Bitcoin News: Stacks Co-Founder Unveils New BTC Restaking Protocol Plan
Muneeb Ali, co-founder of the Bitcoin Layer 2 project Stacks, recently shared exciting updates about future endeavours on the social media platform X. Ali outlined several key advancements leading up to the anticipated Nakamoto part 2 upgrade. Moreover, he emphasized innovations that promise to significantly enhance the capabilities of the Stacks and Bitcoin ecosystem.
Stacks Upgrade To Feature New Bitcoin Restaking Protocol
Ali highlighted the introduction of new Bitcoin restaking protocols, designed to enable BTC yields on Stacks while maintaining liquidity. “These can enable users to deploy BTC in L2 DeFi but keep BTC liquid in their wallet for other/additional use,” Ali explained. Hence, this development is set to offer Stacks users greater flexibility and utility in their Bitcoin holdings owing to the liquidity feature.
Hence, users will be able to stake Bitcoin and also utilize their holdings via a liquid wallet. Another significant advancement is the integration of sBTC, the upcoming native token of Stacks, with major partners. Additionally, Ali noted the robust institutional support for sBTC. He stated, “Several of these are already public, and people can learn about upcoming ones by participating in the open working groups. Institutional support for sBTC has been phenomenal and only growing.”
While the Bitcoin L2’s Nakamoto part 2 upgrade has faced a delay, Ali remains optimistic about the benefits of the extended development period. He mentioned, “The Nakamoto part 2 delay for 8 weeks of additional dev time is not ideal, but that also means (a) sBTC can fast follow Nakamoto, and (b) some of the WASM work that was further along can mature.”
Moreover, this extra time is expected to ensure the stability and robustness of the new features. In addition, Ali also highlighted improvements in testing and upgrade infrastructure, which he believes will lead to faster and higher-quality future updates. He pointed out that “the testing and upgrades infra improved a lot, meaning faster speed to market and higher quality of future upgrades after Nakamoto (sBTC full, WASM, etc).”
Nakamoto Activation Delayed
Security remains 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 Bitcoin L2 project founder noted that “recent events emphasize an increased focus on security, and the ecosystem is already adapting and responding.”
Despite the challenges due to delay, Ali expressed confidence in the resilience and growth of the Stacks ecosystem. “Rome was not built in a day. The Stacks ecosystem has always been about doing the hard things, doing the right things, and marching forward to expand the BTC economy. This ecosystem continues to lead the path for Bitcoin L2s,” he affirmed.
In April, Stacks developer Mitchell Cueves announced an extension to the Activation timeline for the Nakamoto upgrade. The additional time is necessary to develop a more advanced Signer resiliency/recovery system. “Core developers no longer feel comfortable shipping without this more advanced system,” Cueves explained, underscoring the importance of ensuring network stability and security.
Thereafter, the Stacks team shifted the Nakamoto activision date to August 28, 2024. The new timeline aims to deliver key benefits, including better miner resiliency, improved handling of Signer responsiveness, and enhanced network stability. With these updates, the Stacks community looks forward to a more secure and robust ecosystem. It will continue to build on Bitcoin’s foundational strengths.
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