Stacks, the layer enabling smart contracts on Bitcoin, has achieved a new milestone with over 1,400 smart contracts deployed in a single month, just days before the Nakamoto upgrade is set to fully activate.
On September 7, Stacks revealed this record-setting performance in a post on X, noting a significant 30% month-over-month increase in smart contract deployments. This development highlights the growing adoption and functionality of the Bitcoin network’s smart contract layer, Stacks, especially as it prepares for a major upgrade.
Anticipation Builds for the Nakamoto Upgrade
The Nakamoto upgrade, which began rolling out with Bitcoin block 840,360 on August 28, is poised to bring substantial improvements to Bitcoin-based decentralized finance (DeFi) applications, a field often referred to as BTCFi. This upgrade aims to enhance the scalability and efficiency of Bitcoin’s Layer 2 solutions, potentially transforming the landscape of DeFi.
Diego Mey, co-founder of Bitflow Finance, expressed his optimism about the upgrade in an X post, stating:
“With Nakamoto, Stacks shifts to a ‘Bitcoin-native’ model, enhancing performance and security for Stacks projects by relying more on Bitcoin’s infrastructure.”
Moreover, Mithil Thakore, co-founder and CEO of Velar Bitcoin liquidity protocol, highlighted that the upgrade would also reduce Stacks’ block time to five seconds and ensure 100% Bitcoin finality, further bolstering the robustness and responsiveness of the network.
The full activation of the Nakamoto upgrade is highly anticipated, with the final hard fork block expected to occur shortly. However, the exact timing remains under determination as Stacks developers have decided to observe two full “Stacking cycles” to ensure network stability before the complete rollout.
Stacks’s new Bitcoin-backed token, sBTC, is also scheduled to launch four weeks after the finalization of the Nakamoto upgrade. This development is on track and adds to the excitement surrounding the enhancements being brought to the platform.
Context and Significance
Named after Bitcoin’s pseudonymous creator, Satoshi Nakamoto, the upgrade represents a significant step forward for Bitcoin DeFi and Stacks’s integration with Bitcoin’s broader ecosystem. It reflects a strategic move towards a more decentralized and efficient environment for digital assets on Bitcoin’s network.
As the cryptocurrency community watches closely, the successful deployment of the Nakamoto upgrade could mark a pivotal moment in the evolution of blockchain technology and its applications, potentially leading to wider acceptance and use of Bitcoin in various financial processes and beyond.
| Date | Event | Significance |
|---|---|---|
| Aug 28, 2024 | Start of Nakamoto Upgrade Rollout | Began with Bitcoin block 840,360 |
| Sept 7, 2024 | Announcement of Record Smart Contracts | Over 1,400 contracts deployed, 30% MoM increase |
| Upcoming | Final Hard Fork Block | To finalize Nakamoto upgrade |
| Upcoming | Launch of sBTC Token | Scheduled four weeks post-upgrade |
The advancements in Stacks and its integration with Bitcoin’s infrastructure are setting the stage for future innovations and could lead to more dynamic and capable blockchain solutions.
Featured image credit: Dang Pham via Vecteezy
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