What is Stacks (formerly Blockstack)? STX Token Review (2026 Update)
Stacks brings smart contracts to Bitcoin and lets STX holders earn BTC by Stacking. Here's the Blockstack-to-Stacks story, the Nakamoto upgrade, and sBTC.
Blockstack set out to build a user-owned internet anchored to Bitcoin, the most secure blockchain. Since those early days, the project has been through a full rebrand and a major technical evolution. Today it is known as Stacks, and it has repositioned itself as a leading Bitcoin Layer 2. Here we will take a look at what Stacks is, how it uses Bitcoin, and the role of the STX token.
From Blockstack to Stacks
The project originally launched as Blockstack, focused on decentralized apps and identity. It later rebranded to Stacks and shifted its core narrative toward being a smart-contract layer that settles on Bitcoin. As a result, Stacks became one of the most prominent efforts to bring programmability and DeFi to the Bitcoin ecosystem, something Bitcoin's base layer does not natively support.
How Stacks Works
Stacks enables smart contracts and decentralized apps whose transactions settle on the Bitcoin blockchain. It uses its own programming language, Clarity, designed for predictability and security. As a result, developers can build applications that inherit a degree of Bitcoin's security while adding functionality Bitcoin alone cannot provide.
A major milestone was the Nakamoto upgrade, which improved transaction speed and tightened the connection to Bitcoin. Alongside it, Stacks introduced sBTC, a mechanism designed to move BTC in and out of the Stacks layer in a decentralized way. As a result, holders can put their Bitcoin to work in DeFi rather than leaving it idle.
The STX Token
STX is the native token of Stacks. It is used to pay transaction fees, deploy smart contracts, and participate in the network's unique consensus. One of the most distinctive features is Stacking: STX holders can lock their tokens to help secure the network and, in return, earn rewards paid in Bitcoin. As a result, STX holders can earn BTC yield simply by participating in consensus — a mechanism unique to the Stacks design.
Looking to the Future
Looking to the future, Stacks is central to the growing "Bitcoin DeFi" narrative, as more builders look to activate Bitcoin's large, idle capital base. With the Nakamoto upgrade and sBTC live, the project is better positioned than it was in its Blockstack days. As a result, it remains one of the key names to watch in the Bitcoin layer-2 space. Always do your own research before investing.
This article was updated in July 2026 to reflect the rebrand from Blockstack to Stacks, the Nakamoto upgrade, and sBTC.
