Stacks Unveils Nakamoto Update: A Revolution in Bitcoin Transaction Speed ​​and Efficiency.

This week, Bitcoin’s layer-2 network Stacks launched the first phase of its long-awaited Nakamoto update. The development is critical because Stacks aims to decouple block production from the Bitcoin blockchain, which is expected to lead to a tremendous increase in activity. The update, which was first introduced in April, was delayed by eight weeks to prioritize security and conduct code audits. However, the full rollout began last Wednesday, and transaction confirmation times are expected to drop from Bitcoin’s average of ten minutes to a few seconds.

In addition to speeding up transactions, the Nakamoto update adopts Stacks’ proof-of-transfer (POX) consensus mechanism, which allows miners to earn STX rewards by burning BTC, thus encouraging stronger participation in the network. “They have a great process; they will have two weeks to update their software,” Muneeb Ali said in an interview. He added that this phased approach demonstrates Stacks’ determination to ensure a smooth transition. Anticipation around this update is particularly intense, especially since developers have been sitting idle waiting for this launch.

In addition to technological advancements, the Stacks Foundation has had to deal with significant regulatory hurdles. Recently, the SEC concluded an investigation into Stacks and its original developer Hiro Systems that had been ongoing since 2021. Despite the participants’ claims that it was “SEC-approved,” the investigation was initiated. Ali said that despite the SEC raising many questions during the investigation, the fact that it ultimately concluded without any violations has given the project significant confidence in the crypto ecosystem. “Years later, it provides a very solid foundation to determine that everything was done properly,” he said, emphasizing the importance of regulatory compliance in terms of reliability.