The highly anticipated Nakamoto upgrade for Stacks, the leading Bitcoin layer 2 solution, has officially begun. Stacks serves as a scaling solution for the Bitcoin network, allowing developers to create smart contracts and build applications on top of the secure and decentralized base layer. This upgrade marks a significant step forward for Bitcoin layer 2 solutions and will contribute to the expanding utility of Bitcoin.
Bitcoin is widely recognized as the most secure, robust, and untapped crypto asset. The market is now starting to realize the potential of Bitcoin as the foundational layer for decentralized finance (DeFi) and other applications. The emergence of Bitcoin layer 2 solutions, such as Stacks, enables developers to build a wide range of new applications and solutions, including borrowing and lending platforms, asset swapping, trading ordinals and non-fungible tokens (NFTs), and more. This effectively expands the utility of Bitcoin.
The Stacks Nakamoto upgrade, along with other layer 2 advancements, will play a significant role in this resurgence. By combining Bitcoin with layer 2 solutions like Stacks, an economic ecosystem is created around BTC through the use of apps and smart contracts. This will ultimately unlock over $1 trillion in dormant capital. This marks a new phase for Bitcoin, where the asset is separated from the infrastructure, allowing for greater experimentation and economic growth.
Muneeb Ali, co-creator of Stacks, emphasizes the return of builders to Bitcoin and the exciting opportunities for new use cases in the largest crypto economy. Innovations like Ordinals, Runes, and various layers have made Bitcoin more appealing to developers. The Nakamoto upgrade for Stacks exemplifies the wider progression of the Bitcoin ecosystem as it rapidly scales beyond being just a store of value, becoming a secure base layer for experimentation and economic growth.
Once the Nakamoto release is fully rolled out over the next month, users can expect faster and more cost-effective transactions on Stacks. The upgrade will introduce fast (5-second) blocks, a significant improvement compared to Bitcoin’s current 10-30 minute block times. This will help alleviate congestion on the Bitcoin network and support the growing number of Bitcoin DeFi applications.
This release further solidifies Stacks’ position as a reliable network for developers leveraging smart contracts on Bitcoin. It enhances speed, security, and overall user experience. Leveraging years of experience in the Bitcoin ecosystem, Stacks is uniquely positioned to provide layer 2 capabilities for developers, institutions, and anyone looking to access the Bitcoin economy.
About Stacks:
Stacks is a Bitcoin layer 2 solution that enables smart contracts and decentralized applications to utilize Bitcoin as a secure base layer. The upcoming Nakamoto release in 2024, followed by the sBTC release, will bring faster speeds and transactions with 100% Bitcoin finality. Stacks is currently the leading Bitcoin layer 2 solution in terms of developer traction and market cap. It is poised to unlock Bitcoin and its $1 trillion in passive capital as a fully programmable and productive asset.
The Stacks (STX) token is used as gas on the layer 2 network and was the first to undergo an SEC-qualified sale in the United States. The project is explicitly decentralized, with the mainnet launch taking place in 2021. The Stacks ecosystem consists of over 30 contributing entities, including the non-profit Stacks Foundation, developer tooling company Hiro, Xverse, Trust Machines, Mechanism, Bitcoin L2 Labs, ALEX, Bitcoin Frontier Fund, and more.
