TL;DR
- Stellar has successfully completed Protocol 20, enabling the integration of smart contracts into its network.
- The Soroban platform facilitates the implementation of smart contracts, which is expected to not only enhance developers’ experience but also attract new participants to the ecosystem.
- Despite the successful launch and the enthusiasm generated, the native token, Lumens ($XLM), has not yet reached its all-time high from over six years ago, suggesting that the market may be responding less positively than expected.
Stellar has completed a crucial upgrade of its network, known as Protocol 20, which marks a significant milestone by allowing the implementation of smart contracts. This long-awaited improvement has materialized after overcoming technical hurdles and delays caused by previous errors. With the implementation of smart contracts on the Stellar network, the foundation hopes to open new opportunities for developers and foster the development of decentralized applications (dApps) in its ecosystem.
The platform facilitating this new functionality is called Soroban, and it is expected to not only improve developers’ experience but also attract new participants to the ecosystem. Smart contracts are self-executing programs that automate actions and transactions on the blockchain network. This means that once executed, transactions are irreversible and recorded immutably on the blockchain. This feature provides a high level of trust in transactions and agreements, eliminating the need for a central authority or legal system.
1/ Today, we've reached an important milestone. #Protocol20 and smart contracts are now live on Mainnet!
The #Stellar network just upgraded to Protocol 20, the most transformative upgrade to the Stellar network to date, marking the beginning of a new era for the network. pic.twitter.com/XxgkA2Ia0H
— Soroban (@SorobanOfficial) February 20, 2024
The launch of Soroban and the implementation of smart contracts represent a significant step for Stellar, as the platform has historically focused on cross-border payments and tokenization. With this upgrade, it aims to diversify its offerings and expand into new application areas within the blockchain ecosystem.
Stellar Continues to Await a Positive Market Reaction to Lumens
To foster development on this new platform, the Stellar Development Foundation (SDF) launched a $100 million funding initiative in 2022 to incentivize developers to build on the Soroban smart contract platform. Over the past two years, the Stellar community has been working collaboratively with the SDF to develop and enhance Soroban’s functionalities.
Despite the enthusiasm generated by this upgrade, Stellar’s native token, Lumens ($XLM), has not yet recovered its all-time high from over six years ago. Although the Protocol 20 upgrade is considered a significant milestone, it seems that the market has not responded as positively as expected.
