Over the past 48 hours, despite the turmoil in the digital asset sector, certain projects have shown not just resilience, but an upward trajectory. One such promising example is the Bitcoin scaling solution, 'Stacks (STX)', a project aiming to integrate smart contracts into the world's largest and most secure network, Bitcoin.
Traditionally, Bitcoin and smart contracts or decentralized applications (dApps) haven't been synonymous. This gap was filled by Ethereum, leading to its rise due to increased functionality at a time when Bitcoin could not offer the same. However, Stacks is challenging this long-held notion, proving that Bitcoin can indeed support smart contracts. Stacks, a hybrid layer 1/2 network, uses a coding language called 'Clarity' to leverage Bitcoin's key attributes while enhancing its functionality.
Stacks' goal is straightforward – bring scalability and smart contracts to Bitcoin. If successful, a Bitcoin/Stacks combo could render most competing projects obsolete.
Given the recent labelling of top projects like Polygon (MATIC), Cardano (ADA), Solana (SOL) and more as securities by the SEC, investors have started paying attention to projects like Stacks that offer similar capabilities without the regulatory ambiguity. The project's decentralized nature further reduces the chance of it being classified as a security.
STX tokens have seen an approximately 16% gain over a 24-hour period, as news of the SEC charging Coinbase with numerous securities violations emerged. This price gain positions STX on the verge of becoming a top-50 project by market cap, with significant potential for growth.
However, Stacks is not alone in its mission to scale Bitcoin. Other solutions, such as the Lightning Network and the Liquid Network by Blockstream, are also in the race. Yet, the recent popularity of Stacks and the potential it holds signifies a bright future for Bitcoin, as the choice between scalability, security, and decentralization becomes less of a dilemma.
