Original author: Crazy Sleep in the Rain
Previously, I mentioned the BTC ecosystem and specifically referenced Stacks and the Nakamoto upgrade. Today, I will continue along this line to discuss the Stacks project.
Let's quickly go over the basic information of Stacks. (Stacks is an old project, so just a brief look at this information)
From my personal perspective, $STX will never be absent from the market's speculation on the BTC ecosystem, but previous speculation felt more like a 'castle in the air,' lacking a foundation. After the Nakamoto upgrade, Stacks will provide the market with higher expectations through better performance and sBTC.
So, what exactly has the Nakamoto upgrade improved?
1. Performance
Previously, Stacks' block confirmation time followed Bitcoin's (PoX consensus mechanism), with a block time of about 10 minutes. This means that as a Bitcoin Layer 2, Stacks is inadequate; it inherits Bitcoin's security but does not improve sufficient performance based on Layer 1.
After the Nakamoto upgrade, according to Grayscale's calculations, Stacks' block time and gas fees have decreased from 6min/6.65u to 5s/0.25u.
Higher performance means better user experience, and better experience translates to greater attraction for users and developers. It will become the foundation for the development of the Stacks ecosystem. For example, previously trading memes on Stacks was quite tiring, but it will be much easier now. We can also see more possibilities for Stacks DeFi, such as a wider range of DeFi products and participants.
Additionally, Stacks is optimizing the Nakamoto upgrade for lower latency and higher bandwidth. Refer to this article ⬇️
https://bitcoinl2labs.com/optimizing-nakamoto
In terms of ideas, Stacks is still committed to addressing the previous shortcomings of Stacks to achieve higher performance. Only with higher performance can it compete with other high-performance Layer 1/Layer 2.
2, $sBTC
Speaking of DeFi, the sBTC upgrade will occur in early December (at the earliest) after the Nakamoto upgrade, with more upgrades planned for January and beyond next year. The Nakamoto upgrade serves as the basis for the sBTC upgrade, and the December upgrade will optimize the token issuance mechanism for Stacks and launch sBTC.
By the way, I hope it won't be delayed like the Nakamoto upgrade.
After the upgrade, sBTC is likely to become one of the important assets in the crypto market (previously, issues with $WBTC also aided the development of cbBTC and sBTC, and Coinbase has also delisted $WBTC).
For sBTC, the most noteworthy aspect is its adoption metrics. We can also see that Stacks is actively promoting the adoption of sBTC, such as collaborating with Bitcoin ATM operator Coinflip to integrate Stacks and sBTC, and introducing sBTC to Aptos, Solana, etc.
For sBTC, the growth model of cbBTC is very worth referencing. For example, supporting Moonwell with the $WELL token (and boosting $WELL) as rewards to promote the adoption of cbBTC. (Moreover, Stacks is financially strong, having recently completed a new funding round of $20 million, and they can fully use their funds to incentivize the adoption of sBTC, such as incentivizing sBTC adoption on lending protocols like Stacks, Aptos, and Solana)
Overall, the expectations for Stacks are still reasonable: the Nakamoto upgrade has brought higher performance and introduced sBTC as the core asset of the Stacks ecosystem, and Stacks' strong capabilities have further improved the adoption expectations for sBTC.
Lastly, on a different note. Recently, major public chains have been upgrading, such as Fantom Sonic and Avalanche9000, with the core goal of promoting public chain adoption. It is foreseeable that the coming months will be quite exciting, as the battle of public chains is set to begin again~
Enjoy
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