Stack Token, or STK, is a digital currency that promises to bring your money to life. Find out what that means today in our Stack Token review.
What is Stack Token?
Stack Token is a cryptocurrency in active development. The currency promises to offer “a better way to spend, save and share your money” through a fee-free environment.
The currency is being developed by STK Global Payments AG, which will conduct a Token Generation Event (TGE) and offer its tokens for sale through STKToken.com. The Stack Token sale begins on October 25, 2017.
The overall goal of Stack is to make a more usable cryptocurrency. The token facilitates fast, cheap, borderless transactions. Instead of just allowing users to perform transactions from crypto to crypto, however, Stack emphasizes borderless fiat to crypto transactions. The STK token provides access to state channels that ensure there’s enough cryptocurrency (like bitcoin and Ether) in a digital wallet, while the sale is completed at the point of sale in fiat currency. Users can spend their digital currencies at any point of sale, use STK tokens as a transaction cost, and effectively pay in fiat.
The tokens will be implemented on the Ethereum blockchain. They’re ERC20-compliant tokens.
What Problems Does Stack Seek to Solve?
Stack wants to help cryptocurrencies gain mainstream acceptance. They believe that mainstream acceptance will occur when digital currencies are embedded in everyday commerce.
Today, we continue to use fiat currencies for most everyday purchases. Stack aims to change that without forcing users to adopt to new standards or change their accounting.
Stack’s development team breaks it down into two core problems:
1) A lack of merchant acceptance of cryptocurrencies
2) Payments at point-of-sale must complete in near-instant time
How Does Stack Work?
STK Global Payment aims to create a platform that works as an alternative to traditional banking. You can use your smartphone app to store your money safely, access it instantly, and make transactions anywhere, in any currency, including crypto, using the STK token.
All spending and money management takes place on your smartphone using the Stack app. You can use that app to spend your tokens at a point of sale anywhere in the world.
Stack does all of this while charging transaction fees similar to Ethereum’s transaction fees – the price of Gas.
One of the key features behind Stack’s platform is the use of state channels. Stack uses state channels as a technique for making off-chain transactions with the same security guarantees as an on-chain operation. In layman’s terms, you get all of the benefits of a blockchain transaction – the cryptographic security and immutability – with none of the costs – like the processing power.
Here’s how the Stack whitepaper explains Stack’s state channels:
“State Channels allow us to conduct blockchain interactions as if they were being conducted on-chain, but require only that two or more users exchange information with each other. Participants in a State Channel may exchange a large number of transactions between one another instantaneously, requiring an on-chain operation only when the channel is closed. State Channels provide the speed required for STACK’s point-of-sale purchase mechanism: at the moment of purchase, the user sends STK tokens to STACK in exchange for STACK using their liquidity pool to make a fiat purchase through the global payment network. This is a cost effective approach to enabling transactions.”
How to Use Stack
Step 1) Creating a State Channel: The user loads STK tokens into their Stack mobile wallet. This authorizes the creation of a state channel on the STK platform. Both the user’s smartphone and Stack keep a local copy of the current state of the channel. This is an on-chain operation.
Step 2) Conducting the Transaction and State Changes: When the user spends money at a point of sale machine using the Stack app, they’ll receive a visual prompt in their Stack mobile wallet showing the value of the transaction – similar to how tap-to-pay mobile apps work today. Behind the scenes, the user authorizes a transaction to send the equivalent cryptocurrency to the STK platform. The STK platform receives the signed transaction almost immediately, counter-signs it, and stores a copy of that new state off-chain. The STK local currency account is then authorized to pay the requested purchase through its global payment network rails on behalf of the user.
Step 3) Keeping Funds Ready: As long as the State Channel is open, there are no fees when conducting transactions between the user and STK. There are also no ongoing fees for keeping the channel open.
Step 4) Withdrawing Funds: If the user wants to retrieve all or part of their STK tokens in the channel that has not been sent to STK, they can do so by withdrawing their funds. The user signs and publishes a withdrawal request (which is an on-chain operation).
Step 5) Closing: Closing a state channel requires one of the parties to sign and publish a close request to the state channel.
The STK Token Sale
The STK token sale is scheduled to start on October 25, 2017 at 17:00 UTC.
The cost per STK token is set at $0.20. 55% of the total supply of STK tokens is available through the sale (550 million STK tokens out of a 1 billion token total supply). The proceeds of the TGE will be used for marketing, solution development (the iOS and Android apps), and integration of STK with Stack and the operation of a crypto to local fiat currency exchange. 25% will be held in reserve, 10% will go to the founders and team, 5% to the advisors, and 5% to cover the costs of the token sale.
The sale is scheduled to end on November 3.
A pre-sale is taking place from October 11, to October 24, with a 20% discount available throughout the pre-sale.
Who’s Behind Stack?
Stack is being developed by STK Global Payments AG. That company is led by Miro Pavletic (CEO), Nicolas Dinh (COO), and Chad Leger (CFO). The team, according to the whitepaper, has decades of experience in financial services, technology, and marketing.
The company is based in Toronto.
Stack is a mobile payment app that aims to make cryptocurrencies easier to use for both merchants and consumers. It aims to bring cryptocurrencies into the “real world” by offering NFC-based mobile payments. You can use your phone like a contactless card or mobile payment app. With Stack, you’re spending your cryptocurrency balance, but the merchant receives fiat currencies. Stack uses state channels to facilitate exchange between crypto and fiat. So you spend crypto, the merchant receives fiat, and everybody wins.
The Stack token sale is taking place throughout October and November. Learn more today by visiting GetStack.ca or STKToken.com.