Stacks 2.0 to launch with novel consensus algorithm and smart contract capabilities for Bitcoin
Stacks 2.0 blockchain is all set to launch in January 2021 with the novel consensus algorithm called Proof of Transfer. Proof of Transfer connects the Stacks blockchain with the Bitcoin blockchain. Stacks blockchain anchors to the Bitcoin blockchain which has the most powerful proof of work consensus algorithm. Stacks miners spend Bitcoin to participate in the Stacks mining process. The elected leader gets the newly minted Stacks cryptocurrency (STX). The Stacks holders can lock their STX in consensus to earn the Bitcoin spent by the miners. The interesting thing to note will be the mining strategy used by the miners when the Stacks 2.0 launches. Ideally the miners would want to ensure that they acquire the Stacks at a lower rate compared to the market by spending the least amount of Bitcoin.
Stacks 2.0 also adds support for smart contracts using Clarity Smart Contract language. Since the Stacks and the Bitcoin blockchain are connected, it will bring unique DeFi capabilities for Bitcoin. This is a good opportunity for the developers to build useful products for the Stacks and the Bitcoin ecosystem.