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Stacks, a Layer-2 network built on Bitcoin, has started its Nakamoto upgrade. It's a big deal for Bitcoin fans. The leading crypto lags behind some of its rivals in terms of Layer-2 adoption. The upgrade aims to speed up transactions and enable smart contracts on the world's largest cryptocurrency network. Named after Bitcoin's mysterious creator, the Nakamoto upgrade is shaking things up. It's decoupling Stacks' block production from Bitcoin's schedule. This could be a game-changer for the network's efficiency. Network operators have a two-week window to implement the upgrade. After that, a hard fork will seal the deal. The upgrade introduces a new block production method using a proof-of-transfer consensus algorithm. Here's how it works: users burn bitcoin to mine Stacks blocks and get rewards. It's like killing two birds with one stone. The implementation kicked off in April, with block "signers" coming online to validate transaction "tenures". What are tenures, you ask? They're periods when miners are assigned to produce multiple blocks. These blocks eventually settle on Bitcoin. It's a clever way to boost efficiency. Stacks isn't just about speed, though. Its main goal is to bring more utility to Bitcoin. We're talking smart contracts and other DeFi functions using Bitcoin as a base layer. That's pretty exciting stuff for crypto enthusiasts. As part of this grand plan, Stacks is rolling out sBTC. It's a bridging asset that lets users move their BTC into the Stacks ecosystem. This could open up a whole new world of possibilities for Bitcoin holders. But it's not all sunshine and rainbows in the crypto world. STX, the token that fuels the Stacks network and rewards miners, has taken a hit. It's down over 8% in the last 24 hours. Ouch. To be fair, the broader digital asset market isn't doing great either. The CoinDesk 20 Index has dropped nearly 4%. It's been a rough day for crypto across the board. Now, let's dive a bit deeper into Bitcoin Layer 2 solutions like Stacks. These networks are built on top of the main Bitcoin blockchain. They aim to solve some of Bitcoin's limitations, like slow transaction speeds and limited smart contract capabilities. Layer 2 solutions can process transactions off the main chain, then settle them in batches on the Bitcoin blockchain. This approach can significantly increase transaction throughput and reduce fees. It's like adding an express lane to a crowded highway. Some other popular Bitcoin Layer 2 solutions include the Lightning Network and RSK. Each has its own approach to scaling Bitcoin and adding functionality. But Stacks' Nakamoto upgrade could give it an edge in this competitive space. These Layer 2 solutions could play a crucial role in Bitcoin's future. They might just be the key to making Bitcoin more than just a store of value. Ethereum has the egde in terms of Layer-2 solutions now, but Bitcoin fans would love to see this situation changing. With upgrades like Nakamoto, we might see Bitcoin become a more versatile platform for decentralized applications and finance.

Ethereum's layer-2 scaling ecosystem has hit a new milestone. Daily transactions reached a record 12.42 million on August 12. This data comes from Growthepie, an Ethereum layer-2 block space analytics platform. Leon Waidmann, head of research at the Onchain Foundation, chimed in on X. He reckons "scalability is improving rapidly" and "user activity is at its peak." No kidding. The numbers are pretty impressive. Since the start of 2024, daily transactions have shot up by 140%. That's not small potatoes. Growthepie's counting method is worth noting. They only include transactions from users or smart contracts. System transactions don't make the cut. So what's driving this growth? Look no further than Base, Coinbase's L2 blockchain. It's been on fire lately. In late July, transactions on Base peaked at over 4 million. Basescan, a metrics platform for Base, backs this up. They're reporting a whopping 700% increase in daily transactions over the past six months. That's bonkers. Earlier this year, Cointelegraph pointed to memecoin mania as the culprit. Token minters are flocking to Base for its lower costs and higher throughput. L2beat, another industry metrics platform, has some interesting insights. Overall throughput is up, with average TPS doubling in just two months. More scaling platforms are popping up too. Growthepie dropped another bombshell. Layer-2 networks now host more stablecoins than Solana and Binance Chain combined. We're talking 150% more than Solana and 94% more than BNB Smart Chain. Meanwhile, Ethereum's layer-1 is chugging along steadily. Daily transactions have hovered around 1.1 million for most of this year, according to Etherscan. But here's a kicker: average gas fees on L1 Ethereum have hit yearly lows. Tether, the stablecoin issuer, minted 1 billion Tether for just 53 cents on August 13. Arkham, a blockchain intelligence platform, confirmed this.

Optimism, a key player in the Ethereum scaling space, is shaking things up. They've just dropped a bombshell roadmap for native interoperability across Layer 2 chains in their ecosystem. This move could be a game-changer for the so-called "Superchain". Currently, Layer 2 chains in the Optimism ecosystem rely on Ethereum mainnet for secure communication and asset transfer. This setup has led to fragmented assets and users. The new plan aims to fix this headache. The goal? Make the Superchain feel like one chain. Optimism's devs are gunning for a unified system where users, assets, and developers can move around without breaking a sweat. "The Superchain needs to feel like one chain," the developers stated. "To achieve this, we're setting out to build a unified Superchain where users, assets, and developers move seamlessly across the network and beyond." OP Mainnet is the ecosystem's flagship network. Other chains include Base, Mode, Zora, Lyra, and Aevo. Worldcoin, Sam Altman's digital identity network, is also jumping on the bandwagon with its own Layer 2 network using the OP Stack. The implementation is no small feat. It includes a protocol for cross-chain messages and a universal token standard called SuperchainERC20. These aim to boost cross-chain portability. Security isn't being left out. The devs plan to deploy an interoperable fault-proof system to ensure safe asset transfers. It's a crucial step in building trust in the new system. The roadmap lays out a clear path forward. First up is a developer network to test the message-passing protocol and token standard. Next comes a test network, followed by the mainnet rollout. But Optimism isn't stopping there. They're looking beyond their own ecosystem to the wider Ethereum landscape. The plan is to standardize user experiences across different ecosystems using universal cross-chain interfaces like ERC-7683 for asset transfers. It's worth noting that OP Mainnet and other chains in the Optimism ecosystem use optimistic rollups. This scaling solution aggregates Ethereum transactions off-chain, allowing for cheaper processing and addressing Ethereum's scalability issues.

Aleph Zero, a blockchain startup, has launched its Ethereum-compatible layer-2 solution. The move aims to boost privacy and speed in blockchain transactions. The new layer integrates Arbitrum Orbit technology. It also uses zero-knowledge operating system (zkOS) tools. Aleph Zero's layer 2 will run on top of its existing blockchain. This setup should cut block times to a mere 250 milliseconds. "AZERO, the ecosystem token, will be used on the Layer-2 to power all gas transactions," the company said in a statement. The project is a team effort with Gelato, a rollup-as-a-service provider. It's designed to make Ethereum app development easier. Aleph Zero plans to roll out its zkOS privacy toolkit in Q4. This should speed up zero-knowledge proofs and beef up privacy features. In a parallel move, the firm announced a $50 million funding program. It's meant to attract developers to build on the platform. Antoni Zolciak, Aleph Zero's co-founder, told Cointelegraph the program aims to "fund innovations from developer teams." The cash isn't just grants, but wider support. Zolciak also dished on privacy in crypto. He reckons most users don't get Web3 privacy. They're cool with trading privacy for free stuff. "There's a split between privacy tokens and privacy-enhancing blockchain infrastructure," Zolciak explained. "Most folks don't see the difference."

Ubisoft, the French gaming giant, is launching a new game on Ethereum's layer-2 solution, Arbitrum. This move marks a significant shift in the GameFi landscape, which is hard to overestimate even if you're a radical sceptic about web3 and other blockhain technologies. Here is why. The game, Captain Laserhawk: The G.A.M.E., is based on a Netflix show. It's a nod to a Far Cry 3 expansion from a decade ago, one of the most popular games ever, in case you have forgotten. The title will feature characters from Ubisoft's popular franchises like Rayman and Assassin's Creed. GameFi has been on a roll lately. The sector exploded earlier this year, thanks to Telegram. The messaging app became a hotbed for blockchain gaming. Simple earning minigames using native cryptocurrencies have taken off. Titles like Hamster Kombat and Notcoin have attracted hundreds of millions of players in months. It's been a wild ride. Now, big names from traditional gaming are jumping in. This trend shows no signs of slowing down. Ubisoft's entry could be a game-changer. Details about gameplay are scarce. The community is hoping for a serious effort, not just a cash grab. Ubisoft's reputation is on the line here, as the company has had its ups and downs and some rather complicated periods in relationship with its massive and very pro-active game audience. The company is known for hit franchises like Assassin's Creed, Far Cry, and Tom Clancy. Their involvement suggests this won't be another low-effort play-to-earn game. At least, that's what fans are banking on. GameFi is still in its early days. There are some enjoyable titles out there leveraging blockchain tech. But they often lack the polish of modern PC or console games. That's why Ubisoft's move is both exciting and nerve-wracking for GameFi enthusiasts. It could show other big developers that Web3 gaming is legit. Or it could flop spectacularly, just as some other Ubisoft products have done throughout the years - some gamers will never forget and, what's more important, will never forget that.