- The Nakamoto upgrade is underway on the Stacks network.
- The upgrade will increase transaction speed and introduce another asset class that allows broader transactions.
As a seasoned crypto investor who has weathered many market cycles, I find myself intrigued by the Nakamoto upgrade on the Stacks network. With its potential to boost transaction speeds and introduce sBTC, this update could be a game-changer for both Stacks and Bitcoin networks.
One of the top Layer 2 solutions on the Bitcoin network, known as Stacks, has disclosed a major update. This modification boosts the network’s transaction speed, thereby making transfers quicker and more streamlined.
Additionally, the upgrade will introduce a new asset class called sBTC.
Stacks begins Nakamoto upgrade
As reported by Stacks’ records, the implementation of the Nakamoto update is now underway across the network. This update substantially improves the Stacks blockchain, which was triggered at Bitcoin block number 840,360.
At present, it appears that the Nakamotoinstigation is progressing smoothly, with the latest Bitcoin block standing at number 858,602.
The Nakamoto update intends to greatly accelerate transaction processing within the network, slashing confirmation times down to mere seconds. Such a boost is projected to markedly heighten the productivity and user-friendliness of the blockchain, thereby attracting more interest from both users and developers.
Alongside these enhancements, the Nakamoto update also opens up the opportunity for adding a novel asset class called sBTC onto our network.
Four weeks following the deployment, the system will release the latest asset. The sBTC serves to effortlessly move Bitcoin (BTC) from one blockchain to Stacks. Additionally, it will act as fuel for transactions within the Stacks network.
Significantly, sBTC represents a decentralized digital asset tied directly to Bitcoin, providing an equivalent value and maintaining the safety features inherent in BTC. At the same time, this asset allows for expanded capabilities within the Stacks platform.
How this upgrade could impact the Stacks and Bitcoin network
Stack’s network is widely acknowledged as the biggest Layer 2 solution in the Bitcoin ecosystem, boasting a Total Value Locked (TVL) surpassing $99 million, as indicated by statistics from CoinMarketCap.
Remarkably, this accomplishment stands out because Bitcoin wasn’t initially conceived for Decentralized Finance (DeFi). Yet, ingenious Layer 2 solutions such as Stacks have pushed Bitcoin’s potential, making it possible to conduct DeFi operations within its network.
As a researcher delving into the realm of Layer 2 solutions like Stacks, one of the main hurdles I’ve noticed is speed. The Nakamoto upgrade, a potential solution in sight, focuses on escalating transaction speeds and slashing settlement times down from minutes to mere seconds. This enhancement could significantly boost the performance of the Stacks network, with positive reverberations extending to other networks that are Bitcoin-based.
Due to the Nakamoto update, the Bitcoin network is anticipated to experience heightened activity because of swifter transaction speeds that make it more appealing for multiple applications, especially Decentralized Finance (DeFi).
This surge in activity could lead to greater demand for Stacks’ native token, STX, as more users engage with the network and its associated services.
How STX has fared in the last 24 hours
In the last while, STX, as represented by [STX], has seen a notable upswing. However, this upward trajectory momentarily halted on the 26th of August. As per AMBCrypto’s analysis of its daily chart, there was a dip in STX’s value amounting to more than 4%.
Initially, the decrease led the price to fall from roughly $1.83 to about $1.76. However, even after this dip, STX managed to recover, experiencing a rise of more than 1%, making its current price approximately $1.77 at present time.
Realistic or not, here’s STX’s market cap in BTC’s terms
Significantly, the dip on August 26th didn’t halt STX‘s general upward momentum. The Relative Strength Index (RSI) hovers near 60, implying that the asset continues to exhibit a bullish trend.
In simpler terms, the Reading of the Relative Strength Index (RSI) indicates that although there was a minor dip, the overall optimistic attitude and demand for buying shares of STX are maintaining its path towards an increase.
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2024-08-27 16:08