I've mentioned the BTC ecosystem before, where I specifically mentioned Stacks and the Satoshi upgrade. Today, I'll continue to talk to you about the Stacks project.
Let's quickly go over the basic information about Stacks. (Stacks is an old project, so just take a quick look at this information.)
From my personal perspective, $STX has never been absent from the market's hype around the BTC ecosystem, but the previous hype was more like "castles in the air" without a solid foundation. After the Satoshi upgrade, Stacks will provide the market with higher expectations through higher performance and sBTC.
So, what exactly did the Satoshi upgrade upgrade?
1. Performance
Previously, Stacks' block confirmation time followed that of Bitcoin (PoX consensus mechanism), with a block time of around 10 minutes. This means that as a BTC Layer2, Stacks was not qualified, as it inherited Bitcoin's security but did not significantly improve the performance at the Layer1 level.
After the Satoshi upgrade, according to Grayscale's estimates, Stacks' block time and Gas fees have been reduced from 6min/6.65u to 5s/0.25u.
Higher performance means better user experience, and better experience means greater appeal to users and developers. It will become the foundation for the development of the Stacks ecosystem. For example, previously, on-chain meme trading on Stacks was quite tiring, but now it will be much easier. We can also see more possibilities for Stacks DeFi, such as a wider range of DeFi products and more DeFi participants.
Additionally, Stacks is optimizing the Satoshi upgrade to achieve lower latency and higher bandwidth. Refer to this article below:
https://bitcoinl2labs.com/optimizing-nakamoto
In terms of thinking, Stacks is still committed to solving the previous problems of Stacks to achieve higher performance. Higher performance is the only way to compete with other high-performance Layer1/Layer2 projects.
2. $sBTC
Regarding DeFi, after the Satoshi upgrade, the sBTC upgrade will occur in early December (at the earliest), and more upgrades will be carried out in January and beyond. The Satoshi upgrade is the foundation for the sBTC upgrade, and the early December upgrade will optimize the Stacks token issuance mechanism and launch sBTC.
By the way, I hope it doesn't keep getting delayed like the Satoshi upgrade.
After the upgrade, sBTC may become an important asset in the crypto market (the previous shenanigans of $WBTC have also helped the development of cbBTC and sBTC, and Coinbase has also delisted $WBTC).
For sBTC, the most noteworthy aspect is its adoption metrics. We can also see that Stacks is making efforts to promote the adoption of sBTC, such as collaborating with Bitcoin ATM operator Coinflip to integrate Stacks and sBTC, and introducing sBTC to Aptos, Solana, and others.
For sBTC, the growth model of cbBTC is very worth referencing. For example, supporting Moonwell and using the $WELL token (and pumping $WELL) as rewards to drive the adoption of cbBTC. (And Stacks has a lot of money, having just raised $20 million in new funding, so they can definitely use their cash to incentivize the adoption of sBTC, such as incentivizing the adoption of sBTC on Stacks, Aptos, and Solana lending protocols.)
Overall, the overall expectations for Stacks are still good: the Satoshi upgrade has brought higher performance, and the introduction of sBTC as the core asset of the Stacks ecosystem, combined with Stacks' strong strength, has also increased the adoption expectations for sBTC.
Finally, a slight digression. Recently, the old public chains have all been doing upgrades, such as Fantom Sonic, Avalanche9000, and their core purpose is to drive the adoption of the public chains. It can be foreseen that the next few months will be quite exciting, and the public chain war is about to begin again~
Enjoy🫡
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TG Channel (where previous market views have been shared): https://t.me/SleepinRain
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