Bitcoin Layer 2 Network Stacks Implements SIP-034 Upgrade to Enhance Network Processing Capacity

Odaily News Bitcoin Layer 2 network Stacks announced that its SIP-034 upgrade has been implemented on the mainnet, which can increase the network processing capacity for certain DeFi applications by up to 30 times. The upgrade optimizes transaction processing limits by resetting only the exhausted single resource limit instead of all limits, thereby utilizing block capacity more efficiently. Alex Huth, Head of Product at Stacks Labs, stated that this improvement will have the greatest impact on complex and read-intensive DeFi applications, such as concentrated liquidity and advanced automated market maker (AMM) designs. While the upgrade does not directly alter the STX token economics, it is expected to indirectly increase transactions and fees as network activity grows. (The Block)