Key Takeaways:
- The Stacks blockchain is undergoing a major update named ‘Nakamoto’, initiated at Bitcoin block height 840,360, to address congestion by decoupling its block production from Bitcoin’s, enhancing scalability.
- The upgrade introduces a new proof-of-transfer consensus algorithm and involves the rollout of new block “signers” to manage transaction “tenures”, with full activation expected by late May.
- Approximately $1.3 billion in STX is staked on-chain, with recent changes automatically unlocking these tokens for re-staking in new Nakamoto-compliant pools, coinciding with a 16% surge in STX value.
The Stacks blockchain is set for a significant update aimed at addressing congestion problems.
This major upgrade, named ‘Nakamoto‘ in honor of Bitcoin’s pseudonymous creator, has officially begun its deployment.
Nakamoto has begun rolling out 🧡
— stacks.btc (@Stacks) April 22, 2024
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
Initiated at Bitcoin block height 840,360, the rollout marks the start of a two-step process scheduled to conclude in late May.
‘Nakamoto‘ will transform how blocks are produced on Stacks by decoupling the block production schedule from Bitcoin’s, enhancing the scalability of this layer-2 network.
Despite Bitcoin’s limit of around 7 transactions per second, Stacks had been mirroring Bitcoin’s block rate, leading to bottlenecks.
Congratulations to the @Bitcoin and @Stacks ecosystems for celebrating the start of the Nakamoto upgrade!
— Blockdaemon 😈 (@BlockdaemonHQ) April 22, 2024
Blockdaemon is excited to bring its institutional-grade security and support to Stacks, the leading Bitcoin L2, as a public signer. pic.twitter.com/br5CY0yjLP
The upgrade introduces a refreshed proof-of-transfer consensus algorithm.
As part of this transition, new block “signers” are being brought online to validate “tenures” of transactions.
Initially, these activities are for ‘practice,’ until the full activation of the upgrade in May.
Happy Nakamoto Day to all the @Stacks community, builders and dreamers! This kicks off the 1st step of the 2 part Nakamoto launch process and the release of the 2.5 Stacks blockchain 🥳🎉 pic.twitter.com/hk4mA4yFF0
— Bitflow (@Bitflow_Finance) April 22, 2024
For everyday users, it is recommended to ensure their wallets are up-to-date, which in many cases may happen automatically.
For those who stake their STX tokens, the recent changes have automatically unlocked these tokens, which can be restaked in Nakamoto-compliant pools expected to be available soon.
Currently, approximately $1.3 billion in STX is staked on-chain, representing about a third of the total circulating supply of $4.2 billion.
3/6 Here’s what you need to know for this first phase of the rollout:
— stacks.btc (@Stacks) April 22, 2024
What should users do?
For now, you don't have to do anything besides making sure you're always running an updated wallet. This will happen automatically for most of you!
What should Stackers do? 👇
This makes it one of the largest interest-earning capital pools related to Bitcoin.
Following the announcement of the upgrade, the token has seen a surge, increasing over 16% in value to about $2.90, thereby entering the top 25 tokens by market capitalization for the first time.
About The Author
Victor Fawole, a seasoned Web3 content creator and social media influencer, excels in bringing the pulse of the crypto world to our readers.
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