So, What, Bitcoin is Just Ethereum Now?

TL;DR

• Stacks, the Bitcoin L2, can now process faster transactions and push all settlements to the BTC L1 (pretty much exactly the same method ETH is using to scale).

Full Story

Is it just us or does it feel like Bitcoin is trying to become the new Ethereum?

Yesterday we covered BTC’s adoption of one of ETH’s key features (token creation) — and not 24hrs later, we’re covering another feature yoink.

Stacks, the Bitcoin layer 2, just went through its Nakamoto upgrade, enabling it to process faster transactions and push all settlements to the BTC layer 1.

(Ooops! We made a word salad!)

Here’s what that all means:

Stacks is acting like a banking app on an iPhone. The app uses the bank’s infrastructure to process transactions — the iPhone has no part in that.

What it does have a part in is the app’s security (to log-in, users need to pass a FaceID check).

Same goes for Stacks and Bitcoin — Stacks processes transactions on its own network, but relies on Bitcoin for security.

And if this is all feeling eerily familiar — that’s because Ethereum L2’s work the same way.

So, what, R.I.P. Ethereum?

Nope! The Ethereum network is established well enough to weather a little competition (even if its coming from Bitcoin).

Continuing with the theme of smartphone analogies, way we’d frame it like Apple’s iOS and Google’s Android platforms…

Both can exist and grow in the same space, without destroying one another.

And for us as consumers — this competition and optionality pushes innovation, making developments a net positive on both sides.

We love to see it!