What is Stacks (STX)?

Bitcoin revolutionized the world as the first cryptocurrency, providing a secure and decentralized way to transfer money. But while Bitcoin remains the most trusted and stable blockchain, it was never designed to do more than that. Unlike blockchains such as Ethereum or Solana, Bitcoin lacks the programmability needed to power smart contracts, decentralized applications (dApps), and the broader Web3 revolution.

That’s where Stacks (STX) comes in.

Stacks supercharges Bitcoin, turning it into more than just a store of value. As a layer-2 blockchain built on top of Bitcoin, Stacks introduces the tools for creating decentralized finance (DeFi), non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs) while keeping Bitcoin’s legendary security intact.

The History of Stacks

The project began in 2013 under the name Blockstack, driven by co-founders Muneeb Ali and Ryan Shea. Their mission was to decentralize the internet and return control to users by leveraging the strength of Bitcoin.

In 2018, Blockstack launched its testnet and mainnet, introducing the first steps toward a more programmable Bitcoin.

Then by 2020, the project underwent a transformation, rebranding as Stacks and unveiling the Stacks 2.0 Mainnet. Stacks then introduced its unique Proof-of-Transfer (PoX) consensus mechanism, directly anchoring the blockchain to Bitcoin.

The project’s mantra, "Can’t Be Evil," reflects a commitment to designing systems that inherently prevent misuse, in stark contrast to the centralized control of big tech. Stacks has since evolved into a robust ecosystem for Bitcoin-based applications.

STX: The Native Token

STX is the native cryptocurrency of the Stacks blockchain, enabling several essential functions within the ecosystem:

Pay Transaction Fees: STX is required for processing transactions on the network.
Deploy Smart Contracts: Developers use STX to create and execute smart contracts.
Register Digital Assets: Secure assets like NFTs or Web3 domains on the blockchain.
Earn Bitcoin Rewards: By locking STX in a process called stacking, users can earn BTC while supporting network security.

Buy and Sell Stacks (STX) in a Crypto IRA at iTrustCapital

For those looking to buy and sell Stacks (STX), platforms like iTrustCapital provide access to a tax-advantaged Crypto IRA*, combining the growth potential of digital assets with the benefits of a retirement account.

Click here to sign up today!

*Some taxes may apply.

DISCLAIMER

This article is for information purposes only. It does not constitute investment advice in any way. It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.

iTrustCapital is a digital asset IRA software platform. It is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrustCapital is not associated with and has no direct relationship with STX. iTrustCapital is not affiliated with and does not endorse any particular digital asset, precious metal or investment strategy.

Cryptocurrencies are a speculative investment with risk of loss. Precious metals are a speculative investment with risk of loss. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.

Some taxes and conditions may apply depending on the type of IRA account. Investors assume the risk of all purchase and sale decisions. iTrustCapital makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrustCapital does not provide legal, investment or tax advice. Consult a qualified legal, investment, or tax professional.

iTrustCapital makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) or omissions from the information contained herein. iTrustCapital disclaims any and all liability to any party for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this information, which is provided as is, without warranties.