An Explanation of Bitcoin L2 Stacks: Creating Smart Contracts on Bitcoin

Bitcoin L2 Stacks: Smart Contract Creation on Bitcoin

Stacks is an L2 solution for creating smart contracts and decentralized applications on Bitcoin. Cryptocurrency KOL Francesco introduces Stacks from perspectives such as its reasons for being built, features, and advantages.

The Bitcoin codebase is very limited. The operation of Bitcoin is fully in line with its expectations. The code is written to prioritize security, decentralization, and network settlement. Any additional features or characteristics introduced will undermine these functions. Stacks is an L2 built on top of Bitcoin to achieve scalability and new features: allowing everything that the limited Bitcoin codebase does not allow.

Stacks transactions will be secured by Bitcoin hash power and finality. sBTC: a decentralized non-custodial asset pegged 1:1 to Bitcoin, enables faster and cheaper execution of smart contracts as well as atomic swaps. Stacks provides faster and more scalable transactions. After the Nakamoto update, Stacks will be able to generate a block every 5 seconds between two Bitcoin blocks. Settlement will still occur through Bitcoin blocks and with faster confirmations.

Built on top of Bitcoin, Stacks can gain the following benefits: 1) Bitcoin finality and security: currently, it has a different security than Bitcoin, defined as “BTC capital spent by Stacks miners”. With an update, Stacks blocks will be protected by the Bitcoin blockchain (unlike merged mining) 2) Smart contracts triggered by Bitcoin transactions: Stacks nodes also run Bitcoin nodes as part of their consensus, so smart contracts can read Bitcoin states and be triggered by Bitcoin transactions. 3) Writing transactions on Bitcoin: atomic swaps allow dApps to deploy BTC directly from the Bitcoin chain, and users can exchange BTC and other assets on Stacks. 4) Settling in Bitcoin: all Stacks tx settle in Bitcoin. 5) Bitcoin liquidity: a large amount of liquidity is leveraged.

Reference: https://twitter.com/francescoweb3/status/1675817660603588611

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Bitcoin Position Weekly | The largest such account has begun to “prompt risk”

Source: Scallion blockchain On November 9, the CFTC announced the latest issue of the CME Bitcoin Futures Weekly (Oct...

Blockchain

Portugal: Bitcoin transactions and payments are not subject to any taxes

The August 27 report said that the Spanish tax authorities have made it clear that the country will not tax cryptocur...

Blockchain

U.S. $ 6 trillion economic stimulus plan is immediate, Bitcoin may become the biggest winner

In the past few weeks, the entire world, including the Bitcoin industry, has been disrupted by the outbreak of the co...

Blockchain

Bitcoin Position Weekly: Does the retail bullish sentiment reach a historical high? Will the truth belong to the majority?

On August 10th, the CFTC announced the latest issue of the CME Bitcoin Futures Weekly (July 31-August 6). The market&...

Blockchain

Will the Eurozone debt crisis affect Bitcoin?

Foreword: Does the macro economy have an impact on the price of bitcoin? Is Bitcoin a safe haven? It is still controv...

Opinion

Why did hardware wallet Ledger launch the Ledger Recover service, which has sparked criticism from the Web3 community?

It may not be a good idea for Ledger to launch the Recover service, as it breaks all the principles of using a hardwa...