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Can any of you tech savvy people give me some insight on a project that I have really been debating on investing in? Stacks STX From my understanding, it’s a Bitcoin layer 2, but technically speaking it is a Layer 1. It’s it’s own blockchain that’s uses POX (proof of transfer?) Basically bringing smart contracts to Bitcoin. It has an upgrade coming out soon (Nakamoto upgrade) which is crucial for it to operate correctly at faster speeds? What I thought was really cool about it, is I believe it is SEC approved? And also, when you stake STX you receive BTC. Any advice is appreciated!
It's controversial with some maxis since it uses a gas token but in this case it's not quite so black and white this time. That's because it uses a consensus called POX (proof of transfer) to run in parallel with bitcoin's blockchain. Stacks miners have to send bitcoin to specific addresses to improve their chances of mining a block. These addresses burn some bitcoin and others distribute a bitcoin yield to the people who are Staking (called stacking in this case) the STX token. So in that way the more popular it becomes the more miners there will be and this should drive up demand for bitcoin as well. I think that's how it works but someone correct me if I'm mistaken. Since bitcoin does not do complex smart contracts natively on L1 I think this is a net positive to have a smart contract blockchain within the bitcoin ecosystem to take market share from the other ones out there. I like.
Just for fun I will try to answer these with as many of Satoshi's quotes as possible. **Block Subsidies over time-** “I’m sure that in 20 years there will either be very large transaction volume or no volume.” “In a few decades when the reward gets too small, the transaction fee will become the main compensation for nodes.” -SN Transaction costs for layer 1 will be much higher in the future for the base layer as the network sees more usage over the next 20+ years. **Introduction of Quantum -** This is theoretical at this point but ok. “If SHA-256 became completely broken, I think we could come to some agreement about what the honest block chain was before the trouble started, lock that in and continue from there with a new hash function.” **Platform is Only Self Sustaining not due to defi or other use cases** False, this is a common shitcoin narrative ignoring significant development in the bitcoin ecosystem. It's ignored because nearly all shitcoins would be redundant if people did their research on this. “Once it gets bootstrapped, there are so many applications if you could effortlessly pay a few cents to a website as easily as dropping coins in a vending machine.” -SN Bitcoin's base layer has been bootstrapped and is the most secure computer network in the world. You can only create digital scarcity once. There will only be one bitcoin. Layer 1.5 - Stacks - this is a smart contract on bitcoin that requires POX (proof of transfer) which increases demand for bitcoin as miners are required to send btc as part of the consensus protocol interacting directly with bitcoin's base layer. You can earn yield for "stacking" stacks in bitcoin. released 2021 layer 2 - the lightning network, there are apps like sphinx chat that enable encrypted chat and podcasting, streaming sats easily from your node. transactions are simple and instant. layer 3 - impervious AI - decentralized VPN and browser. releases in 2022 future layers - RGB smart contract platform, unknown release date Sidechains - RSK, Liquid defi apps - arkadiko and atomic finance [https://atomic.finance/blog/an-atomic-pivot/](https://atomic.finance/blog/an-atomic-pivot/) ​ Others I'm sure I'm forgetting. **Environmental Concerns -** “It’s the same situation as gold and gold mining. The marginal cost of gold mining tends to stay near the price of gold. Gold mining is a waste, but that waste is far less than the utility of having gold available as a medium of exchange. I think the case will be the same for Bitcoin. The utility of the exchanges made possible by Bitcoin will far exceed the cost of electricity used. Therefore, not having Bitcoin would be the net waste.” ​ Environment concerns with regard to bitcoin are overblown and sensationalized in my opinion but you'll want to read Lyn's info on this as she cites a lot of great sources and goes into a ton of depth in her analysis. [https://www.lynalden.com/bitcoin-energy/](https://www.lynalden.com/bitcoin-energy/) I hope that helps to get you started with you bitcoin research. I'd also recommend that you read **The Bitcoin Standard** to understand the bitcoin thesis for money. We are on trajectory from Gresham's law to Their's law over time. This rabbit hole is deep AF.
The difference is that eth uses a turing complete language for programmable smart contracts and more flexibility. But the problem is that this compromises security which is why hacks/exploits like the DAO and others continue to occur in that ecosystem. At least that's what I've read but perhaps someone can add some more color to the conversation. Better to use something like Stacks with clarity smart contracts within bitcoin's ecosystem. Safer. Plus using stacks increases demand for bitcoin since the miners need to buy it for POX consensus.
It will technically be a little earlier than that because of people losing bitcoin and Stacks which burns bitcoin as part of its POX mechanism. Most of the btc goes to "stackers" as yield but some is burned.
This whole administration is a FKINGLIE. A POX ON ALL OF THEM!
tldr; Arkadiko, a DEX (Decentralized Exchange) built on Stacks has announced that its own version of self-repaying loans is in the works, possibly launching at the end of October. The collateral must be STX token. The yield comes from stacking, Stacks’ consensus mechanism called Proof-of-Transfer (POX). *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
You can also stake your GOUT to earn some POX on the side
I dont get you wrong, appreciate your sum up and comparison :) i like this community because of different point of views. I just think non turing complete has is pro in more secure coding, because it is easier to see the output of a code then a turing complete ( especially recursive functions). STX is interesting because you can earn BTC as well as STX ... depending on what you want to achieve. I am not invested in STX , i just thought it was the first mover in bringing smart contract to BTC , but you are showing me a counterproof that my thoughts are wrong :D I just found them in AWS Services , they are providing a service as Blockstacks and they have actually 500 apps built on stacks which is impressive. I know that Ethereum community is big and many devs dont want to rebuild an app or learn a new language for sure. It is more attractive for new developers who want to start building a new dapp. I jsut dont understand what you mean with this sentence " if the Bitcoin mempool becomes congested, then so does STX " , can you explain me ? I also have no clue about merged mining , need to read through doc to discuss about this point. I just found proof of transfer (POX) found by blockstacks which is mining STX whenever a BTC Block is mined and now with 2.0 they have something like microblock in a block which scale for more transaction in a block. All in all it is the right way to build around BTC rather than develop the wheel from scratch. Thanks for RSK , but still curious why it has such a low MC.