The crypto space is always active with upgrades and updates.
The recent update that has been much anticipated is the Stacks Nakamoto upgrade. Before explaining what is this update about, let’s explain about Stacks first.
What is Stacks?
Stacks increase Bitcoin use cases by integrating the function for building Dapps with Bitcoin’s security. Unlike other innovative platforms on Bitcoin, Stacks is into making Bitcoin open to more developed activities.
Onepager: @Stacks
🔹 $STX brings decentralized applications and smart contracts to the Bitcoin network, extending the functionality of Bitcoin beyond just being a digital currency.
🔸Multiple projects are building on @Stacks (e.g. @ALEXLabBTC, @ArkadikoFinance, @trygamma) pic.twitter.com/bJTmjWG3Uo— House of Chimera (@HouseofChimera) April 20, 2024
Stacks Nakamoto Launch
Stacks rolled out the Nakamoto upgrade to improve the Bitcoin L2 solution’s transaction speed and security. The launch is about making Bitcoin more adaptable for developers by providing better tools for smart contract automation and decentralized application creation. The upgrade will open Bitcoin to more opportunities, increasing its use cases.
The Nakamoto upgrade is rolling with Bitcoin block 840360. Here’s a breakdown of what it entails:
- Eliminating the Need for Forks
The Nakamoto update doesn’t use Forks. Forks are a significant split in a blockchain protocol that results in two different versions of the blockchain. Forks cause network congestion, and the Nakamoto update is all about making Bitcoin efficient.
- Security
Stacks’ Nakamoto update improves Bitcoin’s security. The update operates on technologies that allow it to perform certain functions. These technologies are Weighted Schnorr Threshold signature (WTS), Stacker DB (Stacks Foundation), and ClarityWASM (Hiro System). All these technologies allow Bitcoin to stand out from other innovations.
- Reduced Bitcoin MEV
MEV is miner’s profits. Since miners have control over the activities on the blockchain, they could also maximize their mining profits. The Nakamoto update reduces Bitcoin MEV, reducing transaction costs because profit-seeking miners have less control.
- Speed
The upgrade improves speed challenges. Transactions no longer take a long time to process. The Nakamoto update confirms transactions in five seconds.
- Bitcoin Movement
Stacks Nakamoto allows for a smoother transaction between Bitcoin L1 and L2.
Nakamoto has begun rolling out 🧡
At Bitcoin block 840,360, the first fork kicked off the two-step rollout process that will bring us Nakamoto!
This means there's only one more step left before fast blocks, Bitcoin finality, and more are available to all!
Read more 🧵 1/6 pic.twitter.com/dvE0QkSlGt
— stacks.btc (@Stacks) April 22, 2024
Since its creation in 2021, stacks have been thriving through thick and thin with its meme community and DeFi applications. The Nakamoto upgrade makes Bitcoin much more versatile. The update speeds up transactions, creates a more secure Bitcoin network, and provides developers with a flexible platform to bring their ideas to life.
Are you staking $STX? It would be best to move your staked $STX into a liquidity staking protocol like LISA to increase its potential. You can also earn staking yields on ALEX.
How Will the Nakamoto Update Achieve All These?
The Stacks Blockchain describes introducing a new blockchain transaction as a tenure. A tenure is the time it takes for transactions to be successful. Now, that’s what the Nakamoto update is changing. With the Nakamoto update, Bitcoin blocks no longer decide a miner’s tenure; instead, $STX stackers do.
So, If a miner wants to handle a block transaction, he sends it to the stackers. The process continues when the stackers sign it, and miners produce signatures that confirm the block.
🔥We're excited to announce that #Yala and @Stacks join forces to improve the #Bitcoin #DeFi experience with a strategic partnership.#Stacks is a Bitcoin L2 enabling smart contracts & apps with Bitcoin as a secure base layer.
Yala will leverage its meta yield #stablecoin to… pic.twitter.com/SE9FSrCWNB
— Yala (@yalaorg) April 24, 2024
Stackers must sign and replicate each block, and they can increase the tenure of a miner. Stackers replicating each block is how forks got eliminated. They are incentivized to replicate blocks. What they do is produce signatures that represent 70% of Stacked $STX. So, stackers keep the system going while miners get block rewards like in the regular process.
STX miners begin by submitting a block commit transaction, and stackers observe it and produce a 10-year tenure with 70% signing powers. Miners make a block and send it to stackers. The stackers confirm and replicate it, and the miners see it and get the next block. The Nakamoto update eliminated forks, and Bitcoin finality became the day’s call.
In conclusion, the Nakamoto upgrade makes Bitcoin much more versatile. It speeds up transactions and creates a more secure Bitcoin network.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
