The hottest new way to earn Bitcoin is here.
And it's called 'Stacking'.
That's right. This project actually pays its token holders rewards in good old digital gold.
and also, they're building a dApp store on top of Bitcoin.
Find out about this new way to get Bitcoin
and why it could be an explosive project.
Let's get it.
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My name is Ben.
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Before even knowing that they were going to be on Teeka Tiwari's list of coins,
Stacks reached out to me and told me some pretty incredible developments coming onto their platform.
Now, not only is Stacks a smart contract and building platform,
but they are planning to expand.
And, well, let's just say that stacking sats is actually more relevant than just being a joke.
Stacks is planning a complete overhaul of its platform with Stacks 2.0.
Stacks 2.0 will enable a new way for users to earn BTC,
which would be formally called 'Stacking'.
Stacks 2.0 is bringing apps and smart contracts to Bitcoin,
which will help to set the stage for DeFi and other Ethereum-based activity
to move to Bitcoin
while positioning Bitcoin as the foundation
for a better internet that is owned by its users.
Doesn't that just sound magical?
In other words, STX will be making BTC more valuable
by enabling further innovation on the network.
The Stacks 2.0 launch, currently anticipated late 2020 or early 2021, is closer to launching a whole new project than an upgrade from Stacks 1.0.
Stacks 2.0, as the next iteration, won't just build on the success of Stacks 1.0,
which currently has over 400 apps on the network.
It will be an entirely game-changing project, enabling programming on Bitcoin.
This will ultimately allow Stacks users to build a user-owned internet on Bitcoin.
The dream of all Maxis.
But you need a token to do it.
As you probably already know, the internet as we know it is broken.
There are privacy violations by big companies,
data mining of user data,
loss of freedom of speech,
and so many more problems are being faced by us all today.
It seems daunting.
Blockstack seeks to try to provide a solution to everything we're facing
by allowing development on top of Bitcoin and building the decentralized Web 3.0.
Stacks 2.0 blockchain is a layer-1 blockchain that uses the Bitcoin blockchain as a secure base layer
to bring these smart contracts and decentralized apps to Bitcoin.
Stacks extends the capability of Bitcoin to enable smart contracts and apps without modifying Bitcoin
and with minimal transaction load on Bitcoin's network,
which is good.
It needs that.
Thousands of Stacks transactions result in a single hash in the Bitcoin blockchain,
and Stacks microblocks offer fast confirmations of streaming blocks,
according to a document shared with me, detailing Stacks.
I know what you're saying, BitSquad Bob.
"Bitcoin is too slow for this."
Well,
listen.
I know I say a lot,
but hold on.
Let me put on my maxi pants,
my big boy pants.
Thanks, Ivan.
Alright, guys.
So, what you don't realize is that Bitcoin can share its computing resources
without data being added to the chain itself.
And an application can use a separate Bitcoin blockchain and network,
as quoted by Satoshi Nakamoto.
Mind blown.
It's all done through a protocol called 'Proof of Transfer'
or PoT,
not to be confused with the stuff that your granddaddy smokes in his garage
or the stuff you get off the street from that shady guy in that luxury car.
Actually, that may be why the team isn't using the short acronym PoT,
and is instead using PoX.
Proof of Transfer
So, the Proof of Transfer white paper spans consensus between both the Bitcoin and the Stacks blockchain.
PoX is a new approach to consensus that leverages Bitcoin security to secure the Stacks blockchain
while providing a connection to Bitcoin.
Proof-of-Transfer uses mining and stacking.
Instead of consuming electricity all over again,
miners forward BTC to the network
for the chance to lead a block and mine Stacks tokens.
This means mining STX is accessible and possible for anyone with BTC.
Stacking then makes up the other half of the mechanism where the protocol redistributes the BTC committed by miners to qualified STX holders.
To qualify for BTC rewards,
token holders of STX must lock up a dynamic minimum amount of tokens for the time period they want to participate in stacking sats.
PoX is unique because it establishes an exchange pair between two cryptocurrencies,
STX and BTC.
Miners use the base cryptocurrency, BTC, to mine newly minted units of STX.
This interaction between stackers, STX miners, BTC and Stacks
powers the PoX consensus model,
which then enables developers to anchor the user-owned internet to Bitcoin.
So, now, let's talk about Clarity.
Clarity is a new programming language that brings smart contracts to Bitcoin.
Clarity is a secure and readable smart contract language
that was developed by Princeton and MIT scientists
over the last two years.
It makes it much harder to have smart contract bugs
and allows developers to write logic around Bitcoin state.
It is a decidable language,
meaning you can know, with certainty, from the code itself what the program will do,
according to a presentation on Stacks.
Clarity is interpreted, not compiled, like Solidity and other languages.
Further, the source code is published on the blockchain
for anyone to review.
Clarity gives developers a safe way to build complex smart contracts.
The Clarity open-source project is supported by the Stacks ecosystem,
Hiro PBC,
and Algorand.
All this to say, Stacks will enable innovation on Bitcoin
and doing so could send the token STX to the moon.
According to the white paper with Proof-of-Transfer and Clarity,
a few of the most important ongoing issues with Bitcoin are solved,
and developers are provided new tools that set the stage for DeFi and other Ethereum-based actions
to move to Bitcoin.
When combined with Clarity smart contracts,
PoX eliminates the choice between versatility and security.
With PoX, developers can build functionality on top of a secure infrastructure in Bitcoin,
while Clarity's design helps eliminate numerous smart contract bugs
and provides greater predictability.
New protocols typically encounter a bootstrapping problem
where it's challenging to incentivize users
to leave other blockchains to test a brand new blockchain.
Proof of Transfer provides a built-in funding mechanism for new chains and the capability to be rewarded in a base currency like BTC.
Similarly, new Proof-of-Work chains often struggle to accomplish the troublesome task of decentralization,
leaving them vulnerable to 51% attacks and other vulnerabilities.
With Proof-of-Transfer, developers can effectively create a new Proof-of-Work chain
that is anchored in the security of Bitcoin,
the world's most secure chain,
making Stacks a game changer.
Another differentiating factor of the Stacks blockchain is it possesses three properties that existing blockchains do not---
knowledge of time, blocks and cumulative work.
This allows the chain to mitigate block-withholding attacks,
and enhance chain quality with ancillary proofs,
and hedge bets on competing chain tips.
So, what types of partnerships do Stacks have?
Well, how about Chainlink,
Coinbase Rosetta,
Algorand,
KuCoin,
Binance,
and Crypto.com
just to name a few.
So you learned about the platform,
what about the token?
Where can we stack those gains?
The Stacks cryptocurrency, STX, is used as fuel for networking activity and contract execution,
similar to Ethereum or DOT on their respective networks.
STX can be locked by STX holders via stacking
to earn Bitcoin rewards for supporting blockchain consensus.
Stacks cryptocurrency was distributed to the general public through the first ever SEC-qualified token offering in US history.
The Proof-of-Transfer consensus mechanism establishes a fundamental exchange pair
between STX and BTC
that makes STX a unique asset allowing you, the user, to stake it to earn yield in BTC.
STX mining is how new STX tokens are minted
and how the Stacks chain and network makes progress.
Instead of consuming electricity all over again, as in traditional Proof-of-Work systems,
miners forward BTC to the network
for the chance to lead a block and mine STX tokens.
Tch!
Greta sure is going to be proud.
But this makes STX mining accessible and feasible to anyone with BTC.
So, what is Stacking?
Well, basically, earning BTC when staking STX.
Stacking is an innovative tool that rewards STX token holders
for participating in the consensus process.
STX holders who participate in Stacking are called Stackers,
not to be confused with stakers
because we don't need any confusion in the space.
Every time a new block is mined on the Stacks chain,
the protocol sends the BTC committed by miners to Stackers
as a reward for adding value to the network.
The requirements for Stacking are simple.
Users need to hold a dynamic minimum amount of STX,
which they can pool to meet the threshold and lock them on the network for the reward cycle,
which is approximately two weeks.
By locking STX and sending periodic transactions,
these users support blockchain consensus and further secure the network.
The BTC rewards made available in each cycle
come from the BTC and STX tokens
miners forward to the network
in hopes of earning the right to mine a new block.
Combined Stacking and STX mining
make PoX a more secure consensus algorithm to Proof-of-Stake
by building off of Bitcoin's Proof-of-Work.
Stacking provides users a new more secure way
to earn Bitcoin without the need to build costly mining setups,
leverage 3rd-party DeFi products built on potentially insecure Solidity contracts,
or get involved in centralized lending or risky DeFi yield farming schemes.
God knows I've been too many of those.
Stacking, unlike most models of staking
that revolve around purchasing and then staking Proof-of-Stake tokens
to earn a return in the same asset,
allows STX holders to earn BTC in return,
which is huge.
For DeFi users, they commonly convert their earnings back to BTC anyway.
This reward and consensus mechanism provides a much more direct way for users to earn BTC
and put their capital to work at the same time.
Further, in traditional Proof-of-Stake systems,
users are incentivized to sell assets to cover uptime and maintenance costs.
By contrast, Proof-of-Transfer rewards participants in a more liquid asset, BTC,
meaning STX capital markets are not impacted by sell pressure from Stackers
as they might be in traditional Proof-of-Stake systems.
You don't want to miss Blocstack.
It could become the decentralized app store
built on top of Bitcoin,
with its growing adoption of over 400+ dApps on its existing 1.0 blockchain.
Stack 2.0 is going to be a heck of an expansion with DeFi.
And a big thank you to Blockstack for sponsoring this video,
but if you guys have been watching my channel,
you guys know I've talked about Blockstack several times,
and I'm definitely a big fan of what they're doing.
But, hey, that's all I got.
Be blessed.
BitBoy out.