The State of Stacks Ecosystem
Stacks formerly BlockStack is the brainchild of Muneeb Ali and Ryan Shea aimed a fully decentralized web and to take on centralized behemoths like google, Facebook.
Stacks Ecosystem comprises of Stacks L1 chain and multiple applications built on top of it. The platform is backed by Stacks foundation and Hiro systems which builds tools for Stacks Ecosystem. The Stacks blockchain is anchored to Bitcoin Blockchain such that a Stacks Block is mined only when it gets written to Bitcoin BlockChain.
Stacks is currently having tons of activity, the Stacks L1 boasts of BNS, Nfts, Defi and several interesting applications like CityCoins like Miami Coin/NYC Coin etc.
As of today’s date Apr 24, 2022, 07:31 Central : STX block height: #57368 BTC block height: #733333.
Opportunity : 2022 marks of the end of first decade in Bitcoin adoption making the Bitcoin the first trillion dollar asset totally backed by trust. The uniqueness of this moment can be marked in many ways:
- for the first time in human history store of value is not backed by guns.
- it requires minimum security from a user, can be mass adopted and does not need the state’s legacy or legitimacy to thrive.
- Will create totally new economies native to internet and make current financial system redundant in many ways.
The second adoption decade[2023–2032] Bitcoin will take over gold as store of value, we can expect a 10 trillion market cap in less than 10 years. This represents price move at least 10x by most conservative estimates.
Stacks provides a unique opportunity to tap into this huge reserve of value represented by Bitcoin store of value proposition. Bitcoin’s lack of defi is a bit similar to gold where in it can just be stored and traded.
Stacks enables application layer on top of Bitcoin, namely smart contracts/BNS/NFTs/Hyper Chains etc.
July 2019, SEC Clears Block Stack to Hold first regulated token offering, at present since there is no clarity on the regulatory aspect of Crypto-currencies, only Bitcoin and stacks are not securities as per SEC.
Oct 2019, Stacks V1 , the genesis hard fork activated on Oct. 30, 2019, at block 547921, officially launching v1 of the Stacks blockchain. The mainnet launch enabled two critical features:
- Registration of all digital assets and smart contracts for registering digital assets with the Stacks (STX) token
- A genesis block that distributes Stacks tokens to existing purchasers
Jan 2020, Stacks 2.0 Main-net Launched
Hard Fork of Stacks 1.0 BlockChain to Stacks 2.0
1.New Consensus Mechanism : Staking (PoB to PoX).
2. Clarity Smart Contract language.
Oct 2021, Arkadiko Defi platform launched: Liquidity protocol, Stable Coin (USDA)/Collateral and Loans, USP: Self Paying Loans.
Jan 2022, ALEX launched (Automated liquidity Exchange) :Liquidity Exchange /DEFI/IDOs, USP : zero-liquidation borrowing/ lending risk DeFi platform.
Q3 Stacks 2.1 Launch and Upcoming Stacks 2.1 Launch, features:
- Continuous Stacking
- Increasing lock-ups or ‘topping off’
- Unlock unused STX automatically.
Q1 2023, Hyper Chain Launch
It is expected to see a 4X increase in throughput and reduced confirmation times from the current ~10mins → 1min.
(1)Slow, Settlement is in 10 Mins due to confirmations happening on Bitcoin layer.
(2)Staking is not continuous as yet, planned for Stack 2.1 launch.
(3)Mining is centralized, ordinary folks cannot yet joining the mining as yet.
In my opinion stacks holds an unique proposition because of the following reasons:
— Secured by Bitcoin.
— Incredible team and execution track record.
— Only crypto-currency apart from Bitcoin cleared by SEC.
— Potential to bring dormant value locked by Bitcoin hodlers into Defi ecosystem.