Stacks completes Nakamoto upgrade to enhance Bitcoin DeFi features

The Bitcoin Layer 2 network Stacks (CRYPTO:STX) protocol has successfully completed its Nakamoto upgrade, introducing several enhancements to the platform.

Finalised on August 28, 2024, the upgrade concludes a series of improvements that began in April 2024, focusing on transaction finality, minimising miner extractable value (MEV) opportunities, and increasing network resilience.

A major feature of the Nakamoto upgrade is the introduction of sbtc, a programmable Bitcoin (CRYPTO:BTC) asset that enables decentralised bridging of Bitcoin to the Stacks network.

This allows users to transfer their Bitcoin holdings to Stacks, where they can be utilised in decentralised finance (DeFi) applications.

The sbtc integration aims to create a more versatile DeFi ecosystem on the Bitcoin network by allowing Bitcoin to be used in smart contracts and other DeFi products.

A key component of the upgrade is the enhancement of transaction finality guarantees.

This improvement ensures that transactions are confirmed more securely and efficiently, reducing the risk of reversals and double-spending.

Additionally, the upgrade addresses MEV opportunities, which concern the potential for miners to manipulate transaction ordering to their advantage.

By minimising MEV risks, the network becomes more equitable and less susceptible to manipulation by any single entity.

These upgrades are expected to significantly increase transaction speeds, enabling a more efficient and robust DeFi experience on Bitcoin.

With these changes, Stacks aims to offer a more secure and scalable platform for developers and users interested in engaging in DeFi activities on Bitcoin.

The completion of the Nakamoto upgrade marks a significant step forward for Stacks, positioning it as a key player in bringing DeFi capabilities to the Bitcoin ecosystem.

This advancement could lead to broader adoption of Bitcoin-based DeFi solutions, providing users with greater flexibility and opportunities within the decentralised finance space.

At the time of writing, the Stacks price was $1.59, and the Bitcoin price was $59,218.10.