As blockchain technology continues to find applications outside of the crypto sphere, it was only a matter of time before it became relevant to want to overhaul the entirety of the Internet as we know it. A group of Princeton-trained computer scientists resolved to create a system which would make this possible: Blockstack (STX) and its token, which are certainly gaining momentum in a context where data management is a growing concern.
Our Blockstack guide delves deeper into this fascinating decentralized computing network.
The Blockstack (STX) cryptocurrency: Introduction and definition
The Blockstack (STX) philosophy is that users should be given the possibility to own as well as control their data stored on the Internet. Created to adapt the concept of blockchain to all areas of the web, Blockstack aims to put in place a whole ecosystem where decentralized applications can thrive. Instead of having developers rely on third-party servers to interact with their data, the system essentially replaces the trust points that typically allow users to connect with the information through blockchains.
The main reason why the traditional way of handling data online is viewed as problematic is that not all connections are perfectly secure, and breaches therefore happen on a very regular basis. While the system was thought up and created in 2013, Blockstack news has attracted more attention as of 2019, when the U.S. SEC (Securities and Exchange Commission) approved the project’s token offering of $28 million with no precedent.
How does Blockstack (STX) work?
As one might be able to guess, the ambitious goal of replacing the Internet altogether could not even be contemplated without a very solid foundation. Blockstack (STX) therefore contains many components and protocols, all of which contribute to giving users entire control over their data and identity. Thanks to this system and to a comprehensive set of resources, users can go from Zero to DApp in as little as one hour. Some of the most prominent elements the system is known for are the Stacks Blockchain, the STX Token, or Stacks Token, its user-controlled storage solution, Gaia and the Blockstack Authentication feature.
The Stacks Blockchain
The entire Blockstack (STX) system is built upon the Stacks Blockchain, which coordinates the global consensus and layers and puts the system’s native token into action. The consensus is maintained thanks to a mechanism of Tunable Proofs which allows the chain to implement a leader election. This means that various mechanisms can be used and adapted so that their relative weight matches the needs of the blockchain. This is how Blockstack integrates the hashing power of proof-of-work-type blockchains.
Its own protocol involves both a proof-of-work consensus and Bitcoin’s proof-of-burn one, through which underlying tokens are sent to an unspendable address as transactions are completed. In essence, instead of using processing power, Bitcoins are burned as mining fuel. If the miner’s transaction is matched with the “winning” chain, they receive a mining reward.
Gaia is Blockstack’s user-controlled storage system. It allows interactions between the private data lockers, hosted by individual users, and the applications. This means that the data lockers in question are not stored directly on the blockchain, which only records the location of the data within Gaia.
The basic idea behind it is to take advantage of the cloud providers in place as well as their infrastructure without having to trust them with the actual data.
Blockstack (STX) forms an ecosystem in which users need to be authenticated in order to connect to any DApps, ensuring optimal levels of security. The method in question involves singular sign-on with universal usernames. A cryptographic public key runs on the device to unlock the software instead of a password. Blockstack Authentication is handled entirely on the chain and is maintained by the chain itself as well as the Blockstack Naming System. The latter is a user identity and app registry whose function is to distribute decentralized public keys.
The Stacks token (STX)
The Stacks Token launched in 2017 and has become one of Blockstack’s most noteworthy elements. Stacks provide users with the possibility to spend tokens on a variety of actions they wish to carry out, such as transactions, digital asset registration, app chain anchorage and smart contract execution.
In compliance with AML (Anti-Money Laundering) laws and KYC (Know Your Customer) regulations, the sale of Stacks tokens is controlled by the SEC. This implies a registration process. While some might consider it a drawback of Blockstack’s, operating with SEC approval means that STX may be sold in public offerings. This is an advantage of Blockstack even over Bitcoin, and it will also help kickstart other young cryptocurrencies and blockchains as they will be able to use Blockstack (STX) as a template for success.
Why use Blockstack (STX)?
The main use of Blockstack (STX) is for building decentralized blockchain apps. The system describes itself as a “full-stack decentralized computing protocol that enables a new generation of applications where developers and users can interact fairly and securely”. Thanks to Blockstack, developers and consumers see their digital rights returned to them and can enjoy protocols and developer tools created with their freedom in mind.
In short, Blockstack users receive personal keys for their entire digital life, which allow them to unlock all the software and applications they usually interact with all while maintaining optimal security and great convenience. The promise of decentralized Internet is a worldwide web where no one may gather or sell data without the authorization of the person it concerns.
For developers, the Blockstack ecosystem provides a base on which to build software that respects users’ digital rights, otherwise known as decentralized applications or DApps. Instead of employing the blockchain solely for value exchange, DApps also rely on it for data exchange and for interacting with support applications.
How to buy Blockstack (STX) on Bitit?
Buying Blockstack (STX) from a run-of-the-mill exchange platform may still prove complicated, particularly for U.S. citizens who are not yet permitted to buy and sell the token on Binance, for instance.
Fortunately, Bitit provides a solution to those who want to purchase Stacks easily. Thanks to its e-commerce-like interface, users may select the token of their choice and pay with their own currency, no other crypto asset needed. Create an account through a very simple process, check how many STX you will get from the amount you wish to spend and proceed to checkout. Bitit takes credit or debit cards, cash, and wire transfers.
Once your purchase is complete, your Stacks will be sent to your Stacks wallet.
How to store Blockstack (STX)?
The Blockstack (STX) system issues its users with a wallet address and a seed phrase (a 24-word combination) to keep their tokens stored securely. The seed phrase serves as a form of pin number which grants access to the wallet itself and to the token allocation. It is extremely important to note that no replacement seed phrase can ever be issued: those who lose theirs also lose access to their wallet and token allocation permanently. Writing that phrase down onto a piece of paper which can then be stored somewhere secure is one of the safest and most convenient options to avoid theft.
The wallet solution Blockstack (STX) offers does not support a variety of cryptocurrencies, it is therefore impossible to store Bitcoin or any altcoin other than Stacks on it.
Thanks to its innovative principles, Blockstack may well have the potential to transform the Internet as we know it and to finally provide its users with a much more private alternative. With set milestones in place, the team is driving this ambitious project efficiently and guaranteeing measurable improvements, making Blockstack (STX) an option worth considering for many developers looking for a future-oriented solution.