# Why NakamotoDEX

Bitcoin is the most decentralized, secure, and durable blockchain. BTC is a unique, widely held asset and the Bitcoin blockchain is the best final settlement layer for transactions. Applications that want to maximize decentralization and durability should use BTC as their asset and perform final settlement on the Bitcoin blockchain. However, to preserve its valuable properties, the Bitcoin blockchain is—by design—slow, minimal, and resistant to change. For example, it does not natively provide fully-expressive smart contracts or fast performance, so sophisticated applications cannot be built directly on it. Therefore, BTC remains a passive asset and most applications are instead built on Ethereum and other layer-1 (L1) blockchains that have less powerful native assets than BTC. \
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Stacks is a Bitcoin layer for smart contracts; it enables smart contracts and decentralized applications to trustlessly use Bitcoin as an asset and settle transactions on the Bitcoin blockchain. The initial version of Stacks, launched in early 2021, introduced Bitcoin settlement of transactions, the Clarity language for safe contracts that can respond to Bitcoin transactions, and atomic swaps of assets with BTC. The next major proposed upgrade of Stacks, the Nakamoto release (expected 2023), adds important capabilities that will enhance the power of Stacks as a Bitcoin layer: (a) a decentralized, two-way Bitcoin peg to move BTC in/out of the layer and write to Bitcoin, (b) transactions secured by Bitcoin finality, and (c) fast transactions between Bitcoin blocks. The resulting Stacks layer makes Bitcoin a fully programmable asset in a trustless manner. This can make hundreds of billions of dollars of passive Bitcoin capital productive, unlock it for decentralized applications, and make Bitcoin the backbone of a more secure web3. The Stacks layer for smart contracts has the following innovations that make it unique:\
**S** Secured by the entire hash power of Bitcoin (Bitcoin finality).

**T** Trust-minimized Bitcoin peg mechanism; write to Bitcoin

**A** Atomic BTC swaps and assets owned by BTC addresses.

**C** Clarity language for safe, decidable smart contracts

**K** Knowledge of full Bitcoin state; read from Bitcoin.\
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**S** Scalable, fast transactions that settle on Bitcoin.\
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We, NakamotoDEX, a fully decentralized exchange built on the Bitcoin network, leverages the Layer 2 Stacks blockchain solution to maximaze security and scalability. Building on Stacks meaning our supreme goal is to balance between security, scalability, and community-driven innovation, offering a secure, efficient, user-friendly experience on the Bitcoin Network.
