Bitcoin’s Layer 2 to See Boost with Stacks’ Nakamoto Upgrade

Bitcoin layer 2 blockchain, Nakamoto Upgrade for Stacks has been announced by Muneeb Ali, aiming to accelerate Layer 2 development.

Muneeb Ali, co-founder of the open-source Bitcoin Layer 2 blockchain Stacks (STX), revealed that the Nakamoto upgrade is slated to launch between April 15th and the 29th. During this period, specific Bitcoin (BTC) blocks will activate the new Pox-4 proof-of-transfer (PoX) consensus contract.

There will be an acceleration of BTC Layer 2 development thanks to the Nakamoto update, which is expected to increase transaction speeds and guarantee that all Bitcoin transactions reach 100% finality.

Throughout the cycle, users can keep collecting BTC rewards because of the automatic unlocking of $1.4 billion in STX money. The new POX-4 contract is anticipated to secure payments from community members and institutional signatories.

Signers are expected to begin the network registration and test their setup on the mainnet. While signers execute the Nakamoto code, the consensus rules governing it will be dormant. Even though signers aren’t currently validating Layer 2 blocks, they can still be onboarded on the mainnet using this technique.

The Nakamoto consensus rules are activated at a given BTC block during the activation window, which occurs after about two stacking cycles. The network’s main priority will be onboarding signers throughout these two stacking cycles, each lasting about two weeks. This requires institutional and solo signers to test their binaries and configurations on the mainnet.

Launch contracts, Satoshi core consensus rules, block validation, DKG, StackerDB, and term extensions, including pox-4 and signer binaries, are all ready and being tested, according to the statement.

Bitcoin Stacks to Improve the Second Layer of the Market

Built on top of Bitcoin’s secure base layer, Stacks makes it easy to implement smart contracts and decentralized apps. The mainnet of the blockchain was launched in 2021. Xverse, Trust Machines, Mechanism, Bitcoin L2 Labs, ALEX, and Bitcoin Frontier Fund are among the 30 participating businesses in its ecosystem. The Stacks Foundation is a non-profit organization.

Alum Labs, Blockdaemon, NEAR Foundation, DeSpread, Luxor, Chorus One, Kiln, and Restake are among the eight new industry participants Stacks has recently incorporated into its network. They are now able to sign new Stack blocks and join the larger ecosystem of validators thanks to this connection.

The Nakamoto upgrade, which aims to improve the Bitcoin environment, is something that Stacks is bracing for.