Stellar Network Advances with Protocol 20 and Smart Contracts Activation
Rebeca Moen Feb 21, 2024 09:56
Stellar Development Foundation activates Protocol 20 and smart contracts on its network, enhancing scalability and efficiency, and marking a milestone in growth.
Mainnet Upgrade to Protocol 20
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.
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 measured approach allows for incremental capacity increases for smart contract transactions, with the network's validators carefully monitoring each step.
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 signal the commencement of phase 1, after which decentralized applications (dapps) will become available to the public.
The Soroban Advantage
Soroban is designed to be secure, scalable, and cost-effective. It employs Rust and WebAssembly (WASM), which provides developers with familiar and trusted tools, reducing the barrier to entry for smart contract creation. 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 decade-long mission to provide financial services to the underserved global population. The smart contracts are expected to open new doors for builders and users alike, enabling 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 robust foundation for developers and entrepreneurs. With a proven track record of reliability, Stellar positions itself as a solid starting point for projects leveraging the new smart contract capabilities.
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