About Blockstack (STX): Blockstack is building software fora user owned internet where people own their identity and their data. Applications built with Blockstack provide users a new standard of privacy as well as ownership of their digital property. With a Blockstack username, users have a single sign-in they can use to access all 400+ applications on the network. To top it off, they have an amazing set of tools that make it super easy for developers to build these apps using Javascript. Stacks (STX) is Blockstack’s native token used to participate in the network and was the first cryptocurrency that was made available via a regulated sale qualified by the SEC.
Fundamental Data: STX’s FCAS is currently at 730. Its strength is its Developer Behavior, ranked an A with a score of 891. This can be explained by the fact that the team has been hard at work developing its new blockchain: Stacks 2.0.
The Stacks 2.0 Blockchain
Announced in early February, Blockstack is rolling out a new consensus mechanism called “Proof of Transfer” (PoX). The new blockchain, currently on testnet, presents a new use case for Bitcoin: Miners will need to buy BTC and post it with any block they want to mine.
Stacks miners will transfer BTC via PoX, and in doing so, have a shot of producing the next Stacks block, which will give them a coinbase of 500 STX, plus transaction fees. STX holders can earn that BTC by participating in consensus. This leverages the security of Bitcoin’s PoW chain but provides a more complex feature set to enable Web 3.
“PoX can help to solve a bootstrapping problem for new blockchains,” the whitepaper states. “Participation rewards in a separate, potentially more stable, base cryptocurrency can be a better incentive for encouraging initial participation than offering participation rewards in a new cryptocurrency.”
Analysis: Blockstack’s FCAS score will likely increase with the release of Stack 2.0. Bitcoin is still the world’s most popular cryptocurrency, and this new consensus mechanism presents a whole set of new use-cases for it. As the team highlights, “PoX can give incentives to earn Bitcoin rewards to participants of such new blockchains. Such Bitcoin rewards were not possible before PoX. These rewards can potentially be used for use cases like consensus participation, ecosystem developer funds, incentives for specific players, etc.”