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- The Nakamoto upgrade enhances Stacks with faster, more secure transactions and a better DeFi experience.
- sBTC introduces a trustless two-way peg between Bitcoin and Stacks for seamless asset transfers.
Dapp, a well-known cryptocurrency figure, emphasized Bitcoin L2 Stacks’ increasing potential as one of the best networks for hosting a new wave of economic activity and innovations on the Bitcoin blockchain.
The Nakamoto upgrade and the introduction of sBTC, two pivotal events in the Stacks ecosystem, are primarily responsible for this shift.
Bitcoin L2 @Stacks is emerging as the most well-equipped networks for hosting this new wave of economic activity and innovations on Bitcoin.
The Nakamoto upgrade and sBTC release are two major events in the @Stacks ecosystem.
Here's what to expect. 🧵🟧 pic.twitter.com/VHcqp0pmTv
— Dapp_⚛️🌋 (@Dapper_Ud) August 2, 2024
Enhancing Stacks with Nakamoto Upgrade: Addressing Costs and Transaction Times
Stacks is a Layer 2 (L2) on the Bitcoin network that aims to improve Bitcoin’s functionality. While Stacks’ transaction costs are relatively modest, they are nevertheless higher than on other chains, affecting the smoothness of the DeFi experience.
Furthermore, transaction times are substantially longer, comparable to the time necessary to create a Bitcoin block.
An ideal Bitcoin L2 must support fully expressive smart contracts with a global ledger, as well as the ability to securely transport base layer assets into and out of the layer in a decentralized manner. Additionally, it should guarantee high transaction security, which the base layer’s overall security supports.
Unfortunately, Stacks currently lacks these features. The proposed upgrades are intended to improve the speed and efficiency of the Stacks network.
The Nakamoto upgrade is the first step toward improving Bitcoin’s expressivity and functionality. Following the upgrade, Stacks users will see speedier block times, with transaction times lowered to around five seconds, compared to Bitcoin’s ten-minute block timings.
Transactions on Stacks will also benefit from Bitcoin’s security level, as they will receive 100% of Bitcoin’s economic finality, which is an important feature for an L2.
Following the Nakamoto upgrade, the DeFi experience on Stacks is projected to significantly improve, establishing Stacks as a leader in security and scalability. This breakthrough will dramatically improve the user experience and make it easier to create additional Bitcoin-based decentralized applications (DApps).
On the other side, sBTC is a groundbreaking contribution to the Stacks ecosystem. It creates a trustless two-way peg between Bitcoin and Stacks, allowing users to seamlessly transfer assets between Stacks and Bitcoin, the base layer.
With these changes in the future, Stacks remains quite promising. It is ready to establish itself as the top Bitcoin L2, providing excellent security, scalability, and expressivity for developing new Bitcoin applications.
At the time of writing, the token Stacks (STX) is trading around $1.49, down 5.00% over the last 24 hours. Meanwhile, CNF previously reported another big achievement for the network, with Stacks reaching an all-time high of over 150 million STX locked in DeFi apps.
Furthermore, Bitflow has emerged as an important liquidity hub on Stacks, providing enhanced trading capabilities.
Beside that, as we previously highlighted, a well-known analyst recently spotted STX’s bullish potential when the token formed a Falling Wedge pattern. This points to a likely rising trajectory for the token in the near future.
