Stellar’s path to progress: Unveiling Protocol 20 upgrade for enhanced innovation and growth
Crypto News: The Stellar blockchain has embarked on a transformative journey with the initiation of its much-anticipated “Protocol 20” upgrade. This milestone marks a significant leap forward in the capabilities of the Stellar network, introducing Ethereum-style smart contracts as part of the Soroban project. The upgrade has been eagerly awaited within the Stellar community, promising enhanced functionalities and paving the way for a new era of decentralized applications (dApps) and innovation on the platform.
The Stellar Development Foundation, entrusted with the task of nurturing the Stellar ecosystem, has officially confirmed the commencement of the Protocol 20 upgrade following the green light from validators. This approval signifies a crucial step forward in the evolution of the Stellar network and underscores the collaborative efforts of stakeholders in driving its growth and development.
The implementation of the Protocol 20 upgrade will unfold gradually, with validators adopting a phased approach to ensure a smooth transition. One of the key strategies involves incrementally increasing limits for Soroban transactions until reaching full capacity. This measured approach is aimed at mitigating potential disruptions while providing developers and users with the opportunity to adapt to the changes and explore the new capabilities offered by the upgraded network.
Central to the Protocol 20 upgrade is the integration of Ethereum-style smart contracts through the Soroban project. This addition represents a monumental shift for the Stellar blockchain, enabling developers to create and deploy a wide range of decentralized applications, similar to those found on the Ethereum network. The introduction of smart contracts opens up a myriad of possibilities for developers, allowing them to build sophisticated financial instruments, decentralized exchanges, and more on the Stellar platform.
The decision to incorporate smart contracts into the Stellar network underscores its commitment to staying at the forefront of blockchain innovation. While Stellar initially emerged as a fork of the Ripple protocol in 2014, it has since evolved into a robust and versatile blockchain ecosystem in its own right. By embracing programmability akin to Ethereum, Stellar aims to expand its utility and attract a broader community of developers and users.
However, the Protocol 20 upgrade has not been without its challenges. The Stellar Development Foundation, led by Tomer Weller, encountered a minor setback when a bug was discovered in the Stellar Core v20.1.0 software, just days before the initially targeted rollout date of January 30th. In response, developers and validators made the prudent decision to postpone the upgrade temporarily, allowing time to address the issue comprehensively.
Despite the delay, the Stellar community remains optimistic about the future prospects of the Protocol 20 upgrade and its potential impact on the ecosystem. The introduction of smart contracts is expected to catalyze innovation and drive adoption on the Stellar platform, ultimately bolstering the value proposition of its native XLM tokens, also known as “lumens.”
Speaking of XLM, the project’s native cryptocurrency has witnessed a modest 21% gain over the past year, trailing behind the broader market performance represented by indices such as the CoinDesk 20 large-cap digital assets index, which posted a 67% gain over the same period. However, with the rollout of the Protocol 20 upgrade and the anticipated influx of new projects and applications, XLM could see renewed interest and potentially experience a surge in value as the Stellar ecosystem continues to evolve and mature.
