Stack, a two-layer network We have started the Satoshi upgrade, which is built on top of Bitcoin. This important update changes the way Stacks creates new blocks, allowing it to operate independently of Bitcoin’s schedule. This upgrade is a huge step forward for Stacks, providing more flexibility and efficiency.
Bitcoin Layer-2 Network Stack, Nakamoto Upgrade Begins
Stacks, a second-layer blockchain designed to improve Bitcoin, has launched the Nakamoto upgrade to speed up transactions.
Named in honor of Bitcoin’s pseudonymous founder, Satoshi Nakamoto, the upgrade decouples block creation on the stack from Bitcoin’s schedule.
Operators have two weeks to complete the Nakamoto upgrade before the hard fork completes the process. The upgrade introduces a new approach to block creation using a proof-of-transaction consensus mechanism. In this system, users burn Bitcoin (BTC) to create Stacks blocks and receive rewards. This method began implementation in April, with block “signers” verifying transaction “periods.”
Stacks aims to increase utility by integrating smart contracts and decentralized finance functions on top of Bitcoin. Stacks is also launching sBTC, a bridging asset that connects BTC to the Stacks ecosystem.
What will be the impact of this upgrade?
The launch of the Nakamoto upgrade on the Stacks blockchain is likely to have several notable implications. The upgrade aims to decouple Stacks block production from the Bitcoin schedule, improving transaction speeds and network efficiency, potentially reducing bottlenecks and improving overall performance.
Introducing a proof-of-transaction consensus mechanism where users burn Bitcoin to mine Stacks blocks could increase the demand for BTC as it is used in the mining process. This could lead to greater integration and utility of Bitcoin within the Stacks ecosystem.
As Stacks rolls out additional features such as smart contracts and decentralized finance (DeFi) functionality, it can further strengthen its value proposition by attracting new users and developers. Introducing sBTC as a bridging asset could enable a seamless transition between Bitcoin and Stacks, potentially increasing liquidity and adoption.
However, the impact of the Nakamoto upgrade depends on successful implementation and user response. If the upgrade achieves its goals of improved transaction speed and expanded functionality without introducing significant vulnerabilities, Stacks could see significant growth and increased market interest.
Conversely, if technical issues arise or adoption is slower than expected, these potential benefits may be diminished, affecting the overall performance and market perception of the blockchain.