Build DeFi and Smart Contract On Bitcoin With Stacks
Bitcoin is currently an asset with $1 trillion in value and still growing. Some even say we can expect $9 trillion on the horizon. However, the only veritable use case for this asset class has been as a store value. Because of trade-offs in the design of Bitcoin, it can’t handle the frequency and speed of decentralised finance and we can’t build smart contracts on it.
However, a layer 2 protocol can be built on it to make it more useful than just being a store of value assets. That is easier said than done though.
To get this done, Dr Muneed Ali and his team started working on what we now know as Stacks (formerly Blockstacks) in 2013. The goal was to build a protocol on the Bitcoin blockchain that will allow decentralised application and smart contract of any kind to be built on Bitcoin, leveraging its security and network value. Stacks was launched in 2017 and then Stacks 2.0 was launched in early 2021 which is more robust and may even be seen as an entirely new application instead of an improvement to its 1.0 version.
Below, I bring you resources that can help you learn more about the Stacks ecosystem.
- The Stacks Whitepaper
- Learn about how Stacks 1.0 works from here
- Watch this quick overview by Coin Bureau on YouTube that chronicled the history of Stacks up to the launch of Stacks 2.0
- Within the Stacks ecosystem, you can earn Bitcoin by Stacking your STX. Learn how to do that here.
- Understand how to Stack STX using a cold wallet.
- Listen to Muneeb Ali talk about the Stacks ecosystem.
Largely, I am optimistic about the future of this project because it fits into my model of the inevitable future.
The concept of the inevitable future is premised on the fact that a kind of future will become mainstream no matter what. And it is only a question of when and by who. The team at Stacks has shown enough capability to usher in this future.
This is only the first of the kind of article I will be writing about Stacks Blockchain and its ecosystem. Make sure to check again or subscribe to my newsletter so you don’t miss future updates.