Stacks, formerly Blockstack, the open-source network for building decentralized applications, has an ambitious vision to bring smart contracts and DeFi to the Bitcoin (BTC) network.
On Thursday, the developer community celebrated the launch of Stacks 2.0, a bridging toolkit that allows developers to build on Bitcoin.
Stacks 2.0 is described as a layer-1 blockchain with a native bridge to Bitcoin. The toolkit is supported by the Clarity smart contract language, a joint open source protocol supported by Blockstack and Algorand.
From an industry perspective, the launch of Stacks 2.0 is important for several reasons. On the one hand, it extends Bitcoin’s scripting language, allowing developers to build smart contracts and other innovative tools on top of the blockchain. By bringing more use cases to Bitcoin, Stacks 2.0 could potentially dilute the value proposition of competing chains. This could secure Bitcoin’s already dominant position as the world’s largest blockchain and cryptocurrency.
Blockstack told Cointelegraph that it is celebrating the launch with a one-day virtual event headlined by several industry partners, including Foundry, OKCoin, Staked, Blockchain.com, Blockfolio, Floating Point Group and Blockdaemon.
Muneeb Ali, Co-founder of Stacks and CEO of Hiro PBC, said:
“The launch of Stacks 2.0 marks a future that many thought was not possible, a future where people can build on Bitcoin and bring their innovative ideas to the Bitcoin network, unlocking its full potential.”
The unveiling of Stacks 2.0 follows months of testing and auditing around Proof-of-Transfer, or PoX, the protocol’s new consensus mechanism. Like a new mining system, PoX used the Proof of Work consensus to create new blockchains rooted in Bitcoin’s security.
Ali says PoX “has the potential to enable an economy around Bitcoin and actually secure the future of the Internet on Bitcoin’s blockchain.”
Stacks 2.0 tries to complete the circle of Bitcoin. As the flagship cryptocurrency, Bitcoin has secured a market cap of nearly $ 700 billion based almost entirely on its store-of-value characteristics. Along the way, numerous projects have been launched to fill Bitcoin’s perceived void – namely smart contracts, decentralized applications and, more recently, DeFi.
Blockstack believes its innovation can help activate the hundreds of billions trapped in passive Bitcoin capital:
“In the future, this huge amount of liquidity could be used to build native Bitcoin DeFi applications rooted in Bitcoin’s security and in a language (Clarity) designed to be predictable and secure, both advantages over the current DeFi tooling. “
While Bitcoin has carved a strong story like digital gold, the Stacks 2.0 vision seeks to give more utility to the original cryptocurrency, which could broaden the use case to more than just a store of value.