Good for Bitcoin? Read the upcoming Nakamoto version of Stacks in one article

Author: Alex Nguyen

Compilation of the original text: Deep Tide TechFlow

Stacks is a smart contract platform that enables Bitcoin to be used for decentralized applications and decentralized finance (DeFi), unlocking trillions of potential Bitcoin capital. In this article, crypto analyst Alex Nguyen explains Stacks and its upcoming release of Nakamoto, and why this is bullish for Bitcoin.

Stacks allows developers to build dApps that use real bitcoin for payments, collateral, tokens, non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), and more. It enables decentralized finance (DeFi), Metaverse, Web 3.0, and other use cases by extending Bitcoin's scripting capabilities, while respecting Bitcoin's philosophy.

Some key features of Stacks include:

• Trustless cross-chain bridge with Bitcoin;
• A new Clarity programming language for more secure smart contracts;
• Consensus is reached through Proof of Transfer (PoX) that cyclically uses BTC energy;
• Tight Bitcoin node integration to react to BTC transactions.

Stacks achieves this through the following technologies:

• Record data on Bitcoin to realize trustless verification of Stacks activities;
• Once the Stacks transaction is confirmed by the PoX block, it inherits the security of Bitcoin; *Utilize Bitcoin's UTXO system;
• Respect Bitcoin's monetary policy.

A symbiotic relationship has been established between Stacks and Bitcoin:

*Bitcoin provides security, liquidity, and a monetary base asset.

• Stacks enable Bitcoin Capital to be productive in advanced applications.

The next big release is called Nakamoto and includes:

• sBTC - a trustless decentralized two-way anchor that introduces Bitcoin liquidity into smart contracts.
• Bitcoin finality - Once confirmed under a PoX block, Stacks transactions are irreversible.
• Faster blocks - Produce a block every 5 seconds while maintaining security.

sBTC allows an asset that can be exchanged 1:1 for actual bitcoins to be minted in a decentralized manner on Stacks.

sBTC can unlock trillions of capital for:

• Use Bitcoin as collateral in DeFi;
• Trustless bitcoin transactions on decentralized exchanges;
• Issue Bitcoin-backed stablecoins and assets;
• Bitcoin payment channel.

The finality of Bitcoin makes the Stacks transaction irreversible within about 100 PoX blocks after confirmation, requiring a deep reorganization of Bitcoin to undo it. This allows Stacks transactions to not only inherit the probabilistic immutability of Stacks, but also the security of Bitcoin.

Faster ~5-second blocks greatly increase transaction throughput and improve dApp responsiveness while maintaining the security of Bitcoin settlements.

By enhancing the capabilities of Bitcoin while deeply respecting the spirit of BTC, Stacks + Nakamoto can unlock Bitcoin's full potential in Web 3.0. Already hundreds of teams are using Stacks to build dApps, tokens, non-fungible tokens (NFTs), DeFi, DAOs, and more.

The release of the Stacks and Nakamoto releases will transform Bitcoin into the foundational settlement layer and reserve asset of an open metaverse that is autonomous, censorship-resistant, trustless, and personally empowering.