HomeBitcoin ProtocolsStacks Blockchain Project Aims to Introduce Smart Contracts to Bitcoin

Stacks Blockchain Project Aims to Introduce Smart Contracts to Bitcoin

-

Blockchain project Stacks has released a whitepaper outlining a new digital asset called “Stacks bitcoin” (sBTC) that aims to make Bitcoin fully programmable. Bitcoin’s more straightforward scripting language currently limits what developers can create on the platform.

Stacks, an existing smart contract platform, hopes to overcome these limitations by introducing sBTC, a digital asset pegged at a 1:1 ratio with Bitcoin and can be used to create smart contracts on the Stacks platform. sBTC can also be converted back into Bitcoin.

The Stacks protocol currently uses a consensus mechanism called “proof of transfer,” where anyone can be a miner or “stacker.” Miners earn STX rewards for mining Stacks blocks but must first post Bitcoin to earn mining privileges.

This Bitcoin is then distributed as a reward to stackers who maintain a copy of the Stacks ledger. In the proposed sBTC system, users send regular Bitcoin to a wallet controlled by stackers, which mints an equivalent number of sBTC that can be used in smart contracts on Stacks.

To get their Bitcoin back, users return sBTC to the wallet, and stackers sign these “peg out” requests and release the equivalent amount of Bitcoin back to the users while also burning the corresponding sBTC.

stacks sBTC

Stacks co-founder Muneeb Ali believes using STX to incentivize stackers to sign peg-out requests is a significant advantage, as it means there is no company in the middle. Users can pick their own stackers based on their level of trust. However, this also means an extra token, which some may see as a drawback.

The sBTC system is being implemented and will be formalized under Stacks Improvement Proposal (SIP) 21. Ali estimates that it will be eight to nine months before it is ready for release.

Matt Goldberghttp://bitcoinmagnates.com
Matt Goldberg is a bitcoin early adopter and experienced software developer. His work has been used by large mining groups and bitcoin-oriented hedge funds.

LATEST POSTS

What is Microstrategy bitcoin strategy

Fast Facts Acquired 2,395 BTC for ~$42.8mm at an average cost of $17,871 / BTC between November 1, 2022, and December 21, 2022 Sold ~704 bitcoins for...

What happened with Bitcoin Mining market in 2022

2022 started as a fruitful year for Bitcoin and Ethereum miners, as prices for bitcoin and ether were just slightly below their ATH mania in 2021. However, as the year progressed, many miners soon ran into trouble as global macro and crypto markets collapsed from central bankers’ desperate attempts to maintain control of runaway inflation through various monetary policies and a significant escalation in the Russo-Ukrainian war.

Stacks Blockchain Project Aims to Introduce Smart Contracts to Bitcoin

Blockchain project Stacks has released a whitepaper outlining a new digital asset called "Stacks bitcoin" (sBTC) that aims to make Bitcoin fully programmable. Bitcoin's more straightforward scripting language currently limits what developers can create on the platform.

Bitfarms CEO Steps Down, COO Takes Over

Bitfarms, a Canadian bitcoin mining company, has announced the departure of its CEO, Emiliano Grodzki, effective immediately. President and Chief Operating Officer Geoffrey Morphy has been named as his replacement. Grodzki, who co-founded the company in 2017 with Nicolas Bonta, will remain a director on the board. Bonta will become chairman of the board.

Follow us

118FansLike
3,062FollowersFollow

Most Popular

spot_img