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The Stacks project is undergoing a significant update called the "Nakamoto Upgrade" to enhance the performance and security of the Stacks chain, making it more like a Bitcoin Layer 2 (L2). The upgrade includes rapid block generation, transaction finality through Bitcoin, and improved MEV (Miner Extractable Value) resistance. Additionally, the introduction of sBTC will allow BTC to be used as a native asset on the Stacks chain, a crucial step towards establishing Stacks as a Bitcoin L2.