The Bitcoin L2 stack implements the Nakamoto update for improved network functionality

Leading Bitcoin layer-2 network Stakes has begun implementing the Nakamoto update, which will increase functionality and integration with the underlying blockchain.

Stacks started the Nakamoto activation sequence on August 28, according to a press release shared with CryptoPotato. The process has four key steps, including the final code delivery, cycle 92. Update time for network operators; cycle 93, which includes selecting the final hard fork of the core developers; And the ban of the hard fork, which will see the full implementation of the rules of Nakamoto.

Stack begins the Nakamoto update

The Stax Nakamoto update is named after Satoshi Nakamoto, the inventor of the Bitcoin network. It introduces several improvements to the Stacks protocol, including increased transaction speed, stronger transaction finality guarantees, reduced Bitcoin Miner Extractable Value opportunities, and improved network resistance to blockchain reorganization.

Munib Ali, co-creator of Stacks, said, “Bitcoin is a really exciting place to build apps right now. Bitcoin L2s are the future. Stacks Nakamoto's update will be helpful for developers building on other chains to make the jump to Bitcoin and L2s, with Stacks leading the way. Think of this activation as building Solana-style rails that help reduce Bitcoin L1 congestion and allow the Bitcoin economy to increase on L2.

Stacks says the upgrade will strengthen it as a leading Bitcoin Layer-2 solution by enabling more advanced smart contracts and decentralized applications, while also being linked to greater blockchain security.

STX down 14%

It's worth noting that the Stax community approved Nakamoto's update in mid-March and it was released on the protocol's testnet later that month. The Stax Foundation intends to celebrate Nakamoto's activation sequence with daily surprise updates and giveaways over the next 21 days.

Meanwhile, Stax's native token STX did not react positively to the update news. According to CoinMarketCap data, the token is on a downward spiral, dropping 14% in the last 36 hours. At the time of writing, the price was $1.6, up from more than $1.8 earlier this week.

Layer-2 networks such as Stacks improve the scalability of Bitcoin and enable faster and more cost-effective transactions, thereby increasing the network's serviceability and programming capacity. As Bitcoin transitions 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.