An overview of The Blockstack Network: mining, delegating and stacking Stacks; receiving bitcoin as a reward; providing stacks pooling services and how you can get involved.

Proof of Transfer (PoX) – the game changing blockchain protocol

Stacks introduces a new consensus blockchain protocol called Proof of Transfer (PoX). This protocol allows Stacks miners to use bitcoin’s value as a replacement for the physical computers that consume electricity in the Proof of work (POW) process. But instead of simply “burning” bitcoin to mint new Stacks, miners transfer the bitcoin to Stackers who help secure the Stacks blockchain. In effect, Stackers are able to stack sats (bitcoin) on autopilot more efficiently than most diehard bitcoiners.

On the other hand, miners are rewarded Stacks tokens for minting new stacks. And since Stacks is needed to secure the network, miners are banking on the increase in value of the Stacks (STX) token in relation to the amount of bitcoin they are transferring to Stackers. It becomes a game of short term arbitrage for stack miners similar to bitcoin mining.

Additionally, most miners will likely participate in stacking to collect bitcoin and at the same time earn stacks through their mining efforts. Nothing prevents this sort of double dipping and it may prove to be extremely beneficial to the overall network if people have skin in the game on both sides of the mining equation.

Bitcoin as fuel and reward

The key element that sets Stacks apart from other blockchains is it efficiently converts validating Stacks transactions and securing the decentralization of a user owned internet into a bitcoin reward. It’s a win – win for Stackers and Bitcoiners because both communities are converting, persevering and transferring energy into value expressed as bitcoin. By stacking sats, Stackers are further expanding bitcoin’s usage and increasing its value. And most of all, Proof of Transfer introduces a new and powerful incentive to buy and hold Stacks: the ability to earn bitcoin when they help secure the Stacks blockchain.

Stacks Delegators and Pooling Service Providers

Another important player in the ecosystem is the Stacks pooling service providers. These providers allow stackers with less than 0.02% of the circulating Stacks tokens, a chance to delegate and pool their Stacks with other community members to earn bitcoin. The Stackture team will launch a Stacks pooling service called StackedSats later this year. Sign up here for more details.

Leveraging Bitcoin’s security

It’s safe to say that bitcoin has won the race to replace the dollar among other cryptocurrencies. This tremendous amount of responsibility means that other issues like digital identity and online privacy concerns that require decentralized solutions can reside on other blockchain protocols. Many teams are working on these decentralized solutions that bitcoin shouldn’t need to solve since being the next global currency is hard enough.

Bitcoin’s role as the Mothership that secures a decentralized internet platform like the Stacks blockchain protocol is a nod to the existing architecture of current layered internet protocols. The Stacks architecture also assigns bitcoin as the final arbiter of settlement disputes for Stackers. And that’s because the Stacks protocol is anchored to bitcoin and it also uses the same mining and halving schedule as bitcoin. Stackers will be able to trace their transactions back to the bitcoin legacy chain if need be.

And by leveraging the bitcoin network, Stacks allows developers to focus on and build decentralized and secure apps that address and solve issues such as the current lack of online privacy and digital identity rights.

Why Stacking matters?

Stacks is made up of a community of people who care about a decentralized internet that champion the control of one’s digital identity and the right to online privacy. These are the main values that shape and drive the applications being built in the Blockstack ecosystem. Stacks projects like Blocksurvey provides end to end encrypted data sharing surveys that protect the privacy of its users. And Runkod, another popular app, provides a decentralized censorship resistant hosting platform alternative to mainstream options. There is also a newly launched platform called Freehold which rewards hodlers of bitcoin, Stacks and other altcoins with bitcoin or Stacks tokens for promoting and growing the awareness and adoption of cryptocurrencies in the wider community.

Check out the other 400+ Stacks app here

Get involved

Here’s how you can join the Blockstack community:

Visit the Blockstack website

Join the Blockstack discord group here

Check out the Stacks testnet mining node here

Follow Blockstack on Twitter @blockstack

Follow Stackture on Twitter @stackture

And don’t forget to sign up for updates to our Stacks analytics tools and pooling service at here

Guest blogger:

The Stackture Team – We create tools and services that provide actionable insights to promote and grow the Stacks ecosystem.

The views and opinions expressed in this article are those of the author and do not necessarily reflect the position of Fintech Recruiters Inc.

#staking, #bitcoin, #Blockstack, #Stacks, #Masternode, #stackingsats, #crypto, #blockchain #decentralized #defi

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