After several delays, Bitcoin layer-2 network Stacks moved forward with the first part of its highly anticipated Nakamoto update this week. The update is expected to remove block production from the Bitcoin blockchain, enabling faster and more efficient processing.
The Nakamoto Modification, Partly distributed in April.introduced virtual signature transactions using Stacks' proof-of-transfer (POX) agreement, where miners can burn BTC to earn STX rewards. Activation was delayed for eight weeks to focus on security and code auditing, but the full update finally started rolling out last Wednesday. Once fully implemented, stacks are expected to confirm transactions much faster than before.
Stack founder Munib Ali spoke with Decrypt about the update, factors that contributed to the delay, sBTC's future potential and more.
“We can see the finish line now,” Ali said. “And obviously some developers have been waiting for a while, so they're really excited.”
Ali explained that the software is available now and it will take a few weeks for everyone to upgrade their systems. After that two weeks there will be withdrawal.
“There's a great process, we have two weeks to update their software, and one thing we really want to test is the hands of the signers,” Ali said. “We're going to start these two-week cycles for these awards, and we'd like to see a handoff between '92 and '93.”
Nakamoto's update, which began its activation phase on Wednesday, separates Stax's blockchain product from the Bitcoin blockchain. Due to the 120-fold increase In the production speed of the block. As a result, verification times are reduced to mere seconds from the usual 10-minute interval.
“The best way I can describe it is that the final software is now available. [and] The launch process is underway,” Ali said. Now everyone is improving over the next two to three weeks, and then things will go live.
It's been a busy couple of months for the Stax Foundation. In July The SEC closed an investigation. To Stacks and original developer Hero Systems, which has been in development since 2021. The investigation was launched after Stacks network contributors said the token sale was “SEC-qualified”.
As for the SEC's investigation, Ali said the SEC scrutinized Stacks closely, asking a lot of questions throughout the process, even though they didn't violate any regulations. Ultimately, the lawsuit was dropped, boosting the credibility of the project.
“After years, it gives a very solid foundation to the project that everything has been done right,” Ali said. “Many say this makes STX a transparent commodity like Bitcoin.”
Now there's the next big step on the horizon for Stack. If all goes well with Nakamoto's update, sBTC or Stacks Bitcoin will follow closely, enabling new functionality on the scale network.
“For sBTC, the main network must be live first – but if everything goes well, the road will go smoothly,” he said. “So we want the system to last for a while, do some more testing, and then start over.”
Following Nakamoto's update, sBTC will act as Bitcoin's equivalent in the Stacks network, allowing smart contracts and decentralized applications (dapps) to run on the same security and transaction endpoint as Bitcoin.
This means users can move bitcoins to the Stacks network seamlessly. This should be useful for developers who have been slowly expanding and growing the network over the years.
“We don't throw money at anything. There are no incentives coming in for the devs, so it's all organic. All developers are building organically, all users are organically. “I think it helps the product stand out—it's like the test of time. We were constantly shipping very complex systems.
They said that their methodical and careful construction has created a solid foundation for them and that the improvement will be sustainable as the network gets more functions.
“People may be able to rave about something at first, but few are able to deliver,” Ali says. “That's something I'm proud of.”
Edited by Ryan Ozawa
Editor's note: This story was updated after publication to remove a reference to Stacks Developers being terminated, which was no longer the case.
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