Catenaa, Sunday, November 17, 2024-Muneeb Ali, founder of Stacks and CEO of Trust Machines, announced on X that the long-awaited sBTC upgrade is anticipated for early December.
This upgrade is designed to introduce a trustless, two-way bitcoin peg system, making sBTC the first asset of its kind to enhance decentralized finance (DeFi) capabilities on the Bitcoin blockchain.
Stacks’ sBTC aims to address Bitcoin’s “write problem,” which complicates data writing on Bitcoin’s main chain—a barrier for integrating DeFi applications.
By enabling smart contracts to send sBTC to a Bitcoin address and later retrieve it as BTC, sBTC offers a decentralized alternative to other wrapped Bitcoin tokens like wBTC and cbBTC, which rely on centralized custodians.
According to Stacks’ whitepaper, sBTC’s decentralized peg system aligns with Bitcoin’s philosophy, involving permissionless and incentivized participants to manage the peg. This move reflects Stacks’ broader aim of upgrading Bitcoin’s Layer-2 systems to foster diverse DeFi use cases.
Ali highlighted that this decentralized pegging would unlock new avenues for capital productivity within the Bitcoin ecosystem, further enhancing Bitcoin’s value.
