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When the founder of the Ethereum network Vitalik Buterin realized that Bitcoin could not support smart contracts efficiently, he came up with the idea to create Ethereum. Similar to Buterin`s logic, the founders of the Monero and Zcash projects were eager to develop coins that would support a particular privacy level for the users, as they were not satisfied with the degree of privacy Bitcoin offered. Thus, the privacy issue was solved as Monero and Zcash were created. They are both Bitcoin forks with improved privacy.
So, even if it is not likely that we would face some really revolutionary smart contracts and solid privacy in Bitcoin, there are some other projects that are coming closer to that point, and one of them is Blockstack. The technology brings smart contracts and privacy to Bitcoin while linking its blockchain to Bitcoin blockchain. Let’s talk about this project and its features in-depth.
What Is Blockstack?
The project we talk about in this article is aimed at building an open-source network on top of Bitcoin. Blockstack is supposed to operate as the application layer, which tech giants like Google, Facebook, and Microsoft now occupy. As stated above, Blockstack`s blockchain is tied to Bitcoin`s blockchain. Thus, all operations within Blockstack are verified on the Bitcoin blockchain.
Furthermore, Blockstack allows developing decentralized apps and smart contracts running on the Bitcoin blockchain through an extension. Thus, when users operate with dApps and smart contracts created based on the Bitcoin blockchain, they obtain total control and ownership for their data. That indicates a higher degree of privacy and safety compared with the way users` information is now stored on the Internet by such tech giants we mentioned before.
STX Token
The Blockstack project also features a native token called STX. The token is burned in order to register digital assets, users’ identities, and smart contracts in the network. Although, initially, the project had 1.32 billion tokens totaling, STX coin is inflationary and does not have any fixed supply. It is used for paying miners rewards.
Pillars of the Blockstack ecosystem:
- Stacks Blockchain – the blockchain itself
- Gaia – a file system wherein users independently choose an option for data storage – either the cloud or local.
- Blockstack Authentication – the system of users identification with a unique login and password
- Blockstack SDK – a background for developing decentralized applications.
- Blockstack dApps Market – a marketplace that allows developers to sell ready-made solutions and applications and receive STX tokens
- Blockstack Browser – a blockchain browser that prevents users from uploading sensitive data to servers. Provides data safety.
- Stacks Wallet – a wallet for storing and sending STX tokens.
- Blockstack APP – mobile application for devices running on Android and iOS.
- Stackit – a manual covering all aspects of the creation of blockchain applications.
Blockstack (Stack) Pros and Cons
Let’s begin with advantages:
- Large development team with scientific industry experience.
- The project has been operating since 2016 and adheres to the US regulations.
- A wide range of different work products, including a browser, wallet, and marketplace.
- Support for many crypto exchanges.
- A fund created for the financial support of other blockchain startups that develop applications running on Blockstack.
Disadvantages:
- Early investors (ICO participants) can manipulate the STX price as their investments have been multiplied by over 12,400 times. For example, in 2017, the price was $0.00012 and in 2021 it achieved the mark of $1.49.
- High volatility of the STX rate because of the insufficient trading volume.
Where to Buy and Store Blockstack?
As of early autumn 2021, STX is ranked 65th among the largest cryptocurrencies in terms of capitalization. Its current market cap reaches $1.87 billion. For this reason, there should be no problems with buying STX to BTC. The token is backed by such exchange giants as Kucoin, Binance, OkCoin, and Hoo. The largest trading volume can be found on Binance, so we recommend using it. Besides, STX may be found on decentralized exchanges, like Godex.io.
The platform boasts reasonable fees and transparent conditions. The site neither requires registration nor KYC verification. The platform does not store users’ funds on its servers. Currencies just move between the users. That means a high degree of security and protection from hacker attacks. The service neither stores users’ data nor money. That provides the highest level of anonymity for those who prefer to buy and sell crypto without disclosing personal information.
The site`s interface is easy enough so that even a beginner will cope with it. Swapping coins is relatively fast, depending on the network load and the chosen currency. Godex boasts a wide range of crypto available and always offers the best exchange rates throughout all the popular exchanges on the internet.
To convert STX to BTC, use the Godex calculator. That tool helps proceed with quick and profitable crypto swaps conveniently. Choose the needed assets in the calculator, which allows swapping about 200 crypto assets. One of the examples of another available pair is a rather popular XEM to BTC.
The fee you have to pay will be known before the operation starts. When you enter the asset you want to sell and the one you are willing to purchase, the calculator displays the fee size and number of coins you need and receive. So, you will learn how much you will have to pay beforehand, and you will face no other commissions or hidden fees.
Conclusion
Over time, more and more crypto projects emerge in the market, solving more issues that the Bitcoin network faces and does not solve. Such projects as Monero and Zcash coped with the privacy issue of Bitcoin, while Ethereum enabled smart contracts on the network. Blockstack crypto project comes to help with both privacy and smart contracts, linking its network to Bitcoin`s network and operating as the application layer, as well as allowing building decentralized applications and smart contracts on top of the Bitcoin blockchain.
