Stacks, a layer-2 blockchain enhancing the Bitcoin network, has commenced its Nakamoto upgrade to significantly boost transaction speeds.
The upgrade, named after Bitcoin’s enigmatic creator, Satoshi Nakamoto, will separate the block production schedule on Stacks from Bitcoin’s. Network operators have a two-week window to implement this upgrade, culminating in a hard fork that will finalize the process.
The Nakamoto upgrade introduces a new block production method via the proof-of-transfer consensus algorithm. In this system, users burn Bitcoin (BTC) to mine Stacks blocks and earn rewards. The implementation began in April, with block “signers” coming online to validate transaction “tenures.” These tenures represent periods during which miners produce multiple blocks, eventually settling on Bitcoin.
Stacks’ broader goal is to enhance Bitcoin’s utility by enabling smart contracts and decentralized finance (DeFi) functions using Bitcoin as the base layer. As part of this effort, Stacks is also introducing sBTC, a bridging asset allowing users to connect their BTC with the Stacks ecosystem.
Meanwhile, the network’s native token, STX, has dropped over 8% in the last 24 hours, reflecting a broader downturn in the digital asset market, where the CoinDesk 20 Index has fallen nearly 4%.
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