Nakamoto Upgrade Launches to Enhance Stacks Blockchain Efficiency

Nakamoto Upgrade Begins for Stacks Blockchain

Stacks, an innovative layer-2 blockchain designed to enhance the capabilities of the Bitcoin network, has officially commenced its Nakamoto upgrade. This upgrade aims to significantly improve transaction speeds and overall efficiency.

Named after Bitcoin’s enigmatic creator, Satoshi Nakamoto, the Nakamoto upgrade will decouple the block production schedule of Stacks from that of Bitcoin. This shift allows for greater flexibility and efficiency in how Stacks operates.

Network operators now have a two-week window to implement the necessary changes brought by the Nakamoto upgrade. Following this period, a hard fork will take place to finalize the upgrade process. The Nakamoto upgrade introduces a novel method for producing Stacks blocks, leveraging a proof-of-transfer (PoX) consensus algorithm. In this system, users are required to burn Bitcoin (BTC) to mine Stacks blocks and, in return, they receive rewards in the form of STX tokens.

This new mechanism was initiated in April, with the introduction of block “signers” who come online to validate “tenures” of transactions. Tenures refer to specific time periods during which miners are assigned the task of producing multiple blocks, all of which are ultimately settled on the Bitcoin blockchain.

One of Stacks’ primary objectives is to enhance the utility of Bitcoin by introducing advanced functionalities such as smart contracts and various decentralized finance (DeFi) applications. To facilitate this, Stacks is also launching sBTC, a bridging asset that enables users to transition their Bitcoin into the Stacks ecosystem.

Despite these advancements, the STX token, which serves as the fuel for the Stacks network and rewards miners, has experienced a decline of over 8% in the last 24 hours. This downturn reflects a broader trend in the digital asset market, where the CoinDesk 20 Index has fallen nearly 4%.