STX

Stacks (STX) is a Layer 2 blockchain solution designed to enable smart contracts and decentralized applications on top of Bitcoin without altering the Bitcoin protocol itself. STX operates as the native token of the Stacks network, which uses a novel consensus mechanism called Proof of Transfer (PoX) to anchor its security to Bitcoin's underlying infrastructure. The primary use case for Stacks is to unlock Bitcoin's dormant capital and expand its utility beyond transactions, allowing developers to build decentralized applications that leverage Bitcoin's immutability and security while benefiting from programmable smart contract functionality. Key technical features include the ability to settle transactions on the Bitcoin blockchain, compatibility with Bitcoin's existing developer tools and standards, and a tokenomics model where STX holders can participate in consensus and earn Bitcoin rewards through staking. Stacks is particularly notable for bridging the gap between Bitcoin's security and simplicity with the programmability of smart contract platforms, positioning itself as infrastructure for bringing complex decentralized finance and web3 applications to Bitcoin while preserving its core characteristics as a secure, distributed ledger.