Bitcoin
Stacks Co-Founder Reveals New BTC Reestablishment Protocol Plan
Muneeb Ali, co-founder of the Bitcoin Layer 2 Stacks project, recently shared exciting updates about upcoming ventures on social media platform X. Ali outlined several key advancements that led to the anticipated Nakamoto Part 2 update. Additionally, he emphasized innovations that promise to significantly improve Stacks’ capabilities and Bitcoin ecosystem.
Stacks Update to Introduce New Bitcoin Reestablishment Protocol
Ali highlighted the introduction of new Bitcoin reset protocols designed to enable BTC yields on Stacks while maintaining liquidity. “This could allow users to deploy BTC in L2 DeFi but keep liquid BTC in their wallets for other use/additional use,” Ali explained. Consequently, this development was created to offer Stacks users greater flexibility and utility in their Bitcoin holdings due to the liquidity feature.
Thus, users will be able to bet Bitcoin and also use your assets through a liquid portfolio. Another significant advance is the integration of sBTC, Stacks’ next native token, with major partners. Furthermore, Ali highlighted the robust institutional support for sBTC. He said: “Several of them are already public and people can learn about the next ones by joining open working groups. The institutional support for sBTC has been phenomenal and only growing.”
Although Bitcoin L2’s Nakamoto Part 2 upgrade has faced a delay, Ali remains optimistic about the benefits of the extended development period. He mentioned: “Delaying Nakamoto part 2 by 8 weeks of additional development time is not ideal, but it also means that (a) sBTC can quickly follow Nakamoto and (b) some of the WASM work that was further along can mature.”
Furthermore, this extra time is expected to guarantee the stability and robustness of the new resources. Additionally, Ali also highlighted improvements in testing and infrastructure upgrades, which he believes will lead to faster and higher quality future updates. He highlighted that “the testing and update infrastructure has improved a lot, meaning greater speed to market and higher quality of future updates after Nakamoto (sBTC full, WASM, etc.)”.
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Delayed Nakamoto Activation
Security continues to be a top priority, with new startups and programs focusing on DeFi security and operational security (opsec). Ali emphasized the importance of these initiatives, especially in light of recent events. The founder of the Bitcoin L2 project noted that “recent events emphasize an increased focus on security, and the ecosystem is already adapting and responding.”
Despite challenges due to the delay, Ali expressed confidence in the resilience and growth of the Stacks ecosystem. “Rome wasn’t built in a day. The Stacks ecosystem has always been about doing the hard things, doing the right things, and moving forward to expand the BTC economy. This ecosystem continues to lead the way to Bitcoin L2”, he stated.
In April, Stacks developer Mitchell Cueves announced an extension to the activation schedule for the Nakamoto update. Additional time is needed to develop a more advanced Signatory resilience/recovery system. “Lead developers no longer feel comfortable coming on board without this more advanced system,” explained Cueves, highlighting the importance of ensuring network stability and security.
After that, the Stacks Team moved Nakamoto’s go-live date to August 28, 2024. The new timeline aims to deliver key benefits, including improved miner resiliency, better handling of Signer responsiveness, and greater network stability. With these updates, the Stacks community hopes to have a more secure and robust ecosystem. It will continue to build on Bitcoin’s fundamental strengths.
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