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Stacks blockchain

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Stacks, formerly Blockstack, is an open-source platform to enable smart contracts, DeFi, NFTs, and apps for Bitcoin. Stacks blockchain is a "layer" for Bitcoin similar to the Lightning Network.[1] In addition to smart contracts, the Stacks project provides open-source software for authentication, and data storage.[2]

Design

Concerns around internet privacy, security, and data breaches brought attention to the Stacks project.[3] Software developers have used the Stacks software to build decentralized alternatives to popular services.[4][5][6] Unlike popular consensus that blockchains are used to, to build the user-owned internet, Stacks relies on a novel and innovative consensus algorithm called Proof of Transfer, which is the extension of Proof of Burn and uses the Bitcoin Proof of Work to secure the Stacks Blockchain. In addition to the consensus algorithm, Stacks developed Clarity, an innovative programming language for Bitcoin that can read and write back to Bitcoin. Stacks also make it possible to securely store user data and allow the latter to be in control of his data and information with the decentralized storage Gaia. Stacks started as a Decentralised Identity project on blockchain (Blockchain Naming System) to bring a global unique name to everyone. Stacks (STX) token is the native cryptocurrency of the Stacks blockchain, which is used as gas fee for executing smart contracts and processing transactions.[7]

Proof of Transfer

Stacks uses Proof of Transfer to secure its blockchain. Proof of Transfer is the consensus between two blockchains (in this case Bitcoin and Stacks) that involves two entities, miners and stackers. While miners, who are Bitcoin holders/miners commit Proof of Work cryptocurrencies, stackers have to lock their Stacks tokens in the consensus to provide the valid chain to miners, and then earn Bitcoin that miners are spending on mining Stacks tokens. This mechanism helps Stacks state to be immutably recorded on the Bitcoin blockchain forever without any changes to the latter blockchain. In this particular protocol, Stacks chose Bitcoin for Stacks tokens mining because Bitcoin is the simplest, most secure, oldest, time-tested blockchain and represents the best store of value that favors Proof of Transfer mechanism implementation. Instead of using another source of energy to power the blockchain, Stacks has the best practice of using and recycling Bitcoin which is already an energy-proof cryptocurrency.

         

     n this particular protocol, Stacks chose Bitcoin for Stacks tokens mining because Bitcoin is the simplest, most secure, oldest, time-tested blockchain and represents the best store of value that favors Proof of Transfer mechanism implementation. Instead of using another source of energy to power the blockchain, Stacks has the best practice of using and recycling Bitcoin which is already an energy-proof cryptocurrency.

Clarity Programming Language

Developed in collaboration with Algorand blockchain developers and other independent developers entities, Clarity is an open-source and Non-Turing complete smart contract language. It is decidable, predictable, and human-readable. It does not allow a re-entrancy which is the major vulnerable point for some most popular smart contract programming languages like Solidity. Clarity language's most important functionality is its visibility to the Bitcoin state. It can read the Bitcoin state and react to it. It is designed to ensure the security of users by helping users know exactly which contract they are signing as the contract written in Clarity is broadcasted and executed as it is written to the blockchain and has the post conditions to protect users from contract abuse and bugs. Clarity language allows applications to be deployed and secure by the Bitcoin blockchain.

Decentralized Storage Gaia

Gaia is a decentralized off-chain data storage system for storing user data in a secure database to allow the user to have full control over his data and information. The structure of Gaia is strictly private and only the user with his keys can have access to his data storage in Gaia.

Decentralized Identity Blockchain Naming System

Decentralized identity on the blockchain, a network system of Blockchain Naming System are global unique human-readable names that attach a Blockchain address to an off-chain state without relying on any centralized control where data are recorded directly on the blockchain. The name owner creates its own namespace and sets all its own properties because he strictly owns the name. The system does not allow name collision because names can only be registered once on a first come first serve basis.

These names can serve as Stacks or Bitcoin addresses to receive Stacks or Bitcoin cryptocurrencies.

STX, Stacks token

As the native token of Stacks blockchain, STX serves different purposes. STX is primarily the transaction gas fee token used to connect apps on Stacks blockchain to Bitcoin. It also serves as Stacks blockchain miners' reward that follows Bitcoin’s halving schedule, and allows decentralization of the Stacks network. Stacks tokens allow their holders to earn Bitcoin rewards while stacking them in the Proof of Transfer consensus. STX also has Bitcoin as reserve currency which makes STX more economically viable and can be used in decentralized finance on the Stacks blockchain.

History

Stacks project was originally started by Muneeb Ali and Ryan Shea as Blockstack.[8] STX became the first SEC qualified token offering in 2019.[9][10] Blockstack PBC, a company working on the Stacks technology, raised around $75 million through a mix of venture capital and token sales.[8] The main Stacks blockchain launched in Jan 2021.[11]

Applications

Blockchain Naming System (BNS)

The Blockchain Naming System is an application used to register human-readable, globally unique names with accounts on the Stacks blockchain. A BNS name consists of a namespace, the name and optionally a subdomain.[12] Examples are muneeb.id, muneeb.btc and muneeb.id.blockstack.

CityCoins

In 2021, the CityCoins project launched fungible tokens for the cities of Miami and New York City.[13][14] In September 2021, Miami's city commissioners voted to accept the protocol treasury,[needs context] valued at $21 million at the time.[15] MiamiCoin's value crashed, and so Stacks donated $5.25M to the City of Miami.[16]

As of March 2023, Bloomberg was reporting that CityCoin was facing a "quiet demise" as liquidity issues and a lack of interest caused both the New York City and Miami coins to be delisted from the OkCoin cryptocurrency exchange.[17]

References

  1. ^ "Blockstack anchors to Bitcoin network with new mining algorithm". ZDNet.
  2. ^ Mühle, A.; Grüner, A.; Gayvoronskaya, T.; Meinel, C. (November 2018). "A Survey on Essential Components of a Self-Sovereign Identity". Computer Science Review. 30: 80–86. arXiv:1807.06346. Bibcode:2018arXiv180706346M. doi:10.1016/j.cosrev.2018.10.002. S2CID 49867601.
  3. ^ Singh, Harminder (1 October 2017). "'New internet' looks to keep user data away from tech giants and bypass China censorship". South China Morning Post.
  4. ^ Fung, Brian (23 March 2018). "The new technology that aspires to #DeleteFacebook for good". The Washington Post.
  5. ^ Dillet, Romain (5 September 2018). "Stealthy wants to become the WeChat of blockchain apps". TechCrunch`.
  6. ^ Simonite, Tom (5 March 2018). "The Decentralized Internet Is Here, With Some Glitches". Wired Magazine.
  7. ^ Daly, Lyle (10 Jun 2022). "What is Stacks (STX)?". The Motley Fool. Retrieved 28 September 2022.
  8. ^ a b "Blockstack raises $52 million to build a parallel internet where you own all your data". VentureBeat. 2017-12-04. Retrieved 2021-06-22.
  9. ^ SEC. "PART II — INFORMATION REQUIRED IN OFFERING CIRCULAR". www.sec.gov. Retrieved 2021-06-22.
  10. ^ Vigna, Paul (2019-07-11). "SEC Clears Blockstack to Hold First Regulated Token Offering". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-06-22.
  11. ^ Chavez-Dreyfuss, Gertrude (2020-12-07). "Blockstack's digital currency 'Stacks' to be tradable in U.S. once new blockchain arrives". Reuters.
  12. ^ "sebis TU München : Master's Thesis Martin Schäffner". wwwmatthes.in.tum.de. Retrieved 2023-01-22.
  13. ^ Brown, Dalvin (2021-09-30). "Crypto tax: 'MiamiCoin' has made the city $7 million so far, a potential game-changer for revenue collection". Washington Post.
  14. ^ Chen, Elaine (2021-11-03). "Eric Adams Aims to Make NYC Crypto-Friendly With Coin Similar to Miami's". Bloomberg.
  15. ^ Greely, Brendan (2021-11-03). "MiamiCoin, a currency without sovereignty". Financial Times.
  16. ^ Benavides, Cristian (February 3, 2022). "Miami Announces It Cashed Out Some MiamiCoin as Crypto Markets Are Down". NBC 6 South Florida. Retrieved 2022-04-13.
  17. ^ Wanna, Carly (21 March 2023). "Miami and New York's Crypto CityCoins Meet Quiet Demise". MSN. Bloomberg. Retrieved 8 April 2023.


 

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