Stellar Development Foundation Activates Protocol 20 and Smart Contracts
On February 20, the Stellar Development Foundation (SDF) announced a significant upgrade to the Stellar network with the validators’ vote to adopt Protocol 20. This marks the introduction of smart contracts to the network, a technological advancement that is poised to enrich Stellar’s ecosystem notably.
Mainnet Upgrade to Protocol 20
The activation of Protocol 20 on the Stellar network signifies a milestone in growth and development. With the introduction of smart contracts, the network is set to enhance scalability and efficiency, paving the way for new opportunities and use cases.
Phased Rollout of Smart Contracts
The implementation of smart contracts, known as Soroban, will occur in stages to ensure the network’s performance, security, and stability are not compromised. This gradual approach allows for a smooth transition and ensures that the network’s validators can monitor each step carefully.
Soroban’s deployment follows extensive testing, with over 160 projects on Stellar’s Testnet and significant funding through the Stellar Community Fund to support developers. The transition from Testnet to Mainnet for these projects will mark the beginning of phase 1, during which decentralized applications (dapps) will become available to the public.
The Soroban Advantage
Soroban is designed to be secure, scalable, and cost-effective. By utilizing Rust and WebAssembly (WASM), developers have access to familiar and trusted tools, making smart contract creation more accessible. The Soroban smart contracts aim to address common blockchain issues, such as state bloat, through a fees and metering structure that prices individual resource consumption independently.
Impact on Financial Accessibility
The introduction of smart contracts on Stellar aligns with the network’s mission to provide financial services to the underserved global population. These smart contracts are expected to create new opportunities for builders and users, fostering a more inclusive financial landscape by bridging the gap for those without traditional banking access.
Stellar’s Established Ecosystem
Stellar’s established network of exchanges, on and off-ramps, custody providers, and wallets offer a solid foundation for developers and entrepreneurs. With a proven track record of reliability, Stellar positions itself as a reliable platform for projects leveraging the new smart contract capabilities.
