Stacks: The basics

 What is Stacks?

According to the Stacks website, Stacks is an open-source network of decentralized apps and smart contracts built on Bitcoin. Stacks unleashes Bitcoin’s full potential as a programmable base layer.

With the recent growing interest in Bitcoin which has seen individuals and even corporations investing in the cryptocurrency, there is no better time than now to learn and invest in Stacks.

What is Stacks' Proof-of-transfer (POX)?

This is a brand new mining mechanism, that generalizes the idea of proof-of-burn.  PoX uses the proof-of-work cryptocurrency of an established blockchain to secure a new blockchain. However, unlike proof-of-burn rather than burning the cryptocurrency, miners transfer the committed cryptocurrency to some other participants in the network. This allows that those who add value to a new cryptocurrency earn rewards in the base cryptocurrency. PoX has a thrilling advantage wherein individuals can earn payouts in a separate, base cryptocurrency whilst taking part withinside the new blockchain network. This can assist remedy bootstrapping trouble for brand spanking new blockchains with the aid of using supplying incentives for early individuals. Further, PoX has the ability to use cases for investment environment developer funds. It consists of two mechanisms: STX Mining & Stacking.

STX Mining

STX Mining like in any other cryptocurrency earns miners rewards and the mining of the STX block can be done once per Bitcoin block. The rewards are as follows:

1000 STX per block are released in the first 4 years of mining
500 STX per block are released during the following 4 years
250 STX per block are released during the following 4 years
125 STX per block are released from then on indefinitely.

To participate in the mining of STX, check here on how you can go about it. 

STACKING

Stacking is holding Stacks in (STX) your wallet and locking them for a specific period of time, which in turn earns you Bitcoins as a reward. This means that Stacks (STX) not only can be used as a method of payment for one wallet to another but also doubles as a way of investing since it can earn you bitcoin rewards.

Which wallets support the STX token?

To participate in Stacking, there are some wallets that one can use e.g Hiro and Xverse.

Hope you find this informative😉.

For more information on Stacks checkout 👉here


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