**Authored by: @hetty-rowan**
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![interesting.png](https://images.hive.blog/DQmRfRGWB7cU1syzwMZtjCuxvZAxtLyftHTUmv4AHTswwHU/interesting.png)
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# Privacy 
Privacy is our highest good, and we want our data to be safe, both online and in the analogue world. You are responsible for protecting your privacy. We do this by hanging curtains on the windows, placing a lock on our doors, and not haphazardly leaving our citizen service number.
 
Our private life offline is easy to control, but digital privacy has its challenges. We often inadvertently share information about ourselves online, when we actually didn't intend to. The blockchain is public for everyone, making privacy an issue on the Bitcoin blockchain. This was the reason for Vitalik Buterin to start the Ethereum blockchain, creating smart contracts. Although Ethereum is also an open source network, on which transparency is central, private transactions are possible.
 
Privacy cryptocurrencies, such as Monero and Zcash, were created from the same mindset: the demand for overall anonymity. Then Stacks came into play with the solution to the privacy issue.

<sup>**Note: Stacks was formerly known as Blockstack!**</sup>

# What is Stacks (STX)?
Stacks (STX), is a network on which developers create smart contracts and decentralized apps on the Bitcoin blockchain. The driving forces behind the platform present the project as an alternative to traditional cloud computing.
 
The project is divided into two parts: on the one hand there is Stacks, the core of this project. They control the blockchain, while Hiro is the developer of the tools for Stacks. Stacks 2.0 was launched recently, January 2021. At the time of writing, this is still in full development, as the roadmap will later show.
 
The project originated in 2013, when founders Muneeb Ali and Ryan Shea started Blockstack. They were affiliated with Princeton University where they researched and planned the development. They developed for four years and only then did the financial picture play a role.
 
The funny thing is that Blockstack was actually the subject of Muneeb's doctoral dissertation. He had a vision for the future of the internet, but as a p2p network (peer-to-peer), so without intermediaries.

# What can you do with Stacks (STX)?
The purpose of Stacks (STX) is to improve the Internet as we know it today. That is why the former Blockstack works with many protocols, so that users really get that guaranteed privacy. Or, as they say themselves, 'a better internet, built on Bitcoin'.
 
Because the platform is so development-friendly, it is quite easy to create decentralized apps and smart contracts. Because even though Stacks has its own blockchain; it is anchored to this of Bitcoin, allowing you to take advantage of all its strengths. How should you see this? Stacks' consensus algorithm is linked to Bitcoin's, ensuring continuous verification between both blockchains. This allows you as a developer to build decentralized applications and smart contracts on Bitcoin.
 
The benefits for the user are clear: everyone who uses the Stacks network owns and is in control of their own data. So you have **more freedom**, but at the same time **more privacy** than on the regular internet. As far as I'm concerned, a refreshing breeze, since Facebook, Microsoft, Google and other giants earn big money from your personal data.

# What are 6 features of Stacks?

* **Proof of Transfer (1)**
I already talked about consensus algorithms above, but **Proof of Transfer (PoX)** is fairly new. Stacks writes about this on their own website, but running these algorithms requires computing power, or financial resources. The aim is to make the security so strong that a malicious actor cannot have sufficient resources to bring down the network.
 
	Popular consensus mechanisms are, as mentioned earlier: Proof of Work (PoW), Proof of Stake (PoS) and Proof of Burn (POB). The latter has recently been added to the list of mechanisms. Miners compete as they attempt to address the high energy consumption of a POW system by destroying (burning) it.
 
	Proof of Transfer (PoX) is an extension of this Proof-of-Burn mechanism. PoX uses the POW cryptocurrency of an existing blockchain, so that the new blockchain is more secure. So the goal here is not to destroy, as with Proof of Burn, but to transfer the cryptocurrency. The miners are rewarded for this with cryptocurrency, because they contribute to the legitimacy of transactions.
 
	All Stacks transactions will be settled on the Bitcoin blockchain, allowing them to benefit from this high level of security. If I had to mention disadvantages of Bitcoin, it is first the low transaction speed and secondly a lack of smart contracts that cannot be created on the BTC blockchain.
 
	The advantage of Stacks is the innovation in this area. The alternative to the PoW of Bitcoin and Ethereum, as it uses Proof of Stake and other energy-friendly mechanisms, such as Proof of Burn. With Proof of Transfer (PoX), the miners do not use computing power and electricity to earn transaction fees, but transfer Bitcoin (Proof of Work currency) to the Stacks Token holders.
 
	**The advantages for the Proof of Stake protocol:**
*Anyone can mine, because no special hardware is required;*
*Stacks apps interact with Bitcoin data;*
*The security of Stack's apps is identical to that of Bitcoin.*
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* **Blockchain stack (2)**
Stacks blockchain may be based on Bitcoin, but it is much more flexible. With Stacks, the former Blockstack, you can create smart contracts, create digital assets and decentralized apps. For the tech connoisseurs among us: it is a layer-1 blockchain just like Bitcoin, where Proof of Transfer ensures a block ratio of 1:1 with Bitcoin.
 
	So it's not layer-2, but why not? Because the first layer is the network layer, which takes care of the communication between users and the blockchain, just like Bitcoin and Stacks. A layer-2 is a unique blockchain that communicates based on a protocol, such as Lightning Network.
 
	Only registered user identities are stored on the Stack blockchain, such as dApps and smart contracts. These are processed independently of Bitcoin, allowing the Stacks transactions to take advantage of Bitcoin's security. The transactions are paid with the Stacks Token (STX), which I will talk about later.
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* **Stacks Auth (3)**
The Stacks user identification system is called Stacks Auth. Thanks to this authorization form, it is possible to log in to any app built on Stacks, with the same data.
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* **Stacks Gaia Storage System (4)**
All Stacks user data is stored in the Gaia storage system, except for the identity data and transactional details. Thanks to the basis of Blockchain, it is possible to offer users of Stacks applications high performance and high data availability, without introducing external trust parties.
Gaia leverages off-chain cloud systems, such as DigitalOcean, Azure, and AWS 3, enabling ultra-fast access to data. The management of this data rests entirely with you, as a user, when you go through the authorization via Stacks Auth.
Thanks to programming language Clarity in the protocol, smart contracts are stimulated, which you will read more about below.
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* **Clarity (5)**
	> ‘This time it’s for real, build a Clarity contract for Stacks 2.0 to claim glory (and STX)’,
Stacks itself claims on the website. Clarity, as the name suggests, is a clear language for smart contracts.
 
	The built-in SPV (Simple Payment Verification) proofs provide insight into the status of the Bitcoin chain, making it easy to program Bitcoin-based logic in apps and smart contracts. This system is described in detail in the original Bitcoin Whitepaper, so if you are bored: give it a chance!
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* **Stacking (6)**
The last point of this list: stacking. Stacking is the temporary locking of your STX, so that you support the security and consensus of the network. As a thank you for this staking, you will receive Bitcoin via Proof of Transfer, which the miners transfer.
 
# What is Stacks Token STX?
We haven't talked extensively about the Stacks token STX yet. This is used on the blockchain, actually as fuel, so that all transactions can take place. Stacks takes all the goodness of Bitcoin, but also throws it a little extra, without destroying the original Bitcoin blockchain.
 
# How did Stacks STX come about?
The first block of the blockchain, such as Bitcoin, that has ever been mined is called the Genesis Block. There were 1.32 billion STX tokens in one cap, which were further issued in 2017 and 2019. In 2017 the unit price was $0.12 and in 2019 it rose to $0.25 or even $0.30 if you speak about SEC-qualified offerings. During the Initial Coin Offering (ICO), USD 50 million was raised, resulting in 1.08 billion STX tokens in circulation.

Stacks (STX) is the first coin to receive SEC qualification, meaning you can host an ICO in the US market. You can see in the image a breakdown of the Genesis block tokens. The future supply is estimated at approximately 1,818 billion STX, which may be reached by 2050. As of January 2021, 739.9 million STX tokens are in circulation.
Muneeb Ali got 6.6% while the rest of the team took 7.9%. 

A portion of the token also went to Princeton University (3.8%), after which 29.2% was publicly traded in 2017 and a further 8.9% in 2019.

# Present and Future of Stacks (STX)
Stacks (STX) is a popular coin, so expectations are high. Since the introduction of Stacks 2.0, the price has only increased.
 
# Which wallet to use for Stacks (STX)?
For Stacks STX, the options are not that limited, which is of course one of the advantages of this ecosystem. Hiro has of course developed its own wallet for Stacks, but there are also other options:

* Stacks Wallet from Hiro;
* Xverse Wallet;
* Tree Wallet;
* Ledger Live vs. Ledger Nano X (Hardware wallet).

# Roadmap of Blockstack / Stacks
I said at the beginning: Stacks is still fairly new to the market, but that doesn't get in the way of their ambitions. The Stacks roadmap has been successfully completed to date, which means that Mainnet 2.0 could be rolled out in January 2021.

# Conclusion
Stacks 2.0 is a huge improvement over the Blockstack network. The upgrade introduced Clarity as a smart contract language and Proof of Transfer (PoX), as a new mining mechanism that allows all users to earn BTC.

Whether it's your thing or not...that's for everyone to decide for themselves. I was especially surprised that I had never actually heard of this. Am I going to do something more with it? I don't really think so, but it never hurts to know what's out there and what it does.

# Wishing ya'll a happy Monday

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