An altcoin trying to harness the power of Bitcoin (BTC) has received support from Coinbase, the top crypto exchange in the US. Stacks (STX) is added to the stock market and its price has increased due to this development.
In a new announcement, Coinbase said that Stacks (STX) trading will begin on the exchange Wednesday, January 19, if liquidity conditions are met. Stacks is an open source Blockchain linked to Bitcoin with a consensus mechanism that spans two chains called Proof of Transfer.
Through this architecture, Stacks aims to leverage the security of Bitcoin and enable decentralized applications (dApps) to use the state of Bitcoin despite being a different Blockchain. According to the Stacks website, the project aims to bring a number of new use cases to Bitcoin traditionally reserved for other blockchains.
“The world is approaching Bitcoin as a standard and the demand for use cases around Bitcoin is increasing. There are hundreds of billions of capital locked into Bitcoin, most of them as a passive store of value. Instead of competing with Bitcoin, Stacks, Bitcoin-backed loans, Bitcoin DeFi or NFT your Bitcoin It could provide new use cases for Bitcoin holders, such as using .
Following the news of Coinbase's listing, STX rose by about 35% to $2.64. After posting a 35% gain in a few hours, the STX has gone cold and is currently changing hands at $2.15 at the time of writing.
What Is Stacks (STX)?
Stacks is a layer-1 blockchain solution that is designed to bring smart contracts and decentralized applications (DApps) to Bitcoin (BTC). These smart contracts are brought to Bitcoin without changing any of the features that make it so powerful — including its security and stability.
These DApps are open and modular, meaning developers can build on top of each other's apps to produce features that are simply not possible in a regular app. Since Stacks uses Bitcoin as a base layer, everything that happens on the network is settled on the most widely used arguably the most secure blockchain in operation — Bitcoin.
The platform is powered by the Stacks token (STX), which is used for fueling the execution of smart contracts, processing transactions and registering new digital assets on the Stacks 2.0 blockchain.
The platform was formerly known as Blockstack, but was rebranded to Stacks in Q4 2020 in order to "separate the ecosystem and open source project from Blockstack PBC" — the company that built the original protocols. The mainnet for Stacks 2.0 launched in January 2021.