The leading Bitcoin layer-2 network, Stacks, has commenced implementing its Nakamoto upgrade, which will enhance functionality and integration with its base blockchain.

According to a press release shared with CryptoPotato, Stacks began the Nakamoto Activation Sequence on August 28. The process has four key steps, including the final code delivery, Cycle 92; the upgrade period for network operators; Cycle 93, which entails core developers selecting the final hard fork; and the Hard Fork Block, which would see the full implementation of Nakamoto rules.

Stacks Begins Nakamoto Upgrade

The Stacks Nakamoto upgrade is named after Satoshi Nakamoto, the pseudonymous creator of the Bitcoin network. It will introduce several improvements to the Stacks protocol, including increased transaction speed, stronger transaction finality guarantees, reduced Bitcoin Miner Extractable Value opportunities, and enhanced network resilience against blockchain reorganizations.

Muneeb Ali, co-creator of Stacks, said: “Bitcoin is the most exciting place to be building applications right now. Bitcoin L2s are becoming the future. The Stacks Nakamoto upgrade will be a catalyst for builders on other chains to make the jump to Bitcoin and its L2s, with Stacks leading the way. Think of this activation as building Solana-type rails that will help decongest the Bitcoin L1 while allowing the Bitcoin economy to scale on the L2.”

Stacks said the upgrade would solidify its position as a leading Bitcoin layer-2 solution by enabling more advanced smart contracts and decentralized applications while remaining connected to the largest blockchains security.

STX Down 14%

It is worth mentioning that the Stacks community approved the Nakamoto upgrade in mid-March, and it went live on the protocol’s testnet later that month. The Stacks Foundation intends to celebrate the Nakamoto Activation Sequence progress with daily surprise updates and giveaways for the next 21 days.

Meanwhile, Stacks’ native token STX has not reacted positively to the upgrade news. According to CoinMarketCap data, the token is on a downward spiral, plunging 14% in the past 36 hours. It was worth $1.6 at the time of writing, down from over $1.8 earlier this week.

Layer-2 networks like Stacks enhance Bitcoin’s scalability and execute faster and more cost-effective transactions, thereby increasing the network’s utility and programmability. As Bitcoin evolves from digital gold to an economic ecosystem, Stacks believes new use cases and significant capital will be unlocked, creating a new wave of BTC-based applications.