This episode introduces Stacks, a Bitcoin layer designed to enable smart contracts and decentralized applications to utilize Bitcoin as an asset. It highlights Bitcoin's inherent security and settlement capabilities but also its limitations in programmability and speed. Stacks aims to extend Bitcoin's functionality without altering its core, offering innovations like a decentralized Bitcoin peg (sBTC), transactions secured by Bitcoin finality, and a safe smart contract language called Clarity. The upcoming Nakamoto release promises enhanced capabilities, making Bitcoin a more productive asset and the foundation for a more secure web3, while also detailing Stacks' consensus mechanism, security model, and future performance enhancements through subnets and potential integration with rollups.