Bitcoin Layer-2 Network Initiates Nakamoto Upgrade to Enhance Stacking
Stacks, a layer-2 blockchain that enhances the Bitcoin network, has initiated the Nakamoto upgrade to enhance transaction speeds. This upgrade, named after Bitcoin’s pseudonymous creator, Satoshi Nakamoto, will separate the block production schedule on Stacks from Bitcoin’s.
Network operators now have a two-week timeframe to integrate the Nakamoto upgrade before a hard fork finalizes the process. The Nakamoto upgrade introduces a novel approach to producing Stacks blocks by utilizing a proof-of-transfer consensus algorithm. Users engage in burning bitcoin (BTC) to mine Stacks blocks and receive rewards. This implementation commenced in April, with block “signers” validating transaction “tenures.”
Tenures refer to the time periods during which miners are tasked with producing multiple blocks settled on Bitcoin. Stacks aims to introduce increased utility through features like smart contracts and decentralized finance functions using Bitcoin as the foundational layer. As part of this initiative, Stacks is introducing sBTC, a bridging asset facilitating the transition of BTC to the Stacks economy.
STX, the token powering the network and rewarding miners, has experienced an over 8% decline in the last 24 hours. The broader digital asset market has also witnessed a slump, with the CoinDesk 20 Index down nearly 4%.
In conclusion, the Nakamoto upgrade by Stacks represents a significant step towards enhancing the efficiency and functionality of the blockchain network. The integration of innovative mechanisms and the introduction of new assets showcase the continuous evolution and adaptation within the cryptocurrency space. This development underscores the ongoing efforts to optimize blockchain technologies and expand the possibilities for users and operators alike.
