Finally, Finality: Nakamoto Upgrade Sets the Stage sBTC, Bitcoin for Builders
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Hey Stackers, we’ve just entered a new era for Bitcoin. The Nakamoto upgrade is live, the stage is set for sBTC, and we know wherever Satoshi is right now, they're proud of the builders bringing innovation back to Bitcoin.
Celebrating
While we won’t spend too long basking in the glory of Nakamoto, it is important to recognize how key this upgrade is. Faster blocks, which will keep getting faster, by the way, are undeniably exciting, but it’s Bitcoin finality that many of the OGs are really eyeballing.
Going forward, Stacks can no longer fork on its own. Once a transaction is confirmed, reversing it is at least as hard as reversing a Bitcoin transaction. This alignment with Bitcoin's security model further establishes Stacks as the leader among secure, scalable Bitcoin L2s. This is a huge part of the promise of building on Bitcoin, the world’s most robust, battle-tested blockchain.
Another thing to celebrate? Juicy native BTC yields. Since shipping MEV-related improvements with the Instantiation step of Nakamoto in April, the network has seen a steady uptick in Stacking rewards with average APY going from as low as 2% before the upgrade to over 10% in recent cycles.
Going forward, Stacks can no longer fork on its own. Once a transaction is confirmed, reversing it is at least as hard as reversing a Bitcoin transaction. This alignment with Bitcoin's security model further establishes Stacks as the leader among secure, scalable Bitcoin L2s. This is a huge part of the promise of building on Bitcoin, the world’s most robust, battle-tested blockchain.
Another thing to celebrate? Juicy native BTC yields. Since shipping MEV-related improvements with the Instantiation step of Nakamoto in April, the network has seen a steady uptick in Stacking rewards with average APY going from as low as 2% before the upgrade to over 10% in recent cycles.
What’s ahead/Back to work
Bitcoin builders don’t rest long, especially when so much more exciting growth is ahead.
- sBTC: With Nakamoto live, sBTC is up next, as soon as 4-6 weeks away. The **₿est and the ₿rightest** campaign will feature top names in Bitcoin helping to usher in an era of programmable Bitcoin on the leading Bitcoin L2.
- Unleash your sBTC: In the coming weeks, new programs to bootstrap sBTC growth will offer new and OG community alike exciting new opportunities to do more with their Bitcoin. If you want to be the first to know, enter your email at bitcoinismore.org.
- Even faster blocks, efficiencies: As the network demonstrates stability, the Stacks layer will see continued performance boosts through latency and throughput improvements in the coming weeks as developers phase in optimizations via non-consensus breaking updates.
- Stacking pools, portals, and primo data: Not only are there more Stacking pools than ever before thanks to new partners of the Stacks layer, there’s also more data available thanks to Ortege and Signal21. Stacking.tools is in the mix, lockstacks got an upgrade, and we hear a dear old favorite for tracking your Stacking is making a big return in November! Look out for an “all-things Stacking” update in the next couple weeks!
- Events, hackathons, & more: The Stacks ecosystem has an active, growing events calendar - check out the latest virtual and IRL opportunities here.
sBTC
With Bitcoin finality now in play for Stacks, the ecosystem is gearing up for a new era of building on Bitcoin thanks to the fast-approaching launch of sBTC. As a refresher, here’s what to expect from this long-awaited Bitcoin asset:
- sBTC unlocks Bitcoin’s full potential as a programmable, productive asset for decentralized applications.
- With sBTC, building on Bitcoin is faster, cheaper, and easier – without compromising security and user experience.
- sBTC features an elite Signer network featuring industry leaders like Blockdaemon, Kiln, Luganodes, Copper, Figment, and so many more.
Get involved
- On October 30, the SIP-028 (Signer election for sBTC Signers) vote window will open. Learn more about the SIP and how to vote here.
- Explore and try apps from builders in the ecosystem.
- Join the community at an event near you!
FAQ
Nakamoto rules are the logic that makes Nakamoto different than the version before it called Stacks 2.4, and they are what enable Bitcoin finality, faster blocks, and the other network improvements associated with Nakamoto. When we reach the hard fork block for Nakamoto, the network will switch to running these Nakamoto rules and all the features we’re excited about go live for everybody.
For a comprehensive overview of the Nakamoto release, you can explore two resources:
- Check out this informative video that delves into the lifecycle of a Stacks transaction under Nakamoto rules. It breaks down each step, from initiation to finality on the Bitcoin chain, providing clarity on how faster transactions are achieved. You can watch it here.
- For detailed technical documentation, you’ll find an in-depth explanation of the Nakamoto upgrade and its implications in the documentation here.
Transaction speed can vary based on a number of factors, including the size of the contract call, network traffic, and more. After the Nakamoto release is live and stable, several optimizations will roll out in the coming weeks to continue improving network performance via non-consensus-breaking updates. In many cases, these are optimizations that have already been written and tested, but were removed from the initial fork to reduce complexity; as the network performs, they will get 'toggled on'.
While most transactions move through in under 30 seconds, others have to wait for tenure change at the next Bitcoin block. This is expected behavior for this release but will be optimized now that the network is live. You can find a list of optimizations being worked on that will be introduced via non-consensus breaking upgrades in the coming weeks in the replies of this post.
While most transactions move through in under 30 seconds, others have to wait for tenure change at the next Bitcoin block. This is expected behavior for this release but will be optimized now that the network is live. You can find a list of optimizations being worked on that will be introduced via non-consensus breaking upgrades in the coming weeks in the replies of this post.
Core developers have ensured the safety and security of the Nakamoto upgrade through extensive testing and auditing, a phased rollout, and successful testnet windows. This has also included 3rd-party audits of varying types, to be published officially in the coming weeks. In addition, the recently announced addition of Asymmetric Research to the ecosystem has provided another set of valuable eyeballs from industry leaders in security.
The Nakamoto upgrade for Stacks has undergone extensive stress testing to ensure it can handle heavy usage. A public testnet allowed developers to interact with new features and thoroughly test the upgraded Proof of Transfer consensus mechanism. Core developers communicated proactively with Hiro and many other integration providers to ensure their products have been made Nakamoto-ready, including new endpoints have been added to the Stacks API. Nakamoto’s gradual rollout approach ensures careful monitoring and adjustment as needed, with ongoing support and documentation available for all ecosystem participants.
For builders and users who are noticing slow transactions for dApp transactions/interactions, here's an update on ongoing optimizations and what to expect:
This decision was made by core developers to:
- The initial Nakamoto upgrade is centered on stability and security. While fast blocks are live, developers have observed room for optimizations based on the structure of block arrivals. The team is investigating a scenario where Miners produce a block at the beginning of their tenure use up all their cost limits leading to either sparse blocks or blocks with stx transfers only.
- In the coming weeks, the “Tenure Extend” point release will be implemented and smart contracts will see increased bandwidth. This will optimize for missed Bitcoin blocks and reduce the delays sometimes experienced while waiting for a Bitcoin block. By implementing a tenure extension, miners will have the ability to refresh the Clarity block limit, ensuring smoother and more predictable block processing.
This decision was made by core developers to:
- Prioritize security and stability
- Allow ample time for thorough testing and fine-tuning
- Ensure a seamless transition for all network participants
- The implementation of Tenure Extend is not a consensus-breaking change.
- Once testing is complete, it will be a simple "toggle on" process.
- Users can expect to see these enhancements roll out within the next few weeks