base layer. Developers will now have the access to necessary tools to build a DeFi ecosystem on top of the world’s most popular cryptocurrency.
Stacks 2.0 to Bring Dapps and Smart Contracts to Bitcoin
Stacks 2.0 blockchain introduces a new PoX (Proof-of-Transfer) consensus algorithm that establishes a consensus between Stacks blockchain and Bitcoin blockchain. The PoX consensus will mimic activities of Ethereum on Bitcoin blockchain along with additional features.
With the rollout of the new Stacks 2.0, comes a new developing language called Clarity. By combining PoX with Clarity and a host of additional features of the Stacks chain such as micro blocks, the blockchain intends to make developing decentralized applications easy, scalable, and securely anchored to Bitcoin.
The whitepaper for the blockchain was initially released in 2017. Although, the new whitepaper includes additional features along with the original idea.
Stacks 2.0 Enables Earning BTC in a New Way
Stacks 2.0 enables earning Bitcoin in a new way through a process called Stacking, where users can lock up their asset (STX) and earn rewards from the protocol in a reserve currency (BTC). To put it simply, stackers support consensus on the blockchain by locking or delegating their STX token while rewarded in each cycle with BTC payments.
STX was initially distributed to the public through the first-ever SEC-qualified token offering. The project recently released a legal memo that outlines how STX can exit securities status and become tradable on U.S. exchanges. In fact, OKCoin has assured to list the STX token in the United States upon the launch of Stacks 2.0.
The project is currently supported by a strong community, including independent entities, developers, investors, and more than 300,000 STX holders. Some of the participants are from the Stacks Foundation, New Internet Labs, Hiro, Freehold, and Daemon Technologies.