According to CoinDesk, Stacks, the Bitcoin layer-2 blockchain, has commenced the Satoshi upgrade, aiming to decouple its block production schedule from Bitcoin's. This upgrade, named after Bitcoin's pseudonymous creator Satoshi Nakamoto, seeks to enhance transaction speeds on the Stacks network.
Network operators have a two-week window to implement the Nakamoto upgrade, after which a hard fork will finalize the process. The upgrade introduces a new method for producing Stacks blocks using a proof-of-transfer consensus algorithm. In this system, users burn bitcoin (BTC) to mine Stacks blocks and receive rewards. This process began in April, with block signers coming online to validate tenures of transactions. Tenures are periods during which miners are assigned to produce multiple blocks that are ultimately settled on Bitcoin.
Stacks aims to increase utility by introducing smart contracts and other decentralized finance-related functions using Bitcoin as a base layer. As part of this initiative, Stacks is also rolling out sBTC, a bridging asset that allows users to bridge their BTC to the Stacks economy.
The token used for the network, STX, has seen a decline of over 8% in the last 24 hours. The broader digital asset market has also experienced a downturn, with the CoinDesk 20 Index down nearly 4%.
