A Stacks forecast seems particularly interesting in connection with the recent Bitcoin rally. Since its founding at the end of 2017, Stacks has developed into an innovative project supported by experienced developers and well-known investors such as Coinbase Ventures and Winklevoss Capital. Dive into the world of Stacks and discover how this open blockchain leverages the security of Bitcoin to enable DApps and smart contracts that could revolutionize the crypto landscape. Find out more about the exciting Stacks forecast and how you could benefit from this development front.
Why Bitcoin also needs Layer 2 solutions like Stacks
The importance of Bitcoin Layer 2 (L2) solutions can be explained by three main reasons:
- Bitcoin L1 scaling issues: Bitcoin’s first layer (L1) is not designed to support billions of users. High transaction fees, which have increased hundreds of times, make it unattractive for small transactions of €100. Layer 2 solutions offer a more cost-effective alternative and increase the effective bandwidth for Bitcoin transactions.
- Versatile application development: The Bitcoin L2 Stacks enables developers to create applications comparable to those possible on other blockchain platforms such as Ethereum or Solana. This opens up the possibility for Bitcoin to integrate proven use cases such as stablecoin loans or native DEXs.
- Increased utility for L1 tools: The Layer 2 solution Stacks increases the usefulness of L1 tools such as DLCs (Discreet Log Contracts). Users can participate in certain contracts on Stacks via DLCs without their BTC having to leave the L1 level. This provides flexibility and security for participating in activities such as liquidity pools.
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Nakamoto upgrade of stacks
The Nakamoto update from Stacks, planned for shortly before the Bitcoin halving, brings significant innovations. The update allows much faster block times of just 5 seconds, a significant improvement over the current 10-30 minute block times tied to Bitcoin’s first level (L1). In addition, the security of stacks is strengthened by adjusting the resistance to restructuring to 100% of Bitcoin’s hash power.
The most important innovations include:
- Bitcoin backup: Transactions on Stacks are backed by all of Bitcoin’s hash power after about 100 Bitcoin blocks, giving them Bitcoin finality. This makes them extremely safe and reliable.
- Trust-minimized Bitcoin Peg: Introducing a decentralized, non-custodial, Bitcoin-pegged asset that enables faster and cheaper smart contract operations without compromising security.
- Clarity language: Supports secure and decidable smart contracts that provide precise functionality.
- Knowledge of Bitcoin state: Allows reading Bitcoin transactions and state changes for smart contract execution.
- Scalable, fast transactions: Provides high performance and scalability, including faster stacks block generation between Bitcoin blocks and support for various programming languages and execution environments.
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Bitcoin is coming to Layer 2
Bitcoin economy will scale thanks to L2s
Stacks is ready to help the Bitcoin ecosystem take the next big step.
The Nakamoto and sBTC upgrades will enable Bitcoin to be deployed in apps, with a seamless user experience, and secured by Bitcoin finality. pic.twitter.com/APUsQ1fQKp
— stacks.btc (@Stacks) December 5, 2023
Stacks’ sBTC system brings a revolutionary change for crypto investors by turning Bitcoin into a fully programmable and productive asset, which is for the Development of DeFi and a more secure Web3 is crucial. It is expected that sBTC will be launched as the second significant hard fork event after the next Bitcoin halving.
The sBTC is a new, decentralized Bitcoin peg mechanism that allows Bitcoin assets to seamlessly move in and out of smart contracts and to write these contracts trustlessly onto the Bitcoin blockchain. This could unlock hundreds of billions of dollars worth of passive BTC holdings for Web3 systems.
At its core, sBTC, an asset tied to Bitcoin, enables Faster and cheaper smart contract operations without compromising security. It is based on an open membership of dynamic actors who are economically motivated and can contribute to the Peg functionality.
This approach differs significantly from centralized or predetermined mechanisms and allows Using BTC in applications such as decentralized BTC-based lending and BTC-backed stablecoins.
For investors, this means they can convert their BTC into productive applications without having to entrust it to central entities. This is a significant step towards using Bitcoin as the backbone for sophisticated and secure decentralized applications.
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The Explosive Social Dominance of Stacks ($STX): A Game Changer for Crypto Investors?
Recent developments in the crypto sector have drawn the attention of many investors and observers to Stacks ($STX), a Layer 2 solution for Bitcoin. A positive aspect of this attention is the significantly increased social dominance of $STX, as noted by House of Chimera and LunarCrush highlighted. The moving average (MA) of the Social dominance has increased almost fivefold in the past few dayssuggesting that interest in stacks is not just growing, but exploding.
This increase in social dominance is notable, especially because it surpasses the high from the end of October. The maximum value of social Dominance is from 0.01% to more than 0.06% increased, a clear indicator of the increasing importance and interest in stacks in the crypto community. A key driver of this interest is the realization by speculators that a Layer 2 solution on Bitcoin could offer significant opportunities. This realization has led to increased attention and discussion on social networks and crypto forums.
Given these trends Stacks could play a key role in the next phase of crypto development play. The rising social dominance is a strong signal that the market is starting to take the potential of stacks seriously. For investors looking for promising opportunities in the ever-changing crypto landscape, Stacks could be an option worth considering.
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Stack’s forecast
Layer 2 for Bitcoin is currently one Market cap of $1.66 billion on 40th place of the largest cryptocurrencies CoinMarketCap. Of the total 1.818 billion STX tokens are already there 78.3% in circulation, which is why inflation rates are no longer expected to be too high. That was where it lay Inflation loudly Coincodex last year at 5.84%which according to information from Messari Compared to other cryptocurrencies, it seems relatively constant and predictable.
This year Stacks is one of the best cryptocurrencies from the top 100, of which STX has one Price increase of 471.93% since the beginning of the year was able to outperform by 94%. From now on the token is still there 65% from its all-time high removed at $3.61. Especially in the last seven days, Stacks is one of the strongest gainers among the leading cryptocurrencies with a rise of 63.88%.
STX gained further momentum when it surpassed the 78.6 Fibonacci retracement of the long-term uptrend at $0.76. Now it is The path is now clear up to the annual high of 1.32 US dollars, which is also the 61.8 Fibonacci retracement. However, Stacks According to the RSI, it is increasingly overboughtwith a higher high den rise go a little further can leave. If this level is also sustainably overcome with a daily closing price, the next price targets for the bulls at $1.57 and $1.71.
However, if corrections occur, they are different next supports at $1.05, $0.89, $0.76 and $0.63, which can all be good buy-the-dip opportunities. Long term Stacks could play a special role due to the great importance of Bitcoin, of which ordinals can only be the tip of the iceberg. In particular, compatibility with the EVM, as many other blockchains have, could offer an above-average opportunity.
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Bitcoin Minetrix: The future of cloud mining through decentralization
Bitcoin Minetrix is another Bitcoin-based, highly sought-after investment option that from the security of Bitcoin and, as a mining project, usually benefits from a leverage effect on the funding product.
The revolutionary mining model drives decentralization in the Bitcoin ecosystem and at the same time offers transparent and secure processing through blockchain technology. With Bitcoin Minetrix we are experiencing one new era of cloud miningwhich allows anyone to use Bitcoin to mine in a decentralized manner while making the benefits of mining available to a wider public.
The tokenization of mining at Bitcoin Minetrix ensures one transparent and secure handling of all mining activities, to avoid the not uncommon cloud mining fraud. This innovation also solves the problem of high hardware costs and fraudulent practices that have previously deterred many from BTC mining.
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About the author: Simon Feldhusen came into contact with the stock market for the first time 17 years ago and has been intensively involved in the topics of trading, cryptoassets, stocks, P2P, corporate finance, finance and entrepreneurship on a daily basis for more than 8 years. He has also been working as a copywriter and ghostwriter in the financial sector for several years. During this time he has acquired a diversified knowledge through various training courses on the financial markets and following daily news. Since then, not a day goes by without him dealing with the markets. He publishes, among others, for Finanz.net, ETF-Nachrichten.de, Coincierge.de, P2E News.com, Ariva.de and News.de.