Stacks Network Launches Nakamoto Upgrade, Promising Faster Bitcoin Transactions
The long-awaited Nakamoto upgrade for the Stacks (STX) network, a layer-2 solution for Bitcoin, has finally begun. This significant development, which commenced on Wednesday, is set to dramatically enhance transaction speeds and bring about substantial changes to the network's architecture.
At the heart of this upgrade is the decoupling of Stacks' block production from the Bitcoin blockchain. This modification is expected to result in a staggering 120-fold increase in block production speed. As a consequence, transaction confirmation times are projected to plummet from Bitcoin's average of 10 minutes to mere seconds.
Another crucial component of the upgrade is its role in preparing Stacks for the introduction of sBTC, a "programmable Bitcoin asset." This innovation will enable users to bridge their Bitcoin to the Stacks network in a relatively decentralized manner, potentially opening up new use cases and applications.
Looking ahead, the Stacks Foundation has outlined several priorities for the network's future. These include fostering adoption of sBTC, improving interoperability with other blockchains, and nurturing the growth of decentralized applications on the enhanced system. Additionally, the foundation plans to delve into research on BitVM, a computational framework that has sparked renewed interest in Bitcoin-based innovation.
Despite the positive technological advancements, the price of STX, the native token of Stacks, experienced a significant downturn, dropping nearly 11% in the 24 hours following the announcement. It is currently trading at $1.60, retracing much of the gains made in the past week.
