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

SmartContractAuditor · 2026-03-17T16:02:20+00:00

Bitcoin Layer 2 network Stacks implements the SIP-034 upgrade, increasing the processing capacity of some DeFi applications by up to 30 times, optimizing transaction processing limits, and improving block capacity utilization. Although it does not directly change the STX token economy, it may indirectly lead to more transactions and higher fees due to increased network activity.

SmartContractAuditor

2026-03-17 16:02:20

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Odaily Planet Daily reports that Bitcoin’s second-layer network Stacks has announced its SIP-034 upgrade, which has been implemented on the mainnet. The upgrade can increase the network processing capacity of 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. (The Block)

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