Stacks has commenced the implementation of its Nakamoto upgrade, which aims to enhance the scalability of Bitcoin. This upgrade is designed to improve transaction speed and security, potentially reigniting interest in the extended capabilities of Bitcoin.
On April 22, 2024, Stacks initiated its Nakamoto upgrade, a layer two (L2) protocol that addresses the scalability challenges of Bitcoin and expands its blockchain functionalities. This upgrade will provide developers with advanced tools to create smart contracts and applications, leveraging the robust infrastructure of Bitcoin. Stacks sees this upgrade as a strategic move to extend the utility of Bitcoin beyond its traditional role as a digital store of value.
Muneeb Ali, the co-creator of Stacks, believes that this upgrade represents a crucial moment for Bitcoin, signaling a resurgence of developer interest in the platform. The Nakamoto upgrade is expected to introduce faster block times, reducing them from the current 10-30 minutes to approximately five seconds. This change will alleviate congestion on the Bitcoin network, enabling quicker and more cost-effective transactions.
"We are currently experiencing a significant moment that revolves around the return of builders to Bitcoin," Muneeb Ali stated in a comment to Bitcoin.com News. "Innovations like Ordinals, Runes, and various layers have made Bitcoin exciting again for developers and have highlighted the immense opportunity to bring new use cases to the largest crypto economy," he added.
Ali further emphasized that the Nakamoto upgrade of Stacks this week signifies the broader progression of the Bitcoin ecosystem. As it rapidly scales beyond being a mere store of value, it is evolving into a secure base layer for experimentation and economic growth.
Stacks estimates that L2 solutions will unlock over $1 trillion in dormant capital within the Bitcoin ecosystem by expanding its functionality. The Nakamoto rollout, which will continue over the next month, aims to strengthen Stacks' reputation as a reliable network for accessing the Bitcoin economy. This news follows a substantial increase in funding for Bitcoin-based L2 projects this year.
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