About
Stacks is a Bitcoin Layer-2 (L2) blockchain that brings smart contract functionality and decentralized applications (dApps) to the Bitcoin network without altering its original code. Founded by Muneeb Ali and Ryan Shea in 2017 as Blockstack, the project became a regulatory landmark in 2019 by conducting the first-ever SEC-qualified token offering. Stacks operates on a "can’t be evil" philosophy, aiming to build a user-owned internet by leveraging Bitcoin's unmatched security and capital.
The protocol is powered by a unique consensus mechanism called Proof of Transfer (PoX). In this system, Stacks miners do not burn energy; instead, they "transfer" (spend) Bitcoin to participate in leader elections. The BTC spent by miners is then distributed to Stackers, STX holders who lock their tokens to secure the network. This creates a rare symbiotic relationship where users earn native Bitcoin yield for participating in the consensus of a secondary layer. For developers, Stacks uses Clarity, a decidable smart contract language designed for safety and predictability, preventing many common vulnerabilities found in other smart contract environments.
By early 2026, Stacks has completed its transition into a high-performance L2 through the Nakamoto Release and subsequent Satoshi Upgrades. These updates decoupled Stacks’ block production from Bitcoin’s 10-minute intervals, enabling "fast blocks" with sub-second latency while still settling every transaction with 100% Bitcoin finality. The introduction of sBTC, a trustless, decentralized 1:1 Bitcoin-backed asset, has further transformed the ecosystem by allowing Bitcoin to be used directly in DeFi protocols for lending, borrowing, and stablecoin minting. With institutional support from 21Shares’ Stacks ETP and Grayscale’s Stacks Trust, the protocol now serves as the primary bridge between institutional Bitcoin capital and programmable Web3 utility.
