Bitcoin Layer-2 Network Stacks Begins Nakamoto Upgrade
Stacks, a layer-2 blockchain that augments the Bitcoin network, has begun its Nakamoto upgrade with the aim of making transactions even faster.
The Nakamoto upgrade, which is named after Bitcoin's pseudonymous creator, Satoshi Nakamoto, will decouple the block production schedule on Stacks from Bitcoin's.
Network operators now have a two-week window to implement the Nakamoto upgrade, after which there will be hard fork that completes the process. Nakamoto introduces a new way of producing Stacks blocks, using a proof-of-transfer consensus algorithm. Users burn bitcoin (BTC) to mine Stacks blocks and receive rewards. This process began its implementation in April , with block "signers" coming online to validate "tenures" of transactions.
Tenures are periods of time that miners are assigned to produce multiple blocks that are ultimately settled on Bitcoin.
Stacks' aim is to introduce greater utility such as smart contracts and other decentralized finance-related functions using Bitcoin as a base layer. To this end, Stacks is also rolling out sBTC, a bridging asset that allows users to bridge their BTC to the Stacks economy.
STX, the token used as fuel for the network and as the reward for miners, has fallen over 8% in the last 24 hours. The broader digital asset market has also slumped, with the CoinDesk 20 Index down nearly 4%.
Read More: Bitcoin's Programmability Draws Closer to Reality as Robin Linus Delivers 'BitVM2'
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