Stacks a top Bitcoin Layer 2 platform faces network problems for the fourth time in 2021

The self-proclaimed top Bitcoin (BTC) second-layer network has faced block production issues, causing a halt for the fourth time this year. Stacks (STX) is a blockchain that connects to Bitcoin and offers enhanced transaction throughput, staking, and smart contracts.

On June 14, Colin Wu reported that Stacks experienced a block interruption lasting over nine hours, halting block production at height 153917, a recurring issue in 2024. According to data from explorer.hiro, block 153917 was live at 1:12 a.m. UTC, with the following block, 153918, appearing nine hours later at 10:20 a.m. UTC, causing a pause in network transactions.

Stacks has encountered block generation problems multiple times this year, with interruptions on January 31, March 17, April 2, and June 14, 2024, attributed to “block behavior.” The recent issue was blamed on unexpected block behavior combined with a Bitcoin reorg, although there have been no recent reorganizations on the Bitcoin network, as noted by X Community Notes.

A Bitcoin chain reorganization involves a new, longer chain replacing the accepted chain, leading to reversals of transactions and block rewards for miners on the old chain. Reorgs can cause confusion and financial losses, impacting second layers like Stacks built on Bitcoin.

The upcoming Nakamoto update on Stacks aims to address these network issues. The update decouples block production from the Bitcoin blockchain, introducing a new consensus mechanism called “proof-of-transfer” to increase speed and scalability. This allows Stacks miners to produce multiple blocks between Bitcoin blocks, enhancing transaction throughput and user experience.

The Nakamoto update also introduces sBTC, a trust-minimized bridge to facilitate BTC porting into the Stacks ecosystem. This development is expected to boost the growth of the Stacks DeFi economy, already a mature player in the Bitcoin space.

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