The Nakamoto Activation Sequence Has Begun, Marking a Milestone for the Stacks Layer 2 (L2) Solution

This activation represents a major upgrade, bringing enhanced functionality and integration with Bitcoin.

The Nakamoto Activation Sequence has officially begun for Stacks, a Layer 2 (L2) that enhances the functionality and integration of Bitcoin. This activation marks a significant step in the evolution of Stacks, further cementing its role as a critical component of the Bitcoin ecosystem.

Announced by the Stacks Foundation on August 28th, from its headquarters in New York, New York, this activation will introduce several crucial improvements to the Stacks network, ultimately enhancing the capabilities of Bitcoin.

Several key aspects will be impacted by this activation:

Importance of Layer 2s for Bitcoin

Layer 2 solutions, such as Stacks, play a vital role in enhancing the scalability of the Bitcoin network. By enabling faster and more cost-efficient transactions, L2s contribute to expanding the network's utility. As Bitcoin fully embraces programmability, new use cases will unlock an estimated $800 billion in latent capital.

“Bitcoin is the most exciting place to be building applications right now. Bitcoin L2s are becoming the future,” said Muneeb Ali, Co-Founder of Stacks. “The Stacks Nakamoto upgrade will be a catalyst for builders on other chains to make the jump to Bitcoin and its L2s, with Stacks leading the way. Think of this activation as building Solana-type rails that will help decongest the Bitcoin L1, enabling the Bitcoin economy to scale on the L2.”

Activation Timeline for the Nakamoto Upgrade

With the final code for Nakamoto being delivered to network operators today, the activation window has officially opened. Network operators will have one complete Stacking cycle (Cycle 92) to implement the upgrade. Following a successful transition from Cycle 92 to Cycle 93, core developers will identify the final hard fork block, at which point all Nakamoto rules will go live.

The Nakamoto activation sequence will progress through the following key steps:

This activation will further establish Stacks as the leading Bitcoin Layer 2 solution, facilitating advanced smart contracts and decentralized applications while maintaining a close connection to Bitcoin's security and value proposition.

The Nakamoto Upgrade coincides with Bitcoin's evolution from “digital gold” into a thriving economic system for the digital age, unlocking substantial capital and paving the way for a new generation of Bitcoin-based applications.

The Stacks community is encouraged to stay informed about the activation process and participate in the town hall on August 28th, where development leads will be providing real-time updates as the activation sequence begins. Additionally, the Stacks Foundation will be celebrating the Nakamoto activation with daily surprise updates, news, giveaways, and content over the next 21 days.

About Stacks

Stacks is a Layer 2 (L2) solution that leverages Bitcoin as a secure base layer, enabling smart contracts and decentralized applications to be built on top of Bitcoin. With the 2024 Nakamoto and sBTC launches, users can expect faster speeds and transactions with 100% Bitcoin finality. Among the Bitcoin L2s, Stacks is currently leading in terms of developer activity and market capitalization. It aims to help unlock Bitcoin and its $500B in passive capital, ultimately transforming it into a fully programmable, productive asset. The Stacks (STX) token is used as gas on the L2 and was the first to undergo an SEC-qualified sale in the United States. The project fully decentralized with the mainnet launch in 2021. Currently, there are 30+ contributing entities in the Stacks ecosystem, including a non-profit Stacks Foundation, developer tooling company Hiro, Xverse, Trust Machines, Mechanism, Bitcoin L2 Labs, ALEX, Bitcoin Frontier Fund, and others.