Stacks is a layer-1 blockchain solution that is designed to bring smart contracts and decentralized applications (DApps) to Bitcoin (BTC). These smart contracts are brought to Bitcoin without changing any of the features that make it so powerful — including its security and stability. Stacks 2.0 is a layer-1 blockchain that connects to Bitcoin and brings smart contracts and decentralized apps to it. Smart contracts and apps developed on the Stacks platform are natively integrated with the security, stability, and economic power of Bitcoin.
The DApps are open and modular, meaning developers can build on top of each other's apps to produce features that are simply not possible in a regular app. Since Stacks uses Bitcoin as a base layer, everything that happens on the network is settled on the most widely used arguably the most secure blockchain in operation — Bitcoin.
The platform is powered by the Stacks token (STX), which is used for fueling the execution of smart contracts, processing transactions, and registering new digital assets on the Stacks 2.0 blockchain. Stacks (STX) tokens are the native tokens on the Stacks 2.0 blockchain. The smallest fraction is one micro-STX. 1,000,000 micro-STX make one Stacks (STX).
Stacks take what makes Bitcoin so powerful, and extend it with additional functionality, without needing to fork or change the original Bitcoin blockchain. It does this by connecting directly with the Bitcoin blockchain through its proof-of-transfer (PoX) consensus mechanism, which has miners pay in BTC to mint new Stacks (STX) tokens. Moreover, STX token holders can also stack (not stake) their tokens to earn Bitcoin as a reward.
Stacks introduces a new smart contract programming language known as Clarity, which is designed to be both secure and easy to build thanks to its unambiguous syntax. This smart contract-centric programming language is also used by the Algorand (ALGO) blockchain.