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Bitcoin Layer-2 Network Stacks Begins Nakamoto Upgrade

Aug 28, 2024
  • Stacks, the Bitcoin layer-2, has begun the Satoshi upgrade that decouples the block production schedule on Stacks from Bitcoin’s.
  • Network operators now have a two-week window to implement the Nakamoto upgrade, after which there will be hard fork that completes the process.

As a seasoned analyst with years of experience in the ever-evolving world of blockchain technology and digital assets, I find the recent developments surrounding Stacks particularly intriguing. The Nakamoto upgrade, named after the enigmatic creator of Bitcoin, aims to enhance transaction speed on this layer-2 solution while decoupling it from its base layer.

The layer-2 blockchain solution known as Stacks is now initiating its Nakamoto update, with the goal of accelerating transactions within the Bitcoin network even more.

The Nakamoto upgrade, which is named after Bitcoin’s pseudonymous creator, Satoshi Nakamoto, will decouple the block production schedule on Stacks from Bitcoin’s.

As a researcher involved in this field, I’m excited to share that network operators have approximately two weeks to execute the Nakamoto upgrade. Following this period, we’ll experience a hard fork, concluding the process. The Nakamoto update introduces an innovative method for generating Stacks blocks, leveraging a proof-of-transfer consensus algorithm. In essence, users will be mining Stacks blocks by burning bitcoin (BTC) and receiving rewards. This process commenced in April, with validators, or “block signers,” coming online to authenticate “tenures” of transactions.

Mining tenures refer to the designated timeframes during which miners work tirelessly to create numerous blocks within the Bitcoin network, eventually leading to their validation or settlement.

As a crypto investor, I’m excited about Stacks because it’s all about enhancing Bitcoin’s capabilities by adding features like smart contracts and decentralized finance tools. Essentially, I see Stacks as building a robust infrastructure on top of Bitcoin. One key component they’re introducing is sBTC, which serves as a bridge, enabling me to move my Bitcoin into the Stacks economy seamlessly. This way, I can leverage more functions within the Stacks ecosystem while still benefiting from the security and stability of Bitcoin.

As a researcher, I’ve observed a significant drop in the value of STX, the token that powers our network and serves as remuneration for miners. Over the past 24 hours, it has declined by approximately 8%. The broader digital asset market has also experienced a downturn, with the CoinDesk 20 Index dipping almost 4% within the same timeframe.

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2024-08-29 00:54