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Understanding Stacks (STX): Bitcoin’s Layer-2 Solution for Smart Contracts
Rebeca Moen
Apr 11, 2025
Stacks (STX) is transforming the way we think about Bitcoin by introducing a layer-2 solution that enables smart contracts and decentralized applications (DApps). This innovative approach leverages Bitcoin’s inherent security while expanding its functionalities through a unique network. The Stacks network takes pride in being a transformative layer-2 solution for Bitcoin, integrating the capabilities of smart contracts and DApps into the Bitcoin blockchain.
As an independent layer, Stacks allows developers to build on Bitcoin without altering its core structure, providing an extended environment that capitalizes on Bitcoin’s decentralization and trustless nature. Stacks introduces an independent token, STX, which incentivizes block production and network maintenance, distinct from Bitcoin’s primary chain. This model addresses the need for incentivized validation, maintaining Bitcoin’s simplicity at the base layer.
Unlike other scalability solutions like the Lightning Network, Stacks maintains a permanent state, essential for applications requiring data consistency, such as smart contracts, contrasting with Lightning’s transaction-focused, ephemeral design.
Source: https://Blockchain.News/news/understanding-stacks-stx-bitcoin-layer-2-solution
