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

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Mars Finance News: Bitcoin’s Layer 2 network Stacks announces that its SIP-034 upgrade has been implemented on the mainnet, increasing network processing capacity for some DeFi applications by up to 30 times. The upgrade optimizes transaction processing limits by resetting only exhausted resources instead of all limits, making better use of block capacity. Alex Huth, Product Lead at Stacks Labs, said this improvement has the greatest impact on complex and read-intensive DeFi applications, such as concentrated liquidity and advanced automated market makers (AMMs). Although the upgrade does not directly change the STX token economy, it is expected to indirectly increase transactions and fees as network activity rises.

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