- Key Changes After the Nakamoto Upgrade
- Impact on Projects in the Stacks Ecosystem
- Emergence of New Opportunities for Bitcoin
Stacks, the largest Bitcoin layer-2 network, is set for the biggest upgrade in its history — the Nakamoto Upgrade, which will be activated on August 28, bringing significant changes to the network's operation.
Key Changes After the Nakamoto Upgrade
The main change brought by the Nakamoto Upgrade will be an increase in transaction speed. Settlement times will drop from 10-30 minutes to around five seconds, improving the network's usability. Four weeks after the upgrade, a decentralized asset named sBTC, backed 1:1 by Bitcoin, will be introduced, facilitating BTC transfer between Bitcoin and Stacks and serving as gas in transactions.
Impact on Projects in the Stacks Ecosystem
Projects built on the Stacks blockchain, including the popular decentralized exchange Velar, have faced difficulties due to slow Bitcoin network speeds. The Nakamoto Upgrade will provide the same level of user experience as their counterparts on other networks, with the added advantage that Velar products will be built on the world's most decentralized blockchain.
Emergence of New Opportunities for Bitcoin
The Stacks upgrade and the introduction of sBTC come at a time of heightened interest in the Bitcoin ecosystem, which started in early 2023 with the advent of the Ordinals Protocol, popularizing the creation of NFTs and fungible tokens on Bitcoin. This interest has led to an increase in the number of Bitcoin L2s, supported by investments from major funds, thus fueling innovation around Bitcoin.
The largest upgrade in Stacks' history and the launch of sBTC come at a time when the ecosystem is ready to recognize the value of this achievement and will further stimulate innovation around Bitcoin.
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