Summary:
Nakamoto upgrade launched for Stacks (STX) network, enhancing transaction speeds.
Decoupling from Bitcoin blockchain results in a 120-fold increase in block production speed.
Transaction confirmation times expected to drop from 10 minutes to seconds.
Introduction of sBTC, a programmable Bitcoin asset, is a key feature of the upgrade.
Despite advancements, STX price dropped nearly 11% after the announcement.
Nakamoto Upgrade Launches
The much-anticipated Nakamoto upgrade for the Stacks (STX) network, a layer-2 solution for Bitcoin, has officially launched. This upgrade, initiated on Wednesday, promises to significantly enhance transaction speeds and reshape the network's architecture.
Boosting Block Production
Central to this upgrade is the decoupling of Stacks' block production from the Bitcoin blockchain, leading to an astonishing 120-fold increase in block production speed. This means that transaction confirmation times are expected to drop from Bitcoin's average of 10 minutes to just seconds.
Introduction of sBTC
Moreover, the upgrade paves the way for sBTC, a programmable Bitcoin asset that will allow users to bridge their Bitcoin to the Stacks network in a more decentralized manner. This feature could unlock new use cases and applications for users.
Future Priorities for Stacks
The Stacks Foundation has laid out several future priorities, including:
- Promoting sBTC adoption
- Enhancing interoperability with other blockchains
- Supporting the growth of decentralized applications on the improved system
- Conducting research on BitVM, a computational framework that has rekindled interest in Bitcoin-based innovations.
Market Reaction
Despite these positive advancements, the price of STX, the native token of Stacks, saw a notable decline, dropping nearly 11% within 24 hours of the announcement. Currently, it is trading at $1.60, reversing much of its recent gains.
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