CryptoBitcoinStacks Initiates Nakamoto Upgrade to Accelerate Transactions

Stacks Initiates Nakamoto Upgrade to Accelerate Transactions

Stacks, a layer-2 blockchain enhancing the Bitcoin network, has commenced its Nakamoto upgrade to significantly boost transaction speeds.

The upgrade, named after Bitcoin’s enigmatic creator, Satoshi Nakamoto, will separate the block production schedule on Stacks from Bitcoin’s. Network operators have a two-week window to implement this upgrade, culminating in a hard fork that will finalize the process.

The Nakamoto upgrade introduces a new block production method via the proof-of-transfer consensus algorithm. In this system, users burn Bitcoin (BTC) to mine Stacks blocks and earn rewards. The implementation began in April, with block “signers” coming online to validate transaction “tenures.” These tenures represent periods during which miners produce multiple blocks, eventually settling on Bitcoin.

Stacks’ broader goal is to enhance Bitcoin’s utility by enabling smart contracts and decentralized finance (DeFi) functions using Bitcoin as the base layer. As part of this effort, Stacks is also introducing sBTC, a bridging asset allowing users to connect their BTC with the Stacks ecosystem.

Meanwhile, the network’s native token, STX, has dropped over 8% in the last 24 hours, reflecting a broader downturn in the digital asset market, where the CoinDesk 20 Index has fallen nearly 4%.

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Andrew
Andrew
Self-taught investor with over 5 years of financial trading experience Author of numerous articles for hedge funds with over $5 billion in cumulative AUM and Worked with several global financial institutions. After finding success using his financial acumen to build an investment portfolio, Andrew began writing and editing articles about the cryptocurrency space for sites such as chaincryptocoins.com, ensuring readers were kept up to date on hot topics such as Bitcoin and The latest news on digital currencies and Ethereum.

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