# Stacks Strengthens Position as a Leading Bitcoin Layer 2 Solution

Stacks (STX), a Layer 2 solution for Bitcoin, has played a pivotal role in enhancing the scalability and performance of the Bitcoin network over the past few years. Notably, the recent Nakamoto upgrade has significantly improved its utility within the Bitcoin ecosystem, solidifying its reputation as a prominent player in the global Bitcoin Layer 2 landscape.

# Interview with Kyle Ellicott of Stacks Asia Foundation

At the KBW 2024 event held at Walkerhill, Block Media met with Kyle Ellicott, Interim Executive Director of Stacks Asia Foundation, to discuss Stacks’ role in the Bitcoin ecosystem and the implications of the Nakamoto upgrade.

### Q: Could you briefly explain Bitcoin Layer 2 and Stacks?

A: Drawing a comparison between Bitcoin and Ethereum, we see that Ethereum expanded through Layer 1 solutions and subsequently introduced Layer 2 and additional layers like subnets and Layer 3, forming a robust tech stack for platform and application development. Similarly, Bitcoin has built a comparable structure. Scaling solutions emerged in 2017 and 2019, enabling more use cases and applications within the Bitcoin network. By 2024, solutions like Stacks, Lightning, and Rootstock (RSK) have provided enhanced scalability and diverse functionalities in the Bitcoin ecosystem.

### Q: The Nakamoto upgrade was slated for early this year. What caused the delay, and what is the current status?

A: The Nakamoto upgrade is crucial for Stacks. Since 2021, Stacks has provided programmability linked to the Bitcoin network. As the need for large-scale and high-frequency transactions grew, we initiated the Nakamoto upgrade, marking the most significant update since the mainnet launch in 2023. We began the first phase in April, introducing a technology to reduce block time from ten minutes to five seconds. The second phase is currently underway, with plans to introduce a signer network in conjunction with a hard fork in the coming weeks. The upgrade undergoes rigorous testing to prioritize security and performance.

### Q: Babylon Labs recently unveiled the first phase of the Bitcoin Staking Mainnet. What impact will this have on the Bitcoin ecosystem?

A: Bitcoin staking will have a substantial impact on the Bitcoin ecosystem. Stacks introduced the first staking model where users stack STX tokens and earn rewards in Bitcoin. By 2024, liquid staking will allow users to freely deposit and withdraw funds while earning returns. Companies like Babylon are ushering in an era of re-staking, connecting Bitcoin to other networks for re-staking. This technology will elevate the entire Bitcoin ecosystem and promote native Bitcoin staking.

### Q: Bitcoin maximalists argue that Stacks coins threaten Bitcoin’s reward mechanism. What are your thoughts?

A: I hold a positive view of Bitcoin maximalists. They were instrumental in making Bitcoin the secure and stable network it is today. Their cautious approach has kept Bitcoin safe for over 15 years, fostering further innovation. While new networks and layers like Stacks generate diverse opinions, I believe their role in maintaining network security and reliability is paramount.

### Q: Many communities in Korea are enthusiastic about Stacks. Do you have any advice for Korean investors?

A: I am deeply grateful to the Korean community, especially Stacks supporters in Seoul. Korea is one of our largest markets, and your warm reception is greatly appreciated. The passion of the Korean community for Stacks and Web3 is a tremendous source of support for us. We look forward to the next steps for Stacks and the Nakamoto upgrade.