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Bitcoin (BTC) NFT with stacks – why STX is going through the roof

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Bitcoin (BTC) NFT with stacks – why STX is going through the roof

Stacks (STX) enables the use of smart contracts on Bitcoin (BTC). For the first time, the project has now also published BTC-based non-fungible tokens (NFT).

Stacks is a Layer 2 blockchain, the goal of which is to enable smart contracts and decentralized applications on Bitcoin . Smart contract functionality is transferred to the BTC blockchain without the need for a fork . Therefore, there is no need to change or adapt the Bitcoin network and all applications that run on Bitcoin via STX can benefit from the security and stability of the Bitcoin blockchain . The focus is on the STX token from Stacks and is used for executing smart contracts and processing transactions on stacks.

How do smart contracts work on Bitcoin?

The Stacks Blockchain creates a direct connection to the Bitcoin Blockchain using the so-called Proof-of-Transfer (PoX) consensus mechanism . This enables every transaction that is carried out on the Stacks Blockchain to be checked and traced on the Bitcoin Blockchain.

This makes it possible for smart contract applications – such as non-fungible tokens or decentralized finance (DeFi) – to run on stacks and at the same time be secured at all times by the BTC blockchain.

What applications are there already today?

There are already several decentralized applications on the official Stacks website that can be used with the STX Hiro Wallet . So far, the Stacks ecosystem has been very small compared to Ethereum, the Binance Smart Chain or Solana and is currently still relatively manageable. Nevertheless, there are two areas of application in particular that have already attracted a lot of attention.

Miami shows the way: City Coins with stacks

City Coins are cryptocurrencies that can be issued by communities to improve their cities. They can be mined by anyone, with 70 percent of the profit going to the miners and 30 percent of the mining income going to the respective city. The mined City Coins, in turn, can be staked on stacks and thus accumulate Bitcoin.

The first coin of its kind is the MiamiCoin (MIA) , which was published by the US city in the state of Florida. Miami is considered a crypto hotspot worldwide. Mayor Francis Suarez even wants to make Miami the Bitcoin capital of the world. So far, everything seems to be going according to plan on this mission. Since August, the Miami City Wallet was over 17 million US dollars to take.

In the future, the income generated by the MiamiCoin will be used to improve the city. Specifically, Suarez wants to use the money for education, affordable housing and possibly even to replace taxes.

NFT on Bitcoin stacks makes it possible

One of the main reasons Stacks has attracted so much investors lately is likely to be related to the release of several NFT projects.

In the last few weeks more and more NFT projects have started on stacks . For example, at the beginning of this week, the so-called Bitcoin Birds collection was completely sold out within a few hours . The increased demand for the “Bitcoin NFT” has meant that the demand for STX has also increased. This is one of the reasons why the STX price has grown so strongly in the last few days.

Bitcoin STX course

In the last 30 days alone, Stacks has increased by over 56 percent. At the time of going to press, a single STX token costs just under $ 2.25.

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