Business News Report
March 11, 2024

Bitcoin L2 Stacks to Launch Nakamoto Upgrade in April 2024

In Brief

Stacks announced it will activate proof-of-transfer consensus contract pox-4 on specific Bitcoin blocks between April 15th to 29th.

Bitcoin Layer 2 Stacks to Launch Nakamoto Upgrade in April 

Open-source Bitcoin Layer 2 blockchain Stacks (STX) co-founder Muneeb Ali announced the scheduled launch of the Nakamoto upgrade between April 15th and 29th. Within this timeframe, the new proof-of-transfer (PoX) consensus contract, called pox-4, will be activated on specific Bitcoin (BTC) blocks.

The Nakamoto upgrade is anticipated to improve transaction speeds and ensure transactions achieve 100% Bitcoin finality, facilitating the acceleration of Layer 2 development on Bitcoin.

Currently, $1.4 billion is locked in STX funds, which will be automatically unlocked, allowing users to continue receiving BTC rewards during the cycle. Institutional signers and the community are expected to lock the funds in the new pox-4 contract.

Signers are expected to start registration on the network and conduct testing of their setup on the mainnet. During this phase, signers will be running the Nakamoto code, but the Nakamoto consensus rules will remain inactive. This process allows for the onboarding of signers on the mainnet, even though they are not actively validating Layer 2 blocks at this stage.

After approximately two stacking cycles, there will be an Activation Window, during which the Nakamoto consensus rules become active at a specific Bitcoin block. Throughout these two stacking cycles, each lasting approximately two weeks, the primary focus on the network will be onboarding signers. This involves institutions and solo signers running their setups on the mainnet and testing their binaries and setups.

According to the announcement, launch contracts, Satoshi core consensus rules, block validation, DKG, StackerDB, and term extensions, including pox-4 and signer binaries, are prepared and are presently undergoing testing.

Stacks to Elevate Bitcoin Layer 2 Landscape

Stacks is designed to facilitate smart contracts and decentralized applications using Bitcoin as a secure foundational layer. The blockchain launched its mainnet in 2021. Its ecosystem involves more than 30 contributing entities, including the non-profit Stacks Foundation, developer tooling company Hiro, Xverse, Trust Machines, Mechanism, Bitcoin L2 Labs, ALEX, and Bitcoin Frontier Fund.

Recently, Stacks has integrated eight new industry participants, including Blockdaemon, NEAR Foundation, DeSpread, Luxor, Chorus One, Kiln, Restake, and Alum Labs, into its network. This integration enables them to participate in the wider ecosystem of validators, contributing to signing new Stacks blocks.

Positioning for advancements, Stacks anticipates the Nakamoto upgrade striving to enhance the Bitcoin ecosystem.  

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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