What Is Blockstack?
Blockstack is a platform developed with blockchain technology. It aims to extend Bitcoin’s usability and accessibility for internet users everywhere. It uses novel ideas to integrate smart contract technology and allows users to make transactions much faster than using Bitcoin directly.
It is also the only platform that has been able to harness Bitcoin’s power and apply it to enhance crypto processing and security without generating an abundant PoW (Proof of Work) footprint on the Bitcoin blockchain.
Blockstack Has Deep Roots in Decentralized Development
Blockstack was originally founded back in 2013 by Muneeb Ali and Ryan Shea with the target of finding solutions for underlying web and mobile apps issues. In 2014, the company launched a decentralized identity system and then introduced the first Blockstack platform in 2015.
After that, the team successfully completed several fundraising rounds and paved the way for a regulated token presale to hit markets in the near future. In October 2020, the company announced the newest upgrade to Blockstack 2.0, slated to be live in late 2020 or early 2021, while the 3rd version is already outlined in the upgrade plan.
According to the Stacks Token Economics Whitepaper v2.0, the Stack mainnet is scheduled to launch on the 14th January 2021, integrating the new smart contract language called Clarity along with tons of other functionality updates.
Up to this point, there are over 400 Blockstack applications published with more than 2 million registered users worldwide. With the Stacks 2.0 update coming, there is a good chance that development on the platform will amp up in 2021.
What Is STX Token?
STX is the native Stacks token, previously used to pay new asset registration fees and track their processing status. As a part of Stacks 2.0, STX will become the fuel for running the new smart contract platform, Clarity, and will also be used to pay miners rewards.
In its 2019 whitepaper, the company reported that an amount of 1.32 billion STX was distributed for the Genesis Block of the platform. By 2050, there will be 1.95 billion tokens more and 790 million that are added as a result of mining, making up a total sum of roughly 4 billion tokens.
It is estimated that the blockchain will process more than 4,300 blocks per month, and the mint issuance will decrease every year.
How Blockstack Will Change the Stacking SATS Game
Giant companies dominate the world, and the internet is no exception.
These companies build up empires and profit from databases of hundreds of millions of users all around the planet. On the other hand, anyone who uses these massive data structures barely gets any rewards for their effort and contribution to the global data sphere.
The situation is the same everywhere, from social networks to eCommerce marketplaces and even many blockchain platforms. Power is centralized, and few people can make a difference from within the system.
This dynamic is what Blockstack aims to break down.
New Opportunities for Everyone
With Blockstack, the Stackers will own their data and protect their own privacy while still generating and earning crypto revenue. The new Blockstack version will give power back to users and also offer income incentives to anyone on the platform.
How is the shift to greater online autonomy possible?
The answer is the core technology Blockstack uses to empower its mainnet called PoX (Proof of Transfer).
It was invented as an upgrade of the original Bitcoin’s PoW (Proof of Work) to provide a consensus mechanism to replace current old-fashioned methods, like crypto burning or mining.
PoW is designed to create new blocks on the blockchain. This is how Bitcoin’s blockchain maintains its security and grow.
What makes PoW unique is the capability to transfer in a community empowered by the consensus mechanism.
Thanks to that, users can receive incentives or rewards in Bitcoin for their contribution to the community, from initial participation to raising developer funds and so on. There are no other consensus reward programs existent in the virtual environment. Blockstack is an innovator in this regard.
Making a Community Profitable
Blockstack members have two ways to take part in PoX in the Blockstack 2.0 ecosystem. One way is to join the STX mining group, where new STX blocks are minted and added to the mainnet. STX Miners receive new STX tokens and receive them as rewards for creating new Stack blocks.
The other way is Stacking, also known as earning Bitcoin when Staking STX. This way of earning via the consensus process in which everyone can benefit from staked STX.
Stacks 2.0 is a layer-1 blockchain that connects to Bitcoin and brings smart contracts and decentralized apps to it. Smart contracts and apps developed on the Stacks platform are natively integrated with the security, stability, and economic power of Bitcoin.via Blockstack
Anytime new STX is successfully minted on the Stack chain, every Stacker involved will get a BTC reward for their added value. The reward level is determined by the miners and relevant to users’ contribution. Tangible, monetized incentives are distributed to recognize users’ contributions and will likely help the platform grow.
Smart Contract Functionality
In addition to PoX, the STX token is used in the next generation of smart contracts on the Stack chain.
Clarity, the new smart contract language, is the product of Blockstack and Algorand, an innovative open source project. Clarity is written for users to operate independently and designed to empower anyone who wants to use the new contract language.
Clarity smart contracts provide users with comprehensible and trackable protection for their transactions and offer excellent data protection. The system that Blockstack has created has blue sky potential and will probably attract investors that want to generate higher yields.
A Bright Future for Stacking STX
The launch of Blockstack 2.0 appears to be very popular among crypto investors. The company remains well funded. Its token sale will probably attract many people who couldn’t participate in the private funding rounds.
Not only has the platform attracted loads of investors, but there is also a healthy existing development environment for its technology. With the advent of the new features offered by Blockstack 2.0, these trends will likely be boosted, as the platform provides some of the most popular tools to a broader audience.